Zalando increases rates for merchants

Zalando is introducing a base rate for third-party sellers and brands starting July 1st. Partners will have to pay a monthly 40 euros. In addition, the fashion retailer will increase commissions per sold item for certain products.

Until now, the German marketplace only charges a commission for successful sales by partners. In the past few months, marketplaces Amazon and eBay have also increased their rates for sellers.

Subscription fee of 480 euros

Selling through Zalando will become more expensive starting July 1st. The ecommerce giant will introduce a flat subscription fee for partner sellers. Merchants participating in the Connected Retail and partner program will pay 480 euros per year. This will take the form of a monthly 40 euros.

Retailers will pay a commission up to 22 percent.

The platform is also adjusting commissions for Connected Retail, a program for brick-and-mortar stores to sell on Zalando. At the moment, sellers pay a commision between 5 and 18 percent of the gross sales price. Starting in April, the range will be from 5 to 22 percent. This change should even out the percentages with the commissions paid by brands.

Exclusive items more expensive

Furthermore, merchants will only be allowed to offer products already sold on Zalando when it is sold out. For these products, the retailer pays a commission between 5 and 22 percent. For items that a retailer sells exclusively on the platform, Zalando applies an even higher rate: a commission between 7 and 25 percent.

Before March 31st, sellers have to decide on the new terms.

According to the fashion platform, the cost for payment services will remain between 1.45 and 1.55 percent. However, they may still be increased in 2024. Sellers have until March 31st this year to calculate how the new costs affect their margins. The platform sees orders executed after that date as an acceptance of the new terms.

Layoff 5 percent of employees

Earlier this week, Zalando announced it will cut hundreds of jobs. According to the founders, the company is facing economic slowdown after the pandemic. “We are not where we need to be and as a result, we must take even more decisive action”, founders Robert Gentz and David Schneider said in a note to employees on Tuesday.