The OTTO Market Fee Model in Comparison to Other Fee Models
If you are an online retailer faced with the question of which online marketplaces might be worthwhile for you, then the fee structure plays an important role. In this article, we explain the OTTO Market fees. In addition, we show how the OTTO Marketplace compares to other online marketplaces in terms of the commission model.
The fee structure for OTTO Market is in line with an aspect of the company’s philosophy: “Selling shouldn’t be complicated, you should be able to focus completely on your business.” In line with this, the OTTO fee model is particularly simple: it is made up of a monthly basic fee and commission fees.
Trust in the traditional OTTO brand and likewise in the OTTO platform has been growing for years: in 2019, OTTO Market was already the second most popular online store in Germany. At the same time, the competitive pressure is lower than with the market leader Amazon. OTTO Market only opened up to external online retailers some time ago. Nevertheless, OTTO Market offers a high reach and an active customer base. In addition, OTTO Market takes payment processing off the hands of online retailers. So the investment might be worth it for you.
If you decide to enter OTTO Market and you already have your own online store, then you can list your products very easily with the magnalister plugin.
START NOW VIA MAGNALISTER ON OTTO MARKET
Table of Contents
OTTO Fee Structure for Online Merchants
OTTO’s Commission Fees Compared to Other, Large German Online Marketplaces (Amazon, eBay and Kaufland)
Tips and Tricks for Selling on OTTO Market
Conclusion
OTTO Fee Structure for Online Merchants
As mentioned at the beginning, a major advantage of the fee structure at OTTO is that it is very simple compared to other online platforms. There is a monthly basic fee of €39.90 for each merchant (as of December 2021). In comparison: At Amazon, the basic fee can be waived if merchants pay sales fees per item sold instead. On eBay, there are four different stores to choose from with different basic fees and more or less limited functions in each case.
OTTO adds a commission to the basic fee, which varies between 7% and 18% depending on the product category. There are no special fees, which may be incurred in other online marketplaces, for example, for the sale of media, for large offer quantities or for refunds.
The booking of advertising measures is possible – at a cost, of course. For example, banners can be placed externally. Internally products can be displayed higher up in the search results.
OTTO’s Commission Fees Compared to Other, Large German Online Marketplaces (Amazon, eBay and Kaufland)
In most product categories, the commission for sales on OTTO Market is between 12% and 15%. Electronic goods deviate from this, here the commission is 7% to 8%, as well as jewelry with 18%. It is advisable to calculate whether your products offer sufficient margins, taking into account the commission and production costs. Can you estimate at which sales volume the break even point is reached?
To give you a quick overview, we have presented the commissions for the OTTO platform together with those of the online marketplaces Amazon, eBay and Kaufland. Get a first impression of which products would make sense for you to start with – and on which marketplaces.
Here is the formula for calculating the sales volume that will take you from loss to profit:
Sales Volume (X) = Fixed costs (fees + wages + rent, etc.) / (selling price – variable unit cost (variable cost of goods sold + commission))
| Categories | OTTO | Amazon | eBay (mit eBay Shop) | Kaufland |
| Furnishings & Living | 14% | 15% to 200€ 10% from 200€ |
11% to 990€ 2% from 990€ |
12,5% |
| Garden & DIY | 12% | 13% | 11% to 990€ 2% from 990€ |
10%: Tools 10%: Gardening tools 12,5%: Other |
| Fashion & Lifestyle | ||||
| Clothing, Accessories, Suitcases & Bags | 15% | 15% 7% from 45€ (FBA) |
12% to 990€ 2% from 990€ |
12,5% |
| Beauty & Health | 14% | 8% to 10€ 15% from 10€ |
11% to 990€ 2% from 990€ |
12,5% |
| Jewelry | 18% | 20% bis 250€ 5% ab 250€ |
14% to 400€ 2% from 400€ |
12,5% |
| Shoes | 15% | 15% 7% from 45€ (FBA) |
12% to 990€ 2% from 990€ |
12,5% |
| Watches | 14% | 15% to 250€ 5% from 250€ |
14% to 400€ (Wrist-, pocket- and collector watches) 2% from 400€ |
12,5% |
| Sports & Leisure | ||||
| Baby accessories | 15% | 8% to 10€ 15% from 10€ |
11% to 990€ 2% from 990€ |
12,5% |
| Craft & School Supplies | 15% | 15% | 11% to 990€ 2% from 990€ |
12,5% |
| Erotic | 15% | 15% | 11% to 990€ 2% from 990€ |
12,5% |
| Musical instruments | 12% | 12% | 11% to 990€ 2% from 990€ |
12,5% |
| Toys | 14% | 15% | 11% to 990€ 2% from 990€ |
12,5% |
| Sports Equipment & Outdoor | 15% | 15% | 11% to 990€ 2% from 990€ |
10% |
| Bicycles & Accessories | 15% | 10%: Bicycles 15%: Accessories |
11% to 990€ 2% from 990€ |
10% |
| Technology & Media | ||||
| Office supplies | 15% | 15% | 11% to 990€ 2% from 990€ |
10% |
| Electronics | 7% | 7% | 6,5% to 300€ 2% from 300€ |
10% |
| Home Electronics | 8% | 7% | 6,5% to 300€ 2% from 300€ |
10% |
| Media | 12% | 15% | 9% to 990€ 2% from 990€ |
10% |
| Software | 12% | 15% | N/A | N/A |
| Technology – Accessories | 12% | 15% to 100€ 8% from 100€ |
11% to 200€ 2% from 200€ |
12,5% |
Tips and Tricks for Selling on OTTO Market
Once you have roughly estimated how many products you need to sell to break even, it might be worth taking a quick look at your potential competition at OTTO. Take some time to research how many comparable products are listed at OTTO Market. This is not just about the absolute number of products listed, which you will find directly next to the category name above the search results.
Rather, use the filter function to look for the number of products that are in the same price segment. Then set the number in proportion to the price of the product. The higher the price, the greater the number of competing products. Because: 100 washing machines are tougher competition for a washing machine than 100 T-shirts are for a T-shirt. The optimal niche for you is a product with little competition in the same price segment and a low commission.
At a glance:
- How many products are listed?
- How many products are there in approximately the same price segment?
- How high is the commission in this category?
- Optimal: Little competition with low commission.
If you decide to enter the OTTO Market with the products from your online store, then the question is how you design the connection to the OTTO Marketplace. It is possible to do this with the help of interfaces (APIs). However, with this option requires programming skills and enough time. Or you can commission a developer to program the APIs, which in turn involves higher costs.
The magnalister plugin offers a simple and elegant solution. With it, you can connect the OTTO marketplace – and, if you wish, other marketplaces such as Amazon, eBay or Kaufland – to your online store in a very uncomplicated manner. In this way, you automatically upload your products to the corresponding marketplaces and can manage them centrally via your store backend.
The magnalister plugin at a glance:
- Product upload: Upload articles to marketplaces
- Price matching: transmit prices fully automated or individually (per marketplace)
- Synchronize stock levels: Always up-to-date stock levels between store and marketplaces
- Automatic order import: Import and manage marketplace orders
- Attribute matching: Match product variants and features with marketplace attributes
- Order status matching: transmit order status (e.g. “shipped” or “cancelled”) to marketplaces
- Invoice upload: Generate invoices directly from the webshop or via magnalister and transmit them to the marketplace
- Interface individualization: customize the plugin according to your own wishes using hook points
Conclusion
There is a lot to be said for joining the OTTO marketplace as an online retailer; among other things, the trust of customers in the OTTO brand and the annually increasing turnover. By knowing the fee structure, with a first simple market research and by comparing the different commissions you will have an idea where you could place your products promisingly. If you have decided to enter the OTTO Market: Congratulations!
We have described how to register for OTTO Market in another article. Connecting your own online store to the OTTO Shop is particularly comfortable with the help of the magnalister plugin – you don’t have to be a developer or hire a developer to do it. You continue to manage your products centrally in your webshop and start at OTTO.market at the same time and, if you wish, also at other marketplaces.
What’s new is the ROOKIE plan: With this plan you can now even try out the magnalister plugin on the OTTO marketplace for an unlimited period of time, with a limited number of products. If you have any questions, the competent magnalister support will be happy to assist you.
During the free trial or with the ROOKIE plan, you are also entitled to an introduction to the magnalister tool as part of a free on-screen training. Simply make an appointment for this.
