Interview with Jesper Ravn from Adjutant about Zalando Partner

Introduction

Last week, we had the pleasure of speaking to Jesper Ravn from Adjutant, an international marketplace partner company that specializes in assisting fashion brands with marketplace integration & optimization on marketplaces, particularly Zalando. We questioned Jesper about the challenges that companies might face when they want to integrate Zalando as part of their sales channels. His answers were very insightful, and if you continue reading below, you can see all of his detailed answers for yourself!

Would you start by introducing yourself and Adjutant, who are you and what do you do?

My name is Jesper Ravn. I am the founder of Adjutant, an international marketplace partner company. Our staff consists of a mix of people with backgrounds in both tech and fashion. Specifically, we help companies become Zalando Partners and launch their brands on Zalando.

We do this by setting up a brands own partner account on Zalando, integrating this account to our central platform system, and operating it for and with the brand. In short, we take care of all integration and operational tasks of being on a marketplace. And use data-driven analysis to actively better a brands P&L performance.

What is a Zalando Partner?

Previously, companies would sell their products directly to Zalando, who would then resell the products on their own platform. Nowadays, that approach has been replaced why what is known as the Zalando Partner Program. This program gives brands access to the platform, meaning that they can sell their products directly to consumers using Zalando’s marketplace.

To become a Zalando Partner, brands need to fit certain criteria and be approved by Zalando in order to be able to use the marketplace. This process requires a substantial amount of paperwork and bureaucracy as well as a somewhat complicated integration process, where the company’s system is set up to match the information and system requirements put forth by Zalando.

This area is where Adjutant usually comes into play, we help alleviate the burden on companies by taking the lead on this bureaucratic process, ensuring that all appropriate criteria and deadlines are met in order to optimize the brand’s chances of success.

What are the biggest challenges of getting a company launched on Zalando and generating sales through the marketplace?

The integration process is usually the most challenging part of launching a brand on Zalando. As previously mentioned, the process can be quite long-winded and tedious for the company. Commonly, a substantial amount of various types of documentation is needed, which also oftentimes goes through several rounds of revision before final approval.

Furthermore, the company needs to be aware that a certain amount of financial risk is involved with placing wares elsewhere than their own warehouse. Especially smaller or medium-sized companies the amount of product they ship down to the Zalando warehouse might constitute a substantial amount of their total product inventory. Simultaneously, the payment period is significantly longer from Zalando as opposed to from an independent webshop. Hence, companies should be prepared for these financial circumstances before attempting to launch their brand on Zalando.

What competencies does a company need to have in-house to ensure that they can successfully utilize the Zalando marketplace?

The initial period of establishing a brand on Zalando is the one that requires the most resources of the company itself. Some decision-making authority is required, so oftentimes C-level executives will be involved in the initial establishing phase. Furthermore, the brand needs a collaborator with some level of IT skills to be able to understand and assist with the requirements for the integration process.

Then after the initial process of integration, some IT competencies are still required, as sometimes Zalando changes its requirements, tags, etc. which then in turn requires the brand to adjust its information and system accordingly. Lastly, we as a partner need to have a primary collaborator from the brand to communicate with. This person also needs some level of decision-making authority and needs to convey their wish for data analysis, consulting, counseling, etc. so that we can tailor our services accordingly to the specific customer.

Are there certain values & metrics that Zalando pays special attention to regarding new brands/companies?

As time has passed, Zalando has certainly become more critical of the content that brands provide for their products. We expect that the standards will only continue to rise. Hence, brands should ensure that their brand & marketing material is of high quality and in accordance with Zalando guidelines. But in turn, brands that are accepted onto the platform are also offered more opportunities than previously.

Can you highlight some specific categories/products that are trending or perform especially well on Zalando?

In good news, Scandinavian brands in particular have high traction on the platform. On average, Scandinavian brands see the most success on the platform compared to brands from other regions of Europe. What exactly causes that outcome is hard to determine but it seems that Scandinavian brands have a good read on current consumer trends and thus produce products that appeal to a large customer segment within Europe especially.

Currently, we have observed an increase in demand for Plus Size and Unisex products from Zalando. Moreover, products with a clear sustainability profile are in very high demand in almost every market. Similarly, high-cost products with a focus on quality reduce the cost impact of shipping, storage, etc. per purchase compared to cheaper products. Thus, in many cases, it may also be beneficial for brands to focus more on high-cost products to maximize profits.

Should companies choose to ship products from their own warehouse or use Zalando’s facilities?

We highly recommend that companies choose to use Zalando’s own facilities. It can be a costly and frustrating affair to align one’s own warehouse procedures with Zalando’s requirements. Integrating your own warehouse with Zalando’s system is very complicated and in almost all cases it will end up costing more when compared with simply using Zalando’s established infrastructure. Using your own warehouse for Zalando products requires significant customer support resources and on top of that it can have consequences for your presence on the platform if you can’t meet their delivery thresholds to all the relevant markets.

Are there other marketplaces except Zalando that would be relevant for companies to consider?

Currently, our philosophy is that if you can’t make it on Zalando then it won't benefit you to try alternative marketplaces. Usually, if you are having trouble making it onto Zalando then you should look into optimizing other metrics and developing other avenues of your business to make it more robust instead of trying your luck on other marketplaces. The requirements for success on other platforms are very similar to those on Zalando, thus you are unlikely to generate a lot of profit on other marketplaces if you can’t on Zalando.

Do you have one piece of crucial advice for companies that want to sell their products via Zalando Partner?

Be patient. Results do not happen overnight, and while the potential of marketplaces such as Zalando is huge, it takes time and careful effort to realize its full potential. The initial process might be frustrating, but once it is concluded, and we start getting some data on the performance of your products, we can truly start to optimize your presence and ensure that your portfolio of products is tailored specifically to maximize revenue. So, don’t be deterred by a lackluster initial performance, every newly launched brand needs to first establish a presence on the marketplace in order to grow their brand recognition among the target audience.

Also, a piece of general advice is that companies shouldn’t underestimate the value of data and data analysis. Too often we encounter companies without a proper setup to analyze the performance of their various products and business metrics in general. Proper Business Intelligence can do wonders for optimizing company performance and can provide you with avenues for growth and opportunities that you previously wouldn’t have thought of.

If you could give some advice to young people who want to work in fashion, what would that be?

Be flexible and explore any opportunity for learning that you encounter! As we have seen over the past decades, willingness to adjust and learn new skills is vital to reach success in the fashion industry. Sales processes, channels, and opportunities have changed immensely, and this trend does not seem to slow down. Thus, we expect that those who pursue new avenues, even those that may seem unrealistic at the time, will be better equipped to tackle challenges and ensure that their respective companies are well-equipped to meet ever-changing consumer demands and preferences.

Do you have any predictions for what might be the next big sales channel for fashion companies?

Well sales channels are hard to predict. But I’m sure that with all the development of digital tools we are seeing currently, something new and exciting will emerge sooner rather than later. However, some concrete advice that I can give right now is that companies, even small and medium-sized companies, should look beyond the borders of Europe and the West to explore opportunities in other growing markets such as Asia. Establishing a presence in the Asian market can truly elevate a brand’s revenue and growth opportunities if executed properly. Furthermore, finding any ways to minimize financial risk when dealing with marketplaces and other third-party actors can be really beneficial for your company’s revenue and bottom line.

Is physical retail dead?

No, I wouldn’t say so. Having a physical store can still hold immense brand and marketing value for fashion companies. However, in today’s market, a brand cannot survive solely with a physical presence. Thus, a physical store should always be accompanied by an equally, if not more, strong online presence, including a webshop, marketplace presence, and creative marketing of your brand.

We want to end this article with a big thank you to Jesper Ravn from Adjutant for his valuable insights on this topic. We hope that you found them just as interesting as we did!

If you require any help launching your brand on Zalando or optimizing your already existing presence on the platform, then we highly recommend reaching out to Jesper & Adjutant.