OTTO is adjusting its conditions: New tiered commissions and increased basic fee

From August 1, 2024, OTTO will adjust its conditions, which could have significant effects on many retailers. The monthly basic fee rises from 39.90€ to 99.90€, and the commissions in certain product groups are also adjusted.

Tier commissions and target group differentiation

From October 2024, OTTO will introduce a graduated commission for selected groups. In the fashion segment in particular, commissions are differentiated according to target groups. Discounted commissions are planned for sustainable products in order to create incentives for high-quality and environmentally friendly product ranges.

Background to the changes

According to OTTO, the adjustments are a response to a trend that has led to cheaper, less high-quality and unsustainable products on the market since 2022. This development has led to critical feedback from customers, and OTTO wants to set a clear focus on quality and sustainability with the new conditions.

Critical assessment

However, the new terms of use, which will be sent out by June 26, 2024, also pose challenges. In the current market situation, the increased basic fee could make the calculation more difficult for retailers and possibly mean that selling on OTTO is no longer worthwhile. Retailers should think carefully about how to react to these changes and adjust their pricing strategies.

conclusion

OTTO's adjustments to the conditions are a clear step towards quality and sustainability, but they also pose a challenge for many retailers. It remains to be seen how the new tiered commissions and the increased basic fee will affect buying behavior and offers on the OTTO marketplace.

It is important for traders to prepare for the changes in good time and adapt their strategies accordingly.

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