Zalando Launches ZEOS Fulfill...

Zalando Launches ZEOS Fulfillment Solution to Unlock Profitability and Efficiency for Retailers

Oct 24, 2023
Zalando Launches ZEOS Fulfillment Solution to Unlock Profitability and Efficiency for Retailers

(Image Source: Mika Baumeister, Unsplash)

In an endeavor spanning over a decade and a half, Zalando has dedicated substantial resources to foster its technological and logistical prowess, the pillars underpinning its remarkable success. Now, Zalando is unveiling the ZEOS brand, an abbreviation of "Zalando E-commerce Operating System," with the aim of forging an operating system tailor-made for the fashion and lifestyle industry.

This innovation is set to empower brands and retailers to streamline their multi-channel businesses across Europe through a unified platform. Following the successful pilot of a multi-channel fulfillment solution last year, it is now rebranded as ZEOS Fulfillment. In this article, we delve into the mechanics behind ZEOS and the manifold advantages it offers to fashion and lifestyle brands and retailers.

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Addressing Partner Challenges

Stepping into the European online marketplace as a fashion brand or retailer is fraught with myriad challenges, especially the intricacies of meeting distinct consumer expectations. Managing various sales channels while satisfying platform-specific demands such as product imagery and delivery commitments is no small feat. Furthermore, navigating relationships with local carriers adds another layer of complexity, not to mention the substantial investments required in logistics.

In recognition of these challenges, Zalando embarked on a journey to unlock its capabilities through Zalando Logistics Solutions, which encompasses fulfillment, shipping, and returns services. Through these offerings, Zalando opens its logistics expertise and infrastructure to partners selling on its platform, enabling them to focus on their core competencies in the fashion and lifestyle sector. To date, over 1,000 partners leverage these Logistics Solutions, serving 23 European markets and handling nearly 380 million partner items since their inception in 2017. This experience has endowed Zalando with in-depth knowledge of B2B logistics and the unique requirements of fashion and lifestyle brands and retailers.

Zalando Logistics Solutions has provided partners with the tools necessary to expand quickly across Europe while prioritizing customer needs. However, many brands and retailers expressed a need for a more comprehensive solution. They wanted to use Zalando's network to fulfill orders from other sales channels, particularly dealing with the complexities of managing split inventories when selling on different platforms.

In October 2022, Zalando initiated a pilot program for a multi-channel fulfillment solution in collaboration with select partners. This innovative concept is now formally introduced as ZEOS Fulfillment. The premise is straightforward yet revolutionary: ZEOS takes charge of the intricate logistics processes, enabling brands to devote their full attention to their fashion and lifestyle expertise.

Brands and retailers only need to ship their products to one of Zalando's 12 warehouses, and ZEOS handles the rest. A single integration provides access to a network of over 40 carriers, offering more than 160 localized delivery and return options across 23 European markets. Whether a purchase originates from Zalando, the brand's own online store, or other European e-commerce platforms, ZEOS Fulfillment assures efficient handling and swift dispatch of ordered items.

An Operating System for Fashion and Lifestyle

Zalando is extending the scope of its multi-channel solution, now known as ZEOS Fulfillment. It is making this system accessible not only to existing partners but to all participants in the fashion and lifestyle industry, regardless of their presence on Zalando's platform. ZEOS Fulfillment enables brands and retailers to manage their multi-channel sales through a single stock pool, one carrier integration, and one user interface. This offering is now part of the newly launched brand, ZEOS, with the goal of becoming the e-commerce operating system for fashion and lifestyle in Europe, offering innovative solutions to brands and retailers.

Isabel Rocher, Director Commercial, Operations, and Partner Care at Zalando, noted, "With ZEOS Fulfillment, our end-to-end logistics solution, brands and retailers can reach millions of customers across Europe, via marketplaces and their own e-commerce website. We are excited to help our customers maximize sales and profitability."

Source: Productizing Zalando’s Capabilities: Introducing ZEOS

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