Zalando, one of Germany’s largest online retailers, continues to boost its gross merchandise value (GMV) through strategic B2B expansion.
For its fiscal Q3 ending Sept. 30, Zalando reported a total GMV of €3.845 billion (approximately $4.3 billion USD). That’s a 7.8% increase compared to €3.209 billion ($4.181 billion USD) in Q3 2023.
Group revenue also saw year-over-year growth, reaching €2.643 billion ($2.958 billion USD). That’s up 3.4% from €2.556 billion ($2.860 billion USD) in Q2 2023. Net income surged to €95.6 million ($107.11 million USD), a notable jump from €56.6 million ($63.34 million USD) in the prior year.
Zalando SE ranks No. 5 in Digital Commerce 360’s Europe Database, which lists the region’s 500 largest online retailers by annual web sales. Digital Commerce 360 categorizes it as an Apparel & Accessories retailer in the database.
Strong Zalando B2B performance in Q3
Zalando’s B2B segment outpaced the growth of its overall GMV.
In Q3, Zalando B2B GMV rose by 11.1% year over year to €239.7 million ($262.08 million USD). That’s up from €215.8 million ($237.26 million USD) in Q3 2023. This growth rate is more than three times that of Zalando’s total GMV during the same period.
“In Q3, the B2B business continued its trajectory of double-digit revenue growth. With an 11.1% increase, it significantly outperformed the group’s overall revenue growth,” said CFO Sandra Dembeck during an earnings call. “As in previous quarters, this growth was primarily driven by our sales fulfillment services and the more mature Zalando Fulfillment Solutions (ZFS) business.”
Zalando Fulfillment Solutions (ZFS) is the company’s end-to-end logistics program that supports its B2B partners with streamlined operation.
- ZEOS Expansion: Zalando’s ZEOS platform added ASOS as a recent sales channel in Q3, further strengthening its position in the market.
- Platform integration: ZEOS now supports order fulfillment across nine major ecommerce platforms and brand-owned web stores.
- Operational backbone: Over the past 15 years, Zalando has developed a robust logistics and technology infrastructure tailored to the unique needs of the fashion and lifestyle sectors. This operational expertise is central to the success of ZEOS and its B2B initiatives.
As Zalando continues to innovate and expand its B2B services, it remains well-positioned to capitalize on its growing presence in the fashion and ecommerce markets, the company says.
Check back for more earnings reports. Click here to read last quarter‘s article on Zalando B2B GMV and overall earnings.
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