Trending

  • Live within two weeks with dexport Shop Launch Los geht's
  • Need localization? Arrange your German return address through Dexport Los geht's
  • Six months of free selling on Kaufland?Los geht's
  • Accelerating your growth on Amazon? Los geht's
  • Working with the best German marketing team in the Netherlands? Los geht's
  • Boosting your sales with our German influencer network? Los geht's

Selling on German marketplaces: know what you're doing!

De totale Duitse e-commerce markt was in 2022 goed voor 72,8 miljard euro. Daarvan was de helft afkomstig uit marktplaatsen. Verwacht wordt dat marktplaatsen alleen nog maar groter zullen worden. Als Nederlands merk kun je via Duitse marktplaatsen dus snel een miljoenenpubliek bereiken. Welke marktplaatsen zijn er, wat heb je nodig en hoe zorg je voor winstgevendheid? De helft van de Duitse consumenten start zijn zoektocht naar een product direct op Amazon, OTTO, eBay of Kaufland. Google wordt steeds vaker overgeslagen. Vindbaarheid is echter niet de enige reden waarom je het verkopen via marktplaatsen in overweging moet nemen. Ook het aantrekken van nieuwe klanten, data en omzetstijging zijn beweegredenen om op marktplaatsen in te zetten.

The German marketplace landscape

In total, there are more than 170 German marketplaces in the DACH region (Germany, Austria and Switzerland) and this number is growing steadily. The number of marketplaces has doubled in the past five years. About a third sell both marketplace and retailer (Amazon, Kaufland and Zalando). Each marketplace has its own orientation. You have the well-known generalists such as Amazon, eBay and OTTO and other generalists that are gaining traction such as Kaufland and Rakuten. In addition, you have more specialized marketplaces. For example, there is ManoMano for the do-it-yourselfer, Möbel.de for furniture, Avocadostore.de for sustainable products and Etsy specializes in handmade and unique products. The difference between the marketplaces lies mainly in their focus on certain target groups and product categories. Because each marketplace has its own growth strategy, it is different for each brand or retailer which marketplace offers the best opportunities. Among themselves, these different marketplaces fight for market share within the various product categories. For example, OTTO, Möbel.de and eBay are competing for the furniture market, and Amazon is also targeting the fashion market, where Zalando currently reigns supreme. Alibaba, with an estimated 50,000 to 100,000 orders per year, is still a relatively small player in Germany.

Amazon the largest generalist

Amazon is the absolute market leader in Germany. 54% of German e-commerce is now realized by Amazon and this marketplace keeps growing. Due to its generalist nature, Amazon is a great springboard for most Dutch companies to increase sales and awareness in Germany. With its own Storefront (a shop-in-shop at Amazon), SEO and Amazon campaigns, a brand can position itself well and benefit from its large reach. Despite its success, however, Amazon is not the best choice in all product categories

Zalando the Number One for Fashion

If you sell fashion-related products you can't ignore Zalando. Since 2011, the company initiated the growth strategy of opening its marketplace to external sellers. Meanwhile, Zalando is realizing 700 million euros in sales through its marketplace and the company wants to grow this to as much as 8 billion by 2024. Last year Zalando took a big step in this by connecting Zara and H&M to its own platform. If you want to sell your own brand through the Zalando marketplace, you can only do so within the categories of clothing, shoes, accessories and sports. In addition, Zalando maintains strict conditions. For example, it is necessary that you offer free shipping, accept 100 days of return rights and have delivery handled by DHL.

Feed management tools essential

Once you've found the right marketplace to match your brands, the key is to post your products to various marketplaces with the right prices and content. How you do that helps determine your success. Product information, categorization, images and prices directly affect conversion and your findability. You need German-speaking specialists who incorporate the right keywords into the product feed. Ideally, you determine the best approach for each platform and develop an optimal feed for each marketplace. This is where specialized tools, such as ChannelEngine, EffectConnect and ChannelAdvisor help you. They enable the link between your offer and the many marketplaces. You only have to manage the product information in one place and the tool transfers the information correctly to the platforms.

Profitability is the challenge

Despite the fact that marketplaces can provide revenue growth, realizing profits is more challenging. This is because the costs for marketplaces can add up quickly. Depending on the marketplace, you quickly pay commission, advertising costs, subscription fees, the investment of hours and tooling. According to Händlerbund's study Online-Marktplätze im Vergleich among 1,077 online sellers, eBay appears to be the cheapest marketplace and Amazon the more expensive. At Amazon, you quickly lose 20 to 25 percent of your margin in advertising costs and commissions. If you have several products on the marketplace, you need to keep a close eye on the profitability of each product. Andreas Giese, CEO of Dexport, an agency specializing in marketing for the German market, has also noticed this.

"We often see entrepreneurs enthusiastically start selling on various marketplaces. They sell a lot, but don't make a euro profit. This happens especially when companies don't have an understanding of the complete cost structure." While one product generates lucrative sales, advertising for another can eat up some of the total margin again. Again, using the right tools is very important. Using a tool like ProfitWiser helps to get a handle on this. Within this marketing tool, commissions, advertising and handling costs are added up per product and you can take action directly from the tool.

Take charge of German marketplaces

German marketplaces are growing tremendously and selling on German marketplaces can give your brand a tremendous boost. To keep the sales channel manageable and profitable, it is important to make a good selection. Choose the marketplaces that suit your brand and ensure proper automation. Use the necessary tools that provide real-time insight and make effective and timely adjustments where needed. In addition, the marketplace landscape continues to evolve. What is the right choice today may be different tomorrow. It is therefore advisable to keep abreast of all developments. Engage with peers and visit events. This is the only way to keep up with the rapidly changing landscape. An initiative such as the CrossBorder Event is a good example of this. The event on October 1 will focus on themes such as selling internationally through marketplaces.

Do you want an optimal mix between selling on German marketplaces and generating sales with your German webshop? Then get in touch with us!