Zalando

Overview

Zalando SE is Europe’s leading online platform for fashion and lifestyle, headquartered in Berlin, Germany. Founded in 2008 by Robert Gentz and David Schneider as a shoe-focused online shop modeled on Zappos, it has grown into a pan-European ecosystem selling clothing, footwear, accessories and beauty from over 1,500 brands to more than 62 million active customers across roughly 25 European markets. Publicly listed on the Frankfurt Stock Exchange (ticker ZAL) since 2014, Zalando operates both a business-to-consumer (B2C) storefront and a business-to-business (B2B) technology and logistics arm.

What they’re known for

Zalando is distinctively known for its transition from a pure first-party (1P) online retailer into a hybrid open marketplace. Two programs define this angle:

• Partner Program — brands sell directly to consumers on Zalando’s platform via the zDirect portal, keeping control over assortment, pricing and brand representation while Zalando provides reach, payments and optional fulfillment.
• Connected Retail — brick-and-mortar stores connect their in-store stock to Zalando and fulfill online orders locally, turning physical inventory into online sales. It operates across 13 European countries and is credited with lifting store productivity by up to 60% per square meter.

Zalando is also known for its customer-friendly signatures (free delivery, 100-day returns) and its “Free to Be” brand positioning around inclusivity and personalization.

History

• 2008 — Founded in Berlin by Robert Gentz and David Schneider as an online shoe retailer.
• 2010 — Becomes the online shoe market leader in Germany and expands into broader fashion.
• 2011–2013 — Rapid expansion into new European markets with localized languages, payments and logistics.
• 2014 — IPO on the Frankfurt Stock Exchange (Prime Standard) at EUR 21.50/share, valuing the company at ~EUR 4.9 billion.
• 2015–2018 — Shifts from a pure inventory model toward a platform, launching the Partner Program and, in 2018, the Connected Retail strategy.
• 2019–present — “Free to Be” repositioning, AI-powered styling and sizing personalization.
• 2025 — Completes acquisition of rival ABOUT YOU (91.45% of shares, ~EUR 1.13 billion), with the final squeeze-out and delisting concluded in November 2025.

Business model

Zalando runs a hybrid retail model combining first-party (1P) and third-party (3P) sales:

• First-party (1P): Zalando buys inventory and sells it directly. In FY2025, 1P sales contributed roughly 73% of total GMV.
• Third-party (3P) marketplace: Via the Partner Program and Connected Retail, brands and retailers sell directly to customers and Zalando earns a commission. 3P GMV accounted for about 27% of total GMV in FY2025. The selling commission typically ranges from 5% to 25% depending on product type and price, plus a nominal fixed monthly fee, with commission charged only on completed (non-returned) sales.
• B2B / infrastructure: A modular operating system — ZEOS (smart logistics), SCAYLE (shop & marketplace software) and Tradebyte (marketplace integration) — serves 1,200+ external merchants and facilitates around EUR 11 billion in GMV. Retail Media (advertising) is a fast-growing revenue stream, up 42.4% in 2025.

Why it succeeded

Zalando’s success rests on several reinforcing advantages, drawn from the sources below:

• Early trust-building — free delivery and a 100-day return policy overcame European consumers’ initial reluctance to buy fashion online, mirroring the Zappos playbook the founders admired.
• Localization at scale — aggressive 2011–2013 expansion with market-specific languages, payment methods and logistics let it dominate before pan-European rivals matured (Latana).
• Platform pivot — moving from a capital-intensive 1P retailer to a hybrid marketplace (Partner Program + Connected Retail) expanded assortment without owning all inventory, and Connected Retail reportedly doubled partner sales within 12 months.
• Infrastructure monetization — turning its own logistics and software into a B2B offering (ZEOS, SCAYLE, Tradebyte) created a second growth engine beyond consumer retail.
• Consolidation — the 2025 ABOUT YOU acquisition removed a direct competitor and targets ~EUR 100 million in annual EBIT synergies, cementing scale in a ~EUR 450 billion European fashion market.

Notable facts

• FY2025 GMV of EUR 17.56 billion (+14.7% YoY) and revenue of EUR 12.35 billion (+16.8% YoY).
• FY2025 adjusted EBIT of EUR 590.7 million (4.8% margin); 62.0 million active customers.
• 1P accounted for ~73% of GMV, 3P marketplace ~27% in 2025.
• B2B revenue reached EUR 1.09 billion in 2025 (+14.6%), with adjusted EBIT more than doubling.
• 2014 IPO valued the company at ~EUR 4.9 billion; ABOUT YOU acquisition (2025) valued at ~EUR 1.13 billion.
• Marketplace commissions typically run 5%–25% of the sale price, charged only on non-returned orders.

Links

Title	URL	Type	Note
Homepage — Zalando Corporate Website	https://corporate.zalando.com/en	official-site	Official corporate site (investor relations, news, partners)
Zalando: Key figures 2025	https://corporate.zalando.com/en/investor-relations/key-figures-2025	report	Official FY2025 GMV, revenue, EBIT figures
Zalando: Annual Report 2025	https://corporate.zalando.com/en/annual-report-2025	report	Full FY2025 annual report (PDF)
Zalando Q2 2025 Results	https://corporate.zalando.com/en/financials/zalando-q2-2025-results	news	Q2 2025 results and AI discovery feed rollout
Zalando and ABOUT YOU complete transaction	https://corporate.zalando.com/en/investor-relations/zalando-and-about-you-successfully-complete-transaction	news	Acquisition of 91.45% of ABOUT YOU (July 2025)
How to sell on Zalando — Partner Program	https://www.koongo.com/blog/how-to-sell-on-zalando-partner-program/	article	Explains zDirect Partner Program and 5–25% commission
How to sell on Zalando Connected Retail	https://www.koongo.com/blog/how-to-sell-on-zalando-connected-retail/	article	Explains Connected Retail model for physical stores
Germany’s Zalando posts strong FY25 results as GMV rises 14.7%	https://www.fibre2fashion.com/news/e-commerce-announcement/germany-s-zalando-posts-strong-fy25-results-as-gmv-rises-14-7--308978-newsdetails.htm	news	FY2025 results summary
Zalando delivers 2025 growth across B2C and B2B	https://www.worldfootwear.com/news/zalando-delivers-2025-growth-across-b2c-and-b2b/11343.html	news	B2C and B2B segment growth detail
Zalando sets final IPO price at EUR 21.5 per share	https://tech.eu/2014/09/29/zalando-final-ipo-price/	news	2014 Frankfurt IPO pricing and valuation
How Zalando Aims To Dominate European Fashion Retail	https://resources.latana.com/post/zalando-deep-dive/	article	Brand-strategy deep dive on Zalando’s three eras