OTTO is the second largest online retailer in Germany, but also available in Austria, Belgium, the Netherlands and Russia. It has 9 million active customers and reaches 45% of all households in Germany and should therefore be taken into consideration by everyone looking to become more established on the German market.
Once a connection with OTTO is established this marketplace has proven to be extremely lucrative for anyone looking to become more recognized on the German market. OTTO’s entry criteria are fairly strict but should not scare away any ambitious seller. To register you are required to have a catalogue of at least 100 different product lines as well as paying a one-off registration fee of 10k €. This connection fee covers the following:
- Creating the Partner in OTTO System
- Back-end installation of the partner
- Synchronising of the master data
- Performing a test order
- Clustering of the articles and uploading to the shop
- Completion and correction
Once connected, OTTO provides different options for support in the areas of appearance, advertising, analytics and operations through their Brand Connect program.
The Most Profitable Catalogue
Due to the relatively high commission fees of 15-50% on OTTO, sellers have reported that selling items for under 20€ is not lucrative. This should be taken into consideration as well as the fact that most OTTO customers are female, 25-55 years old, probably married, and have an income which is above average. These customers are looking to buy good quality, mid-range products, but are most likely not looking for luxury items.
Targeting The Audience
Tailoring the catalogue as well as the on-site appearance of the products is key to successfully selling on OTTO.de. The customers here want to buy from reliable, trustworthy sellers, as well as support a German company, which is why they choose OTTO over other online marketplaces. The company claims to be interested in more than just economics, they want to develop a trustful relationship with the sellers as well as the customers; they want to inspire confidence as well as create a pleasant shopping experience for the customer. The majority of these customers are female and middle-aged, and highly affected by aesthetics and branding. A clear and detailed product description as well as appealing pictures are therefore important for your success on the platform.
Branding and Advertising
The average OTTO customer is highly influenced by a brands name, its familiarity and its reputation. OTTO offers different advertising options such as banners, on and off the OTTO.de site. Promotions like these will increase brand awareness among the customers, who want to feel confident in the product right from the moment they buy it. OTTO offers many different advertising opportunities which are negotiated on a case by case basis and can help reach the retailer’s over 9 million customers.