OTTO generates approximately 6.3 billion euros in revenue in 2022
OTTO continues to successfully expand its marketplace with over 5000 partners
In 2022, 11.3 million active customers shopped at OTTO at a rate similar to the previous year, but they placed significantly smaller orders. “Due to rising energy and food prices, consumers have less money in their wallets. As a result, they are avoiding impulse purchases, opting for non-branded products more frequently, and postponing larger purchase decisions. However, on the positive side, we have lost hardly any customers. They may be shopping differently, but they remain loyal to OTTO”, explained Marc Opelt, Chairman of the Divisional Board at OTTO.
Despite the uncertain market developments, the company is approaching the upcoming fiscal year with cautious optimism in light of the prospering marketplace, positive growth in the Advertising Services sector, and successful sustainability efforts. The further development of the platform, including the necessary technical upgrades, is scheduled to be carried out as planned. “Despite the challenging business environment in recent months, we have been focused on our transformation and have made significant investments in IT and tech infrastructure. We are also proud of our achievements in the sustainability field”, stated Marc Opelt.
Sustainability remains a constant focus for OTTO
With approximately 626,000 sustainable products in the store,OTTO has reached a new milestone. The goal is to become the platform with the largest sustainable product range in Germany. By 2025, the Hamburg-based company aims to expand the number of such products on otto.de to over one million. “We aspire to be climate-neutral in our own business processes by 2030 and commit to achieving science-based targets. These stricter climate protection requirements are in line with the 1.5 degree target”, says Marc Opelt. “To do this, we want to avoid or at least reduce CO2 emissions. This applies to parcel transport in cities, where Hermes is planning to make its deliveries completely electric in Hamburg in 2023, for example. The same goes for our maritime transport: starting this year, we are reducing the proportion of diesel fuel in sea freight by 15 percent – in favour of biofuel. For this, we are working closely with GoodShipping, a biofuel agency based in Rotterdam.”
New business field of Advertising Services sees strong growth
The development of OTTO Advertising has been particularly promising. This department creates advertising solutions for the retailer OTTO and its suppliers, as well as for marketplace partners and media agencies. Even companies that do not sell their products on OTTO, such as automobile manufacturers and tour operators, can present their offers to over 11 million OTTO customers with enormous reach. For this purpose, OTTO creates its own advertising solutions throughout the entire purchasing process. For example, customers may see an advertisement for a Samsung TV at OTTO on digital displays at train stations or in the city centre of Hamburg, on external websites or directly at otto.de and in the app – both as display advertising and in the product list as a sponsored product. This type of advertising is clearly in its growth phase: in 2025, the retail media market in the USA will be larger than the traditional TV business for the first time. In 2026, retail media will also surpass TV spending in Europe. (Source: IAB Europe).
Employees wanted
To continue providing customers with the best platform experience, we are still looking for new employees: currently there are around 100 vacancies, with the majority of them requiring expertise in the tech sector. Today, one in three jobs at OTTO is already a tech job, and this number is expected to increase. OTTO also stands out with a 29 percent representation of women in tech positions, significantly exceeding the German national average of 18 percent.