German ecommerce giant Otto is increasing the seller fees on its marketplace. The basic fee for third party sellers will rise from 39.9 euros per month to 99.9 euros. According to the platform, the change is caused by the fact that many partner sellers have added low-quality products to the marketplace in the past.
In February, the online marketplace already increased the commission on household electronics, from 8 to 15 percent. Now, Otto is announcing a significant increase in its basic fee. Additionally, it will also increase commissions for product categories.
New commissions structure
Commissions on the product category technology accessories will more than double. Several products in the hardware store category will rise from 7 to 13 percent. And commissions on clothing, mattresses and bed accessories, and jewelry will also increase. The new fees will be in effect from August 1st. Otto is also using new terms of use, which will apply from June 26th.
Another fee increase is planned in October
The platform has also announced that it will increase its fees in October again. Some commission groups will then also be differentiated with a graduated commission. And next year, the company is planning to differentiate fees according to target groups. This will be particularly relevant in the fashion sector. At the same time, it is planning lower commissions for sustainable products.
Complaints from sellers
“Since 2022, we have observed a trend towards offering increasingly cheaper, low-quality and non-sustainable product ranges on the market. This development also affects what we offer on our platform”, said a spokesperson of Otto. “Unfortunately, Otto is now increasingly offering marketplace products that do not meet our quality standards or customer expectations, which is reflected in a large number of critical feedback.”
‘Otto wants to make sure that its product range is of high-quality and meets sustainable criteria’
With the higher commissions, Otto wants make sure that its product range will be of high quality and meet sustainable criteria. However, many partner sellers have turned to an online forum to voice their concerns. Some are considering ending their partnerships, while others will adjust their product prices accordingly.
In April, Otto announced that it was preparing to open up the marketplace to European sellers. Yet, many sellers on the forum are saying that the increase in fees shows that it is not a welcoming platform. Additionally, they have complaints about high return rates and a lack of notifications about sales.