Online retailer Otto hardly expects delivery bottlenecks

Online retailer Otto hardly expects delivery bottlenecks

The Hamburg online retailer Otto hardly expects delivery bottlenecks in the Christmas business despite global logistics problems.

“There will be largely good supplies for Christmas because these goods have been here for a long time,” said the chairman of the Otto divisional board, Marc Opelt, of the German press agency. He does not rule out the possibility that one or the other will be missing from a total of 7.8 million active posts at Christmas. But he does not expect greater difficulties – if at all – until spring. «We can sell everything that is already in our warehouse. But everything that is to come can be difficult under certain circumstances. “

The Federal Association of E-Commerce and Mail Order Germany (BEVH) comes to a similar assessment. Most online retailers had long since filled their warehouses, said a spokesman. “That explains why the supply for the Christmas business continues to appear assured, with the exception of absolutely trendy items.” More than 90 percent of online retailers have bottlenecks, but only a good 20 percent fear that they will not be able to meet the demand to a considerable extent. Game consoles are sometimes difficult to obtain worldwide through all trading channels. “However, the global processes in e-commerce could still make goods accessible if items are no longer available in the local area.”

Because of the imponderables, Opelt did not want to issue a sales forecast for Otto’s fiscal year, which runs until March. “At the moment we are very happy with the business.” Among other things, the clientele has rejuvenated significantly. According to Opelt, growth in the past 365 days for 25 to 34 year olds was around a quarter, and for 18 to 24 year olds it was even around a third. In the 2020/2021 financial year, Otto GmbH & Co. KG, which belongs to the Otto Group, increased its sales by 30 percent to 4.5 billion euros.

Opelt defended the online offer of televisions, washing machines and refrigerators, some of which were poor in energy efficiency. Customers should be able to choose from as wide a range as possible. However, Otto now shows not only the energy consumption, but also the CO2 balance of the devices. In addition, sustainably produced fashion is marked conspicuously. “We try to make all information so transparent that customers can make an informed decision.” The aim is to sell more and more sustainable goods. Already now it should at least be stated that “the cheaper devices are not necessarily those that are bought in large numbers”.

Opelt appealed to customers to choose products as far as possible so that there are no returns in the first place – i.e. not to order sneakers in three different sizes, then choose the right pair and send the rest back. However, Otto is sticking to the free return shipping despite other legal options.

Of course, you could make it as difficult as possible for customers to return the goods, said Opelt. Then maybe one or the other give up. “But then the customer has a product that, in case of doubt, does not fit or does not like.” In addition, that does not throw a good light on the seller. Opelt does not see any major environmental impact from return journeys by the Group’s own logistics company Hermes. “The deliverers are on their way anyway and then take the returns with them.”

The online retailer did not comment on the amount of returned goods and only pointed out that it was six percent less in the past financial year. Most of the textiles and the least furniture and large electrical appliances are sent back. The industry association BEVH assumes that in 2018 – i.e. before the pandemic – 280 million parcels and 487 million articles were returned to retailers. This corresponds to every sixth package delivered and every eighth article ordered.

dpa