Millions of active customers
OTTO, Germany’s largest online store, is continuously working to better understand and meet the needs of its over twelve million active customers in the dynamic e-commerce environment – with considerable success: In the past financial year, OTTO managed to increase total revenue from the marketplace and its own retail (Gross Merchandise Value, GMV) by nine percent to over seven billion euros. OTTO inspires its customers with strong quality products, unique product ranges, diversified services and a clear sustainability strategy.
We off er a lot and focus on our customers.
“Our development curve at OTTO illustrates the importance of viewing our customers as a keystone of our vision and not just understanding their needs,” explains Marc Opelt, Chairman of the OTTO Management Board. “We off er a lot and focus on our customers. They have warmly received the live shopping program and our assembly and connection service for furniture and large kitchen appliances, for example.”
Creating a direct connection to the product, inspiring and establishing direct and personal contact with customers – in the end, it is always about understanding, serving and delighting very diff erent customer groups with their specifi c needs.
This claim is also refl ected in the qualitative expansion of the product range. In addition to our own retail business, it also applies to the online retailer’s growing marketplace, which accounts for around 40 percent of gross merchandise value (GMV). “The following applies for us and our over 6,000 partners: Quality is non-negotiable.
This advantage is particularly persuasive in competition with new rivals. This prompted us last year to conduct a detailed review of the products off ered on our marketplace and make adjustments when we found that a partner’s quality standards diff ered from ours,” says Opelt.
Sales of marketplace goods rose by 24 percent last year, which demonstrates that customers appreciate the selection of higher-quality products and prestigious brands. OTTO managed to increase the number of active customers by four percent to 12.2 million last year.
By engaging in this process, OTTO proves on a daily basis that economic success and value-oriented action can go hand in hand. A value proposition that creates incentives to buy and also strengthens the relationship with customers.
Millions of active customers
Of particular concern is the introduction of innovative concepts that reduce packaging waste: Since the beginning of 2024, all shipping bags at OTTO have been made from 100 percent recycled “wild plastic”, which is obtained from plastic discarded in the environment. The bags feature a QR code that customers can use to trace the origin of the plastic. OTTO is collaborating with the Traceless Materials start-up to develop biodegradable, plastic-free packaging that will be tested in practice in the year ahead.
At least 80 percent FSC-certified recycled cardboard in shipping boxes has long been standard at OTTO. But there is something that’s new: To reduce the use of waste paper, all shipping boxes should maximize the content of Paludi biomass, which consists of raw materials from moorland plants. The term Paludi refers to the use of wet peatland sites for agricultural and forestry purposes.
Preserving intact peatlands and rewetting drained peatlands for sustainable use is important for climate protection and the economy. Aside from the positive climate impact, OTTO is also promoting new, near-natural peatland habitats to increase biodiversity and is hence creating incentives for farmers to rewet drained peatlands. To transform the Paludi biomass into a stable packaging material, it is mixed with paper fibers that are obtained from responsible and resource-conserving forestry and other controlled sources.
In an initial test in 2024, OTTO delivered 100,000 shipping boxes consisting of 90 percent recycled paper and 10 percent Paludi fresh fibers to its customers. The test was very successful: The boxes fulfilled all expectations in regard to stability in logistics and proved resistant to the effects of the weather. A survey revealed that customers were equally satisfied with the quality. The aim now is to continue the rollout: By 2028, all OTTO shipping boxes will contain the highest possible proportion of Paludi biomass.
Taking responsibility along the entire value chain – whether socially, environmentally or digitally – has been an integral part of the company’s identity for almost four decades. This obligation will also remain non-negotiable moving forward.
In the past financial year, for example, the proportion of air freight fell to below two percent, while the proportion of biofuels used in shipping increased to 25 percent. OTTO intends to further increase the proportion of products with a higher sustainability standard over the next three years, particularly in the furniture and home & decoration ranges. This is prompted mainly by the switch to recycled fibers. OTTO has also been using FSC®-certified wood for many years. Last year, the proportion in own and licensed brands was 98 percent – and the aim is to increase this number to 100 percent by 2028.
© picture credits OTTO, Lucas Treise/ BioFilm/ Michael Succow Stiftung