Zalando supports fashion brands with online retail

01 Apr '20

2 min read

Pic: Zalando

Zalando has launched the new Connected Retail programme for physical fashion stores to support their businesses amid the COVID-19 crisis. The fashion industry and physical retailers have been affected by social distancing measures and lockdowns in several countries. According to a 2019 Statista report, 87 per cent of European fashion sales are made offline.

“As European fashion platform, we want to use our capabilities and resources to help solve the most urgent challenges during this crisis. With the Connected Retail programme, physical retailers can connect with the Zalando platform and sell their products directly to our online customers. Currently, more than 1,500 brick-and-mortar stores in Germany and the Netherlands are connected to our platform, where they generate a relevant share of their revenue. Due to the urgency of the situation for many, we have accelerated our efforts to help physical stores: we’re waiving commission and shifting to a weekly pay-out schedule,” Carsten Keller, VP direct to consumer for Zalando said in a press release.

The dedicated offering applies to brands and physical retailers in Germany and the Netherlands starting April 1, 2020 and remaining valid until May 31, 2020. In this period, Zalando will waive commissions for new and existing Connected Retail partners and will shift from a monthly to a weekly pay-out schedule to help mitigate financial distress and contribute to liquidity. Connected Retail is open to every retailer and brand with physical stores, as long as they offer products sold on Zalando. Stores can easily connect their stock to our platform: Zalando provides online content, payment services, customer care, and dedicated support through a personal account manager.

Once established in the programme, stores can fulfil orders that Zalando customers place on our platform. Carriers (DHL in Germany, PostNL in the Netherlands) pick up orders directly from the specific store; similar to how a customer would in an everyday situation. Any returns are delivered straight back to the store as well.

“Connected Retail is a comparably young business and still in the ramp-up phase. Flaws may emerge in the coming weeks, but we recognise the importance of acting quickly. We want to offer physical retailers access to online demand now. Our team will continue to work closely with our partners to manage any friction points as smoothly and cooperatively as possible,” Keller said.

Fibre2Fashion News Desk (GK)

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