Probably the biggest news to take away from Zalando’s capital markets day was the informal announcement of a “Fulfillment by Zalando” logistics service in the near future similar to the service from Amazon. Already briefly mentioned in the Movmnt presentation (“add-on service opportunities e.g., fulfillment by Zalando”), “Fulfillment by Zalando” got a bit more screen time in the operations presentation. (PDF)
It is an obvious next step in the evolution of Zalando’s platform efforts. I wrote regarding the Fleek app a few days ago about this:
The niche / trendsetter aspect (or the Long Tail) of Fleek is also why the marketplace approach fits right into Fleek’s concept.
Small boutique fashion brands could use Fleek in the future to sell directly with minimum overhead. Zalando will (eventually) provide the same services like ‘fullfillment by Amazon’ for a marketplace like Fleek.
More services are planned:
Given the fact that Zalando’s platform at its core is pretty much a backend/B2B synergies play this is not surprising and makes a lot of sense. Essentially everything a small fashion shop (brand or merchant) may need help with is something Zalando at least considers offering.
Zalando’s platform vision is more or less to become an infrastructure provider for the fashion industry.
For this to work within all the European markets Zalando operates in the company needs a more decentralized logistics infrastructure. The company is planning additional warehouses and more ‘marketplace models’ (whatever that means) until 2020.
- Capital Markets Day ’16: Zalando’s Strategy Behind Movmnt
- Capital Markets Day ’16: Zalando sees Itself as the Spotify of Fashion
- Zalando gives insights into the company’s strategy
- Zalando’s Logistics Infrastructure Becomes a Little Less Centralized
- How and Why Zalando is Making Return Shipments Easier
- Bloomberg: “Global Supply Chain by Amazon” Planned To Start This Year, To Compete With UPS, DHL
- Prime Dynamics: Merchant Increased Sales by 20 Percent with Seller Fulfilled Prime