💰 Otto’s Fee Hike
Starting August 1, trading on Otto’s marketplace will cost more for partners. The basic fee will increase from $43.30 to $108 per month. Commissions for product categories will also rise by 1 to 8%. Technology accessories fees will more than double, and hardware store segment sales fees will rise from 7% to 13%. Adjustments also cover clothing, mattresses, bed accessories, and jewelry. Information on these changes is available via Otto’s newsletter and seller portal, and personal discussions with partners are ongoing.
📅 Upcoming Adjustments
Further fee increases are planned for October, with selected commission groups seeing a graduated commission structure. Otto also plans to differentiate commissions by target group next year, especially in the fashion sector. Reduced commissions for sustainable products are also planned, aligning with Otto’s goal to promote high-quality, sustainable product ranges on their platform.
📜 Rationale for Changes
In a letter to retailers, Otto cited market trends as the reason for the fee changes. Since 2022, there has been an increase in low-quality, non-sustainable products. Otto aims to incentivize high-quality, sustainable products through these commission adjustments. "We want to create a stronger incentive for high-quality, sustainable product ranges," Otto explained.
📈 Retailer Reactions
The fee hike has prompted varied responses from retailers. Some consider ending their partnerships, while others plan to raise their product prices on Otto. Retailers have criticized Otto’s high return rates and lack of sales notifications. Some find the basic fee increase unjustified, while others are more concerned about the rising commissions. Otto previously increased fees in February, particularly for household electronics, adapting to market levels.
How will Otto’s fee changes impact your shopping habits?
