Under the general trend that cross-border e-commerce can only develop in the long run with multi-channel layout and multi-platform operation, many sellers are questioning that apart from the popular platforms such as Amazon, eBay, etc., which other platforms should they choose to operate? Especially in the European market, there are so many different types of platforms that you don't really know how to choose ......
Today, we would like to introduce OTTO, the largest local e-commerce platform in Europe and Germany, to all cross-border e-commerce merchants.
The OTTO Group is a global retail and services group of companies with 123 subsidiaries in more than 30 countries, a global workforce of approximately 43,000 employees and global revenues in excess of RMB 100 billion.
Otto Group is a leading provider of e-commerce solutions and services in Germany, ranked second in the global integrated B2C rankings, and Europe's largest online retail channel for apparel, clothing and lifestyle products.
E-commerce is the core business segment of the OTTO Group and covers all important e-commerce segments in Germany.
Compared to most emerging platforms, OTTO has sufficient strength.
The market is big enough
The German e-commerce market has always been one of the "big boys" in Europe amongst the many developed countries, it is mature enough and growing slowly. It is a very attractive e-commerce market with a high number of e-commerce consumers, a high Internet penetration rate, and a high average number of online shoppers, etc. It is also an e-commerce market with high purchasing and spending power, and a good reputation. It is also a country with high purchasing and spending power and good logistics and other infrastructure.
With such a large consumer market, it is only natural that there is a huge amount of traffic. in 2021, Amazon sales ranked first in the United States with $275 billion, and second in Germany with €31.6 billion. In terms of the growth ratio of Amazon's sales by site, Germany is ranked first and has the best performance. By extension, the German market has a lot of potential.
As the largest local e-commerce platform in Germany, OTTO is naturally enjoying this market dividend.
Low competitive pressure
OTTO's standards for merchants are relatively stringent, and OTTO will not accept non-compliance. Merchants stationed in the OTTO platform, not only to meet the localization of the rules and standards, but also to meet some of the quality standards specifically for its own group of requirements, including the requirements of the liability of claims. The number of sellers on the platform itself is small, and Chinese sellers are few and far between, so it can be called a new blue ocean!
Own logistics
Currently, only the self-shipping mode is supported. All merchants are required to ship from Germany to their buyers (self shipment from their own warehouse in Germany or from a German overseas warehouse). Deliveries can be made via DHL, Hermes or GLS.
OTTO Group's logistics service (Hermes) can cover from the business end to the logistics end, monthly delivery capacity of more than 1 million pieces, with 12 major warehouses, as well as 8,000 employees, stationed in the seller is equivalent to having an overseas warehouse in Germany.
Being an early seller on the OTTO platform is an added advantage:
Have closer and more effective communication with the platform as well as more timely help and services.
Feedback and voice are valued more
A relatively less competitive environment helps the product to get more exposure and display.
Early sellers will be more likely to get buyers' favor.
More opportunities to participate in marketing, lead generation, and other activities.
🔻 Platform product categories:
Electronics, Home, Outdoor, Clothing, Footwear, Electrical Appliances, Small Household Appliances, Office Supplies
The three most popular categories: apparel, home furnishings, and 3C products.
How do third-party sellers join OTTO? Below are the specific requirements to join OTTO:
Currently, the focus categories are home furnishing, electronics, home textiles, home appliances, sports and outdoor, tools, and apparel, which will be the platform's key categories in 2023. At the same time, the platform will also require sellers to sign a series of advertising and promotion agreements and KN service agreements.
The cost of the platform is mainly divided into three parts: monthly rent, commission, and dedicated account manager service fee. Commission is between 7%-18%, most of them are 7%-15%, 18% commission rate may only be available for jewelry. The monthly rent of the store is 39.9 Euro, and the exclusive account manager fee is RMB880-3980.
Platform for all sellers will have a one-to-one account manager to deal with, covering the stationing, online, the latter part of the operation, training, product selection, etc., all by the dedicated account manager to deal with. So sellers don't have to worry about how to operate if they join OTTO. The platform will also charge different fees according to the different GMV of the sellers.
Below are the payment and settlement methods of the platform, as well as the return process:
In 2023, OTTO will open a limited number of 75 places for Chinese sellers, and will only recruit domestic top sellers and top brands, or better quality sellers.
The following is the specific process of the platform's on-boarding:
Many sellers will be stuck for a long time when they do the video certification, we require that the legal person must have the ability to listen and speak English or German to do this video certification. Many cross-border sellers are not very strong in English, so they have done it dozens of times and failed. So if you are registering a German company, you must pay attention to this point when choosing a legal person.
Other points to note are as follows:
In addition, the OTTO platform is very strict on sellers' violations. Once a seller has violated the rules three times, he or she may be at risk of being taken offline, and the following is a list of problems that often occur among sellers:
What are the advantages of registering a German company
1. Incorporating a company in Germany can quickly enhance the corporate brand image.
Germany has a high international legal status and is protected by the European Union. Cross-border sellers can utilize the brand image of Germany to compete for domestic and international markets.
2. Non-German citizens are free to operate within or outside the country after incorporating a German company.
You can open a bank account in Hong Kong or abroad to facilitate the flow of funds.
3、Can use the name of the German company to buy and sell properties and conduct international trade.
Freedom of entry and exit of funds, high credibility
4. Incorporating a German company keeps corporate taxes at a minimum level.
5、After three years of good business operation in Germany, the company can also be exchanged for permanent residence in Germany.
The whole family can enjoy the highest welfare benefits in Germany. If you want to settle down in Germany, registering a German company first is also a good option. Whether you are investing abroad or engaging in cross-border e-commerce, setting up a German company can help you.
German company registration and subsequent maintenance matters, there are many details to pay attention to and avoid risks, it is recommended to appoint a professional agent to help deal with the green circle focuses on cross-border enterprises to provide one-stop services, professional team, professional accountants, so that you cross-border sea is no longer difficult!
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