Productizing Zalando’s Capabilities: Introducing ZEOS

Over the past 15 years, Zalando has heavily invested in building key capabilities that power both customer experience and platform business – among them technology and logistics, the key enablers for the company’s success. Now, Zalando is launching the ZEOS brand (short for Zalando E-commerce Operating System), aiming to build an operating system for the fashion and lifestyle industry that enables brands and retailers to manage their multi-channel business across Europe within one unified platform. Last year, Zalando successfully piloted a multi-channel fulfillment solution, which is moving under the new brand and will be called ZEOS Fulfillment from now on. In this article, we explain the mechanics behind it and how fashion and lifestyle brands and retailers can benefit from it.

Solving Partner Challenges

Stepping into Europe's online market as a fashion brand or retailer presents a labyrinth of challenges, especially when it comes to meeting the different expectations of consumers. Balancing multiple sales channels while meeting distinct platform demands such as product imagery and delivery promises is a daunting task. Navigating relationships with local carriers adds another layer of complexity, not to mention the significant investments for logistics.

Recognizing these hurdles, Zalando has started the journey to unlock its capabilities with the Zalando Logistics Solutions, meaning fulfillment, shipping and returns services. With these, Zalando made its logistics know-how and infrastructure available to partners that sell via the platform, so they do not have to be concerned with logistics issues, but can concentrate fully on their core competence in the fashion and lifestyle business. Today, over 1,000 partners are already using the Logistics Solutions, with 23 European markets currently being served. By handling almost 380 million partner items since launching the services in 2017, Zalando has not only learned the ins and outs of B2B logistics but also the specific needs of fashion and lifestyle brands and retailers.  

Unlocking Profitability and Efficiency: Serving Multiple Sales Channels in One Go

With Zalando Logistics Solutions, partners already have tools at hand that enable them to expand quickly across Europe while focusing on their customers’ needs. However, many brands and retailers asked for an extended service and would like to use Zalando’s network to fulfill orders from other sales channels. After all, many of them were searching for a solution for split inventories, because they have to divide their stock when selling via different sales channels.

In October 2022, Zalando started a pilot for a multi-channel fulfillment solution with selected partners, which will now be launching under a dedicated brand name, ZEOS Fulfillment. The concept is simple yet transformative: ZEOS takes care of the intricate logistics processes, allowing brands to concentrate fully on their fashion and lifestyle business expertise. Brands and retailers only need to ship their goods to Zalando’s network of 12 warehouses, and ZEOS takes care of the rest. One single integration lets them access a pool of over 40 carriers, offering more than 160 localized delivery and return options across 23 European markets. Whether a purchase is made on Zalando, the brand’s own online shop, or even other European shopping platforms, ZEOS Fulfillment guarantees efficient handling and rapid dispatch of ordered items.

Zalando has tested the multi-channel fulfillment solution extensively with selected partner brands in recent months and has gradually rolled it out to more markets and sales channels, including leading European e-commerce platforms. Around 30 brands and retailers such as Pepe Jeans, a brand of AWWG Group, Marks & Spencer and renowned Polish shoes and accessories brand Kazar are already on board.

 “This partnership has not only revolutionized our marketplaces logistics operations, but it has also set the stage for our continued growth and success. We now have the opportunity to expand our offering across different digital sales channels in a simple way, achieving much shorter delivery times. This helps us uphold our commitment to customer service and satisfaction, and reach new digital markets where our current logistics set-up would not have allowed us to reach. We are a company in constant transformation, so we love solutions that are innovative and allow us to be more competitive and agile.” Federica Miselli, Global Digital Business Director at AWWG (Pepe Jeans London, Hackett and Façonnable)

“The truth is that ZEOS’s offering is revolutionary. When we heard about the new multi-channel fulfillment solution we knew we wanted to be a part of it and expand to new marketplaces. We have big ambitions for the upcoming years and are happy to see ZEOS’s roadmap matching them” – Radomir Kiepas, B2B Development Partner at Kazar

An Operating System for Fashion and Lifestyle

With the new name, ZEOS Fulfillment, Zalando is also expanding the scope of the multi-channel solution, making it accessible not only to existing partners but to all players of the fashion and lifestyle industry, regardless of whether they sell their goods via Zalando or not. ZEOS Fulfillment allows brands and retailers to fulfill their multi-channel sales via one stock pool, one carrier integration and one user interface. It will from now on be part of the newly launched brand ZEOS. Leveraging Zalando’s infrastructure, technology, and expertise, the goal is to make ZEOS the ecommerce operating system for fashion and lifestyle in Europe that provides cutting-edge solutions for brands and retailers.

Part of Zalando SE, ZEOS is an independently operating unit which fully focuses on making brands and retailers successful with their ecommerce strategies. Around 350 people work for ZEOS in Berlin and in Stockholm. The Zalando Logistics Solutions, the fulfillment, shipping, and return services for partners selling via Zalando, are still available and remain unchanged.

For further information visit zeos.eu