Should your brand appear on increasingly specialised marketplaces?

 

Online marketplaces can be grouped into two categories: all-around platforms like Amazon and eBay and specialised markets like Zalando. But lately, e-Commerce professionals have spotted a new trend in the world of online fashion sales which can be summed up as the battle of quantity vs quality.

 

Marketplaces like Temu and SHEIN with their vast offering of fast-fashion products definitely belong to the camp of quantity. In the other corner, thanks to the rise of the eco-conscious consumption movement, Zalando and Trendyol are offering a better curated, more durable, higher quality selection of goods.

 

 

Curated fashion products for a more sustainable commerce

While Zalando and Trendyol work with smaller brands and third party sellers, e-Commerce analysts have noted that both marketplaces have reduced the number of their business partners and now offer fewer products to customers than before.

 

This seems to be a conscious choice and a bold move towards a better-curated selection of higher-quality products on both marketplaces. With the reduction of their product listings, these platforms protect their clients from the sensory overload and frustration that comes with scrolling through endless pages of listings - and many of them display very similar, or even the exact same products.

 

 

Screenshot of amazon.de displaying random search results to the term “women’s tops”

 

 

Due to the reduction of offers, these platforms are now able to create a more exclusive shopping experience for their customers, and a clean marketplace for their selling partners.

 

Find out how we can clean any marketplace for your brand!

 

This elevates the image of the chosen few brands and sellers, not to mention that of the marketplace as a whole. No wonder that Zalando has successfully opened its platform towards luxury brands as well.

 

Such a repositioning obviously affects the clientele of Zalando. The carefully curated, higher quality and more expensive products attract more eco-conscious consumers with thicker wallets - typically above the age of 30. Younger people with less spending power, on the other hand, still seem to favour the cheaper and extremely trendy offering of fast-fashion platforms.

 

 

Related topics

Popular online fashion marketplaces

 

Trendyol strengthens its presence in Europe

 

Popular niche online marketplaces from around the globe

 

 

The downside for smaller brands and retailers

The above sounds great as long as you’re one of the chosen brands or sellers. But what can smaller companies do that find themselves cut from Zalando or Trendyol simply due to their size?

 

Luckily, the world of e-Commerce offers many other opportunities besides these two platforms. You can try selling on other marketplaces or opening your own webshop. This latter provides the added benefit of direct contact with your customers, which allows you to learn more about them and improve your brand.

 

As Zalando’s example shows, e-Commerce is a fast-changing environment where you’re best served by flexible, adaptable sales strategies. You may find yourself short of a sales channel if your platform decides to change directions, which means it’s better to have backup plans and multiple channels at the ready.

 

Find out all about going omnichannel!

 

 

Online brand protection in the context of specialisation

From an online brand protection point of view, specialised marketplaces like Zalando are quite beneficial for brands.

 

“The heightened quality control and reduced number of sellers make it much harder for counterfeiters and other fraudsters to make it onto the platform. However, the increased exclusivity ensures that any fraudsters who still appear on the marketplace are easier to spot.

 

Thanks to the reduced number of sellers, we can better target our monitoring efforts, which results in an even faster service. This also means a more efficient enforcement procedure and much quicker action against potential IP infringements.”

 

• Felix, Head of Operations at globaleyez

 

In addition, the expertly curated collection of brands and sellers contributes to strengthening your brand’s identity and reputation, ensuring a stronger bond with your customers. This makes it much easier for us to protect your brand against dilution and counterfeiting.

 

Unfortunately, specialised platforms also have a few drawbacks for your brand. The increased visibility you enjoy on Zalando also means that fraudsters can spot your brand much easier and may see an opportunity to make money off your IP rights. If they can’t get onto Zalando, they’ll take their infringing offers to other marketplaces, which makes our monitoring services even more important.

 

When using Zalando or other specialised marketplaces, make sure that you don’t depend on it too much. Overly relying on one sales channel may distort your strategy and could have devastating effects, should you suddenly lose access to that channel. This also highlights the importance of diversified and balanced distribution channels.

 

| When using specialised marketplaces, make sure that you don’t depend on them too much

 

Overall, as online brand protection experts, we believe that specialised marketplaces like Trendyol and Zalando are beneficial for brands. The exclusive feel and the curated offers elevate your reputation and create a clean marketplace for your brand where your product listings can attract loyal and new customers alike.

 

 

Zalando’s luxury strategy

For Zalando, specialisation seems to pay off.  In its 2024 Q3 financial report, the company noted a 5% rise in sales to 2.4 billion euros as well as a rapid growth of active customers to 50.3 million. This is all largely due to the selection of premium and luxury products on the platform.

 

 

Screenshot of https://en.zalando.de/fashion-trends/ displaying Zalando’s curated trend suggestions

 

 

For a company that started as an online trading hub for shoes, this is a big development indeed.

 

Working with a carefully curated set of premium and luxury brands allows Zalando to differentiate itself from SHEIN & Co., attracting an older and wealthier customer base. Catering to this audience also requires Zalando to become more sustainable and switch to eco-friendly operations.

 

Find out all about Zalando’s efforts to sell pre-owned clothing!

 

 

Future prospects for online marketplaces

E-Commerce is a rapidly evolving industry segment which requires brands to be flexible and adaptable. What works today may not cut it tomorrow. However, we can make some observations based on current trends.

 

If the trend of specialisation continues, we may see an increase in niche marketplaces and in some cases, even hyper-specialisation. This would result in the emergence of micro-marketplaces to deal with a very specific product category and/or consumer group.

 

Get to know some interesting niche marketplaces!

 

All this leads to even more personalisation and adaptation to individual consumers’ lifestyles and preferences. Thanks to AI, this extremely personalised customer service wouldn’t break the bank for most brands. Online brand protection can also jump on the AI bandwagon: we can use AI applications for automated quality control and even faster counterfeit detection.

 

Brands and online retailers need to adapt to these new circumstances and customer expectations. You have to develop new strategies for the platform economy, as well as for your eventual presence on specialised marketplaces. New technologies and data analytics can help you with creating highly targeted, successful strategies. When drafting these, bear in mind the importance of customer loyalty and brand experience.

 

| You must develop new strategies for the platform economy and your presence on specialised marketplaces

 

Create a unique brand experience with these platforms, which will elevate your profile and inspire feelings of loyalty and trust within your customers. Loyalty programmes can also contribute to building a community around your brand and products, which will create a sense of belonging in your customers, ensuring their business for a long time.

 

Think of marketplaces as allies in this process. Strengthen your partnership with increased collaboration, e.g. with co-designed product lines or exclusive offers customers can only access on their platform.

 

That said, don’t forget the importance of diversification. A balanced approach between general and specialised marketplaces creates a security net for your brand, ensuring that you’re flexible and adaptable to unforeseen events. This doesn’t mean you have to sell everything everywhere; find out where your target audience shops for specific products, and adapt your selling strategies to their behaviour.  

 

| A balanced approach between general and specialised marketplaces creates a security net for your brand

 

Depending on your size and profile, it may be even worth setting up your own online shop. This will also require you to update your e-Commerce infrastructure, e.g. by operating a fulfilment centre or developing your own shopping app.

 

 

Conclusion

Specialised marketplaces like Zalando and Trendyol are beneficial for brands and online brand protection experts as well, contributing to better brand recognition and a cleaner marketplace. However, that’s only the start of your brand’s IP protection needs.

 

Contact us and learn more about what we can do for your brand’s success!