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Otto introduces tiered commissions for retailers on its marketplace
Source: Mintel 19-08-2024

Germany 19-08-2024

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Otto is introducing tiered commissions for selected categories on its marketplace. The adjustments, effective from 1st October, are based on both the product category and the sales price of the products, as well as the parent company. The aim of the new commission system is to increase the number of high-quality products on the marketplace. Retailers with high-priced products will be the main beneficiaries. For example, in the clothing category, nothing will change for retailers offering clothing priced between €25 and €50, as the fee will remain at 16%, while products costing less than €25 will be charged a commission of 17% rather than 16% as previously. Clothing between €50 and €75 will be charged a commission of 15%, and clothing items costing more than €75 will be charged a commission of 14%.

No adjustments are made in the accessories, shoes, suitcases, and bags segments, with them being charged a commission of 15%.