The Otto Group has ceased its operations in the Netherlands after more than 40 years. Despite significant brand recognition and a long business history, Otto was unable to make its online retail business sustainably profitable there. The main reason for the withdrawal is the lack of establishing a marketplace model, which has proven crucial for success in international e-commerce. In contrast to competitors such as Amazon and BOL.nl, who have successfully established their platforms, Otto fell short of expectations.
What do sellers need to consider?
Reconsider multi-channel strategy: Otto’s withdrawal shows that lacking a marketplace model is a decisive disadvantage in international e-commerce. One’s own channel strategy should be aligned with platforms having a sustainable marketplace model.
Assess market opportunities by country: Otto’s exit from the Netherlands could free up market share to be taken up by other platforms such as BOL.nl or Amazon.nl.
Plan internationalization carefully: Expanding into new markets requires a viable platform strategy and sufficient brand awareness before making major investments.
