Fashion Marketplaces E-book

E-commerce and fashion

Why sell on fashion marketplaces?

Best practices for fashion e-commerce and marketplace strategies

What’s new in fashion marketplace marketing?

Why e-commerce is the future of the fashion market

E-commerce and fashion –a global vision

The European online fashion market European country comparison

Further Amazon fashion marketplace analysis

Which are the best-selling products on Amazon?

What influences online fashion sales?

Why sell on fashion marketplaces?

Fashion marketplaces: growth driver & impact of COVID-19

How the supply chain crisis has affected the fashion industry

The benefits of selling on fashion marketplaces

The influence of social shopping on marketplaces

Best practices for fashion e-commerce and marketplace strategies

Designing and implementing the correct sales strategy

How to improve your presence on fashion marketplaces

What’s new in fashion marketplace marketing?

The trend toward live commerce

The power of social media

The growth of retail media for fashion

User-generated content (UGC) for fashion marketplaces

How the metaverse is changing fashion marketing

Other ways to boost marketplace sales

01 E-commerce and fashion –a global vision

Global fashion influences all ages, sexes and cultures. The desire to look good and stand out from the crowd is a growing trend as designer labels become more popular and accessible through online marketplaces.

With online fashion expected to grow substantially over the next few years, this is a market that is currently, and will continue to be extremely competitive. For example, the consumer can buy their Adidas sweatshirt on Amazon or Zalando or a pair of Gucci sunglasses on Yoox. As more online fashion marketplaces offer more brands and day-to-day clothing there is potential for major expansion in this sector.

The European online fashion market

Online fashion in Europe is a growing market, in 2021, fashion had a 18% share of the e-commerce market and this will grow up to 27% in 2025.

The total fashion market in 2021 reached €475bn and is expected to grow by 10% by 2025 to €525bn. The online part was 25% in 2021 and will grow up to 50% by 2025 to €175bn.

By 2030, the online share of fashion is expected to be more than 45%, meaning that there will be a 30% market share shift from offline to online in 15 years. This section mainly focuses on the European market, and in particular looks at Amazon’s representation in online fashion.

Worth noting is online fashion sales on Amazon US, including third-party retailer sales, were estimated to be 34.5% as of March 20212 According to a survey by Statista, the three most popular reasons US Amazon customers purchase clothing and footwear from this marketplace are:

However, Amazon is not necessarily the first-place people choose to shop for online fashion in Europe, particularly with the entry of competitors such as the French retailer La Redoute and German-based BonPrix, who are perceived to be more specialist fashion retailers.

Another interesting point is that several marketplaces are non-specialist and offer other items. For example, La Redoute and Spartoo sell homeware and decor items. This is an additional sales opportunity for marketplaces; however, businesses must be careful not to dilute their offer.

Amazon was a leading market player in online fashion sales in 2019 due to the COVID-19 pandemic and Amazon’s ability for home delivery during lockdowns. However, since then Amazon has seen a drop in popularity for fashion purchasing as other marketplaces launch and grow.

European country comparison

Returning to the European online fashion market, the table below gives the projected revenue from Statista by country for 2022-2025. The 5 main online fashion purchasing countries have been selected.

Each country demonstrates a growing market for online fashion sales. In terms of Amazon, the next table shows a comparison of the 5 most popular brands by the four key European countries for Amazon online fashion between 2020-2021 (ranking not available for Spain).

This analysis demonstrates that each country has its favourite brands and loyalty. It also shows that the big brands have a place next to smaller, unknown brands. However, it should be remembered that Amazon does not offer as many ‘on-trend’ fashion brands as specialist marketplaces such as the rapidly growing and successful Zalando.

The important thing to note here is that different country markets should be considered independently when setting up a fashion online marketplace. For example, e-commerce represents over 36% of the UK retail market (2021) with Amazon being the top site. Then comes eBay, which sells second-hand clothing and has online stores, while Next, the clothing retailer is number 5 on the list and receives 37.1 million visits per month.2

While this is an opportunity to offer new products to a new target market it’s essential to understand consumer habits. Doing this ensures a core and profitable product range while allowing room for trial products to engage new customers.

Further Amazon fashion marketplace analysis

A report produced by Lengow and DataHawk found that only 22% of Amazon searches include a brand name. People are more likely to search for the product they’re looking for, e.g. ‘cotton summer dress’. This indicates consumers do not associate Amazon with brands and leads to the question of whether competitors have an opportunity to promote brands. It also shows that you don´t need to be a well-known brand to sell on Amazon – a reason to trial a new, young brand or nonbranded products.

One of the most common brands on Amazon Europe and the UK is Fruit of the Loom. The range includes a selection of basics – t-shirts, polo shirts, sweatshirts, fleeces and underwear in a wide variety of colours. Whilst not selling directly to the public, Fruit of the Loom has a large network of wholesalers throughout Europe that serve the Amazon offering.

Which are the best-selling products on Amazon?

The report shows that consumers buy more basic clothing items from Amazon, such as underwear, socks and t-shirts. This shows that people might prefer to purchase more ‘fashionable’ clothing from the specialist marketplaces.

Other products that are common purchases on Amazon are leggings, sportswear and slimming belts. These are often unknown or cheap brands from China. The report states people often buy in bulk, suggesting they want a ‘no-nonsense’ approach to shopping for basic clothing.

In comparison, marketplaces such as Zalando and Yoox offer fashion ideas and inspiration. The sites create a story and encourage the purchase with suggestions for complementary items. Amazon fashion does not portray a creative element with the temptation to buy.

The different fashion sectors

Only 22% of Amazon searches include a brand name. People are more likely to search for the product they’re looking for, e.g. ‘cotton summer dress’.

Fashion marketplaces sell a variety of products, as well as clothing, including accessories, bags, footwear and jewellery. Each of these is split into various categories, the main ones being:

Clothes

Shoes

Sportswear

Accessories

These are further divided into men, women and children’s categories. Something noticeable is that several online marketplaces also offer a separate designer brand sector. This reflects the increasing desire to wear brand clothing, especially among Millennials. From a commercial point of view, the sale of high value, designer items provides more profit.

During the pandemic, sportswear and loungewear sales grew as people were spending more time at home. As people return to their previous lifestyles and ‘normality’ there is an opportunity for fashion brands to promote a wider wardrobe range.

What influences online fashion sales?

One of the main factors that influences fashion purchases is social media. Influencers play a major role in shaping fashion and trends, with platforms such as Instagram, TikTok and Pinterest being common sources of fashion ideas. Some brands supply bloggers with free clothing in return for photographing themselves wearing it. This is a business opportunity for the brands to raise their profile and influence the world of fashion.

Online retailers that sell the ‘look’ attract users, with the opportunity to purchase accessories and complementary items. In the current world of convenience and constant viewing of smartphones a customer can make a purchase in seconds while they’re walking down the street.

Other factors that can attract a purchase include free and fast delivery and convenient returns (courier collects from home).

Add to this excellent, inspirational photography that’s updated regularly, and you have a winning formula to grow digital sales.

As of January 2022, there are 3.96 billion total social media users across all platforms. Facebook remains the most used platform by marketers worldwide (93%). Instagram sits in second place (78%) with 2 billion users.

TikTok is the fastest-growing social network with a staggering 105% user growth rate in the US over the past two years.

Influencers play a major role in shaping fashion and trends

02

Why sell on fashion marketplaces?

As e-commerce grows, so does the opportunity for brands and retailers to sell fashion online. Marketplaces offer the chance to benefit from their supply chains, return policies and marketing strategies.

Due to the COVID-19 pandemic and rising costs, we live in an uncertain world. However, fashion represents a large portion of the online retail market and consumers are widely buying clothing and accessories.

Selling on marketplaces is a secure and cost-effective way to promote and sell fashion, particularly for smaller brands that may not have the resources to set up their own store.

Fashion marketplaces: growth driver & impact of COVID-19

CBCommerce1 forecasts that fashion sales in Europe will grow to a value of €525bn by 2025 from the figure of €475bn in 2021. This includes apparel (including casualwear but excluding specific sports clothing), accessories and footwear.

One of the factors is the increasing exposure customers have to digital purchases. Buying from Zalando or ASOS is quick and easy. Most people have a smartphone and can purchase online fashion and accessories in seconds.

Whilst the damaging effect of COVID on retail sales initially caused a slowdown in purchases due to uncertainty, when people were in lockdown and unable to visit their favourite fashion stores in person, they soon realised ordering online was the solution.

Whilst consumers didn’t need to dress up to go out to restaurants and leisure events, they still wanted to look good while at home by lounging in a cosy dress or wearing the latest sportswear, which is why casualwear saw growth. This is reflected in the womenswear sector of the casualwear market, which showed a revenue of $170.6bn USD in 2020, amounting to 52.6% of the total market value.2

This convenient way to shop continued when life returned to ‘normal’ as consumers realised the convenience of online fashion shopping.

The disruptions experienced by the industry due to a shortage of raw materials, increased transport costs and logistical problems have been a challenge for the fashion industry. According to a survey by McKinsey, 84% of executives are addressing this as a priority.3

The reality is that smaller businesses are likely to have to increase costs unrealistically to combat the supply chain problems. Selling on a marketplace shares the responsibility of this issue.

How the supply chain crisis has affected the fashion industry

Fashion sales in Europe will grow to a value of €525bn by 2025.

The benefits of selling on fashion marketplaces

Fashion marketplaces give sellers the opportunity to offer their range at a much lower risk than through a dedicated retail store. Fashion shoppers want to browse a wide choice of products at any time of day or night and marketplaces facilitate this immensely.

Reduced costs

Limited set-up and marketing costs, as there’s no need to set up an online or physical store. If a seller already has a store this is an additional channel to give their brand more exposure.

Wider target audience

Selling through a marketplace, especially a well-known one such as Zalando or YOOX, opens up the possibility of global sales. How else can a fashion retailer easily reach such a wide market? However, they must consider shipping costs abroad to be sure there is a financial benefit.

Customer trust

Selling a brand on a platform such as Zalando projects a professional image that implies the business is reputable. This can build customer loyalty. The customer assumes they will receive good customer service in the event of any problems, and the marketplace takes this responsibility.

Engagement

Buying from an established fashion marketplace with a sound reputation also brings engagement. Marketplaces are growing and expanding their presence, for example, Zalando’s recent acquisition of a stake in Highsnobiety. Marketplaces spend a large portion of their budget creating inspirational images and lifestyle scenarios to encourage purchases.

Seamless customer experience

Marketplaces offer automated ordering and a seamless customer experience whenever and wherever they are. There are no issues with time zones, giving wider possibilities for trading. Customer services teams operate 24/7 on the larger marketplaces, so queries can be answered immediately.

What are the main fashion marketplaces?

Whilst smaller fashion marketplaces are popping up all the time as businesses recognise the potential for a profitable business model, the core main global players continue to dominate.

The first online flash marketplace to launch in the UK, the core business is designer label fashion with the enhancement of cosmetics and homeware. This marketplace also offers pre-owned designer fashion and accessories.

A relatively new player in the fashion marketplace arena, Veepee was launched in 2018 and now has 66 million members. Focussing on fashion and homewear, Veepee is a French-based marketplace and supports lesser-known brands.

A French marketplace with a revenue of €1 billion in 2021 that offers daily fashion flash sales that last up to a week. The company has expanded throughout Europe and sells premium fashion at discounted prices.

As the largest fashion marketplace in Europe this German company is a major player in online fashion. They reported an increase in the number of customers over the 12 months to the end of March 2022 as 17%, reaching 49 million. To enhance customer engagement Zalando states it is extending Zalando Plus membership (premium delivery, early access to new stock releases, personal stylist advice). Membership of this service (similar to Amazon Prime) increased 150% year on year, making it another way to benefit from selling on a marketplace.4

With a strong social media presence and its target market being Generation Z, ASOS aims to be “the world’s number-one destination for fashion-loving 20-somethings”. The company achieved a 4% increase in revenue for the 3 months to the end of 31 May 2022, not massive growth, but significant in the current climate.5

This relatively new marketplace targets the higher spend customer in Europe, with plans to expand globally during 2023. The company sells the lifestyle idea, rather than just individual items. Primarily selling in Italy, with many Italian brands, YOOX has expanded to the rest of Europe and has seen year-on-year growth since the pandemic, with net sales of USD 897.9M in 2021.

A marketplace specialising in outdoor clothing and casual clothes for men. Based in Paris, the marketplace achieved over €276 million in 2021, and is present in 14 countries, including its United States launch this year.

The marketplace Spartoo only has a presence in Europe and China at the moment, with 8 million active customers (a small figure compared to Zalando’s 49 million). Global net sales reached USD 77.5m in 2021 with 55% of sales being generated in France.6

A marketplace based in Barcelona, Spain, with a global sales figure of USD 939.4m in 2021. The advantage of Privalia is its strong presence in Spanish-speaking markets like Spain and Mexico, but also in Italy and Brazil.

The French marketplace best known for fashion and homeware. With over 650 sellers and brands such as Adidas and Mango, La Redoute is a popular choice for fashion purchases in Europe.

One of Europe’s fastest growing fashion marketplaces, operational in more than 10 EU markets. In 2021, the platform already counted 27 million unique active users per month.

A new marketplace launched in 2021 and based in Belguim. INNO only currently sells to the Belgian and Dutch markets.

The world leader in the sports market is also selling sports and fitness clothing. Decathlon is present, among others, in France, Germany, the UK, Spain, Italy and Belgium. The Belgian Decathlon marketplace alone registers more than 13 million unique views each month.

General marketplaces known for goods such as homeware, electronics, toys and books are also important fashion marketplaces, albeit on a smaller scale to the specialists. These include Amazon7 , OTTO bol.com and Cdiscount. Worth noting is that clothing, shoes and jewellery rank as the 4th highest sales category on Amazon, giving it a competitive edge against marketplaces dedicated entirely to fashion.

The influence of social shopping on marketplaces

Social media is a big part of online fashion marketing. Brands give influencers free garments to post themselves wearing them on platforms such as Instagram or TikTok. This relatively new way of marketing focuses on customers making buying decisions based on reviews.

An example of the influence of social media on marketplaces can be seen from the popularity of a specific brand of leggings, promoted by TikTok users. This had no input from Amazon and came from one TikTok user posting a video of the leggings. The post received over 2.5 million8 views, with ‘TikTok’ leggings becoming one of the most searched phrases on Amazon over a 30-day period. This demonstrates the power of this form of marketing.

“TikTok Leggings” became one of the most searched phrases on Amazon over a 30-day period.

3.

Best practices for fashion e-commerce and marketplace strategies

Fashion e-commerce is very different from standard e-commerce. It requires an inspirational mood that takes the customer on a visual journey. Imagery is a powerful concept in online fashion and has the power to heavily influence purchasing decisions.

Online fashion retail is also highly competitive. The companies that succeed are those that understand the needs of their target market. Shopping fashion online is a personal experience that allows the consumer to shop 24/7, whenever it suits them.

A survey conducted by McKinsey states that 32% of fashion retailers interviewed see digital fashion as an opportunity for growth.

Designing and implementing the correct sales strategy

Driving sales in a competitive market requires time and investment to create the right strategy. For a sales strategy to be effective; customer needs, the target market, and delivery should all be taken into account.

A successful sales and marketing strategy aims to solve a problem for the customer. This can range from being able to quickly provide an outfit for a wedding to supplying a pair of shoes in a size not available at a brick-and-mortar store.

Build confidence in your brand

Would you buy from an unknown retailer? Or would you be more likely to trust one that a friend has recommended to you? Networking and exposure are all about getting your fashion brand known and recognised.

This can come from:

• Regular blogs and social media posts – indicating an interest in providing valuable content for the customer (from a dedicated team if possible)

• Creating value – not just through price promotions, but by offering advice e.g. complete outfit ideas, sports advice, hair care, healthy eating, or anything that can be linked to the brand

• Design quality visuals – display models wearing the items, create videos (73% of US adults are more likely to buy an item after watching an online video)1 showcase accessories such as jewellery and bags

Customer alignment

The online fashion retailer who is truly in tune with their customers has a good understanding of their mindset. This links them to the target market. If a brand is targeting millennials who favour streetwear, the key is to research this market.

For instance:

• What social media do they use?

• What is their average spend?

• Do they buy add-on products (belts, jewellery, hats, sunglasses…)?

• How often do they visit a fashion retail site?

• What is the average time they spend on a fashion site?

• On what marketplaces do they shop?

• Do they want sustainable clothing?

Understanding the answers to these questions gives retailers the chance to enhance their brand and innovate, further driving sales.

Make browsing and purchasing easy

A website or mobile app that is easy to use and facilitates the customer experience is one people will use and save as a favourite. Fashion consumers want inspiration, high-quality images, and the opportunity to purchase in seconds through a fast checkout system.

Keeping the visitor on the site is key, and can be encouraged through:

• Keeping the site simple

• Adapting the website to a mobile app

• Making sorting preferences easy (by price, colour, size, style, product type)

• Offering new products regularly

• Running regular promotions (summer sale, cyber-Monday, end of season…)

• Loyalty programmes

• Easy and varied payment options (include PayPal, Apple Pay, Google Pay, etc.)

• A wish list facility so customers can save their favourite items

• Saving the shopping basket

These strategies all encompass engaging with the target market and being a site that consumers frequently return to searching for innovative ideas.

All these points are particularly important for your own shop. However, marketplaces place special emphasis on them, which is why they are so popular with sellers. If you want to profit immediately, start with marketplaces, which are a much more costeffective option than doing your own marketing.

How to improve your presence on fashion marketplaces

Fashion marketplaces - like vertical marketplaces in general - often pose a certain challenge for brands and retailers. Why? Because these platforms can be very demanding when it comes to connectivity and integration. Moreover, not every marketplace suits every fashion assortment, which is why it is important to make the right choice in advance. Importance should be attached to a well-maintained product catalogue; this must contain high-quality and comprehensive product images and as many product variations as possible.

Often marketplaces also offer so-called brand shops, which the brand can adapt to certain standards in order to stand out from the competition. Such a store will uniform your branding and storytelling, increase the traffic, and give the customer a better overview of your product range on the marketplace.

Here are the key questions a brand must answer to find the right marketplace:

• What do I want to achieve on the marketplace?

Increase sales and revenue? Develop my target group? Get end customer data? Correct brand presentation?

• Where do I want to sell my products?

National or international focus?

• Which marketplaces should be considered? Niche fashion or generalist marketplaces or both?

• Do I want to use the seller, the vendor or the hybrid model? As a seller, the merchant sells their goods to end customers, as a vendor first to Amazon/the marketplace.

Select the right marketplace

For example, Zalando operates in 23 European countries and received orders from over 48 million customers in 2021 (Zalando Investor Factbook, May 2022). This represents over 10% of the total European population and is a large potential market for online fashion brands and retailers. Featuring on a marketplace such as this is likely to give a brand more exposure. However, there will be a lot of competition, which is why identifying a unique selling point is so important.

• Which products do I want to sell on marketplaces and which ones do I prefer to keep on my site? New product ranges?

• Do I want to be known for regular discounts on high-end fashion brands or are the masses my target market?

When starting out in fashion marketplaces, you need a marketplace logic and strategy, because the marketplace business is extremely diverse, complex, and dynamic in its own right. One of the key success factors is the speed of implementation (time to market). The size of the catalogue is also important.

Case Study:

The best two-channel strategy between your own online shop and fashion marketplaces

Example of a fashion brand using Lengow for its assortment’s strategy on fashion marketplaces.

When using fashion marketplaces, it is crucial to focus on the right segmentation of the product catalogue. It all depends on the company and the goal it is pursuing. For example, the strategy of a fashion label can be to «reserve» a part of the new fashion collection exclusively for its own online shop, which leads to a certain exclusivity. However, the larger part of it is sold via marketplaces such as Zalando or YOOX. Surplus stock and discontinued models are sold on to Amazon and items on which a generous discount can be given go to sales flash marketplaces such as Veepee, Showroomprivé, BrandAlley or Zalando Lounge. This is what a sales strategy with different marketplaces can look like.

Case Study: Development of a profitable digital strategy on marketplaces for Liberitae

Example of a fashion brand using Lengow to optimise its global strategy and improve its sales and general income.

9 active marketplaces

16 countries in which it is present

x10 turnover on marketplaces

When expanding on marketplaces it is essential to be able to connect quickly and efficiently to new platforms, respecting the requirements for each of them. Another key point is to perfectly manage stock synchronisation and orders to avoid customer dissatisfaction and thus the eviction of the brand on the marketplace.

These key points allowed the brand to rapidly access new marketplaces, new countries, increase its visibility and thus its online profitability.

Discover the complete success story here

Create a personal customer experience

To stand out, an e-commerce fashion site needs to be innovative and connect with the customer. Being a brand that offers extras means being a brand that people will search for and return to. Marketplaces offer brands and retailers the opportunity to deliver extras, rather than just a product listing, this can help with brand exposure, for example:

• Shop the look

• Event-specific (festivals, holidays, prom dresses…)

• Blog features

• Trending now

• Outlet

• Editor’s choice

• Category marketing (summer jewellery, back to uni, workwear, sports clothing…)

All these are tactics used by various marketplaces and are designed for fashion retailers to gain exposure.

Correct sizing is also important. If a customer knows that a certain brand fits them well they’ll buy from it again. If they need to return goods they’ll probably shop elsewhere.

This links with product information. To be a go-to marketplace it’s essential to offer accurate information such as color availability and garment details. If an item is sustainable it should be mentioned, as well as any other USPs.

The right price on marketplaces matters

The fashion shopping experience often starts with an online search. One of the main influencing factors in the purchase is price. According to a survey carried out by Think, with Google 87% of shoppers want to know they’re getting a good deal when they decide to buy. Compare this with the figure of 49% of shoppers wanting a promotion linked to a past purchase and we can see that the first purchase and price are key to driving sales.

Therefore, you should connect your product catalogue with your competitors to analyse their prices on your different fashion marketplaces.

• Identify price patterns and anticipate price drops by competitors.

• Define pricing rules ensuring your profit margin on marketplaces, especially during sales peak moments.

• Monitor your competitors’ products.

• During high sales phases (Black Friday, Prime Days etc.) set an alert system to control the availability of your products on the different marketplaces.

You can do this on all your marketplaces with Lengow’s price intelligence tool Netrivals. This tool tracks pricing so you’re always in control and you can decide to be never more expensive than your competitors.

Any online sales strategy will only be successful with a wellfunctioning e-commerce platform. This is where Lengow can help, with a unique platform tailored to the needs of online brands and retailers. With marketplaces developing so rapidly, especially fashion marketplaces, the creation of the ultimate experience is a vital sales tool.

4.

What’s new in fashion marketplace marketing?

Fashion marketplaces will become more competitive as the trend toward online sales grows. Therefore, it makes sense to capitalise on the latest sales and marketing methods.

Driving traffic to marketplaces is the key to engaging and encouraging customers to make a purchase. This cost-effective marketing strategy is the way forward both for organisations who want to run a successful fashion marketplace and retailers who want to sell on it.

The trend towards live commerce

Fashion purchasers want to engage in an experience when they buy online. It’s no longer a case of only log-on, click and buy. The visitor wants to interact with the brand.

The main live commerce trends that marketplaces can benefit from in the future include:

Video marketing

Key tool that can personalise the shopper’s experience and capture their imagination. The secret is to direct the video to the viewer. Unlike a standard video, which targets the masses, personalised video marketing appeals to the emotions.

The video should be stimulating, not just an attempt to encourage a direct sale. For example, Burberry’s ‘Singin’ in the Rain’ video enhances the senses with music, sights and sounds so you almost forget it’s trying to sell you a Burberry raincoat. What it does do is create a memorable video that inspires you to share. Two examples from marketplaces - the Limitless Fashion campaign by Zalando promotes unisex clothing while ASOS has its own YouTube channel.

Virtual/augmented reality

Being able to try on clothes virtually before buying is changing the way consumers shop. Big brands such as Nike, Gap and Ray-Ban all use technology to allow the user to see what they look like in the product. Some also encourage sharing of the final image before the customer buys, which is a clever marketing strategy as the customer is doing the marketing.

What’s the difference between virtual reality and augmented reality?

Virtual reality provides a 3-D shopper experience, for example, the shopper can try on clothes virtually. Augmented reality uses a live experience of the real world, for example, being able to visualise a wedding dress in a church or a sports shoe on the tennis court.

The power of social media

Social media for marketplaces is the digital equivalent of word of mouth. It builds brand awareness and loyalty. For a brand to be successful, it needs to be visible. This means taking part in marketplace advertising campaigns and being the brand that pops up the most.

One of the latest ways social media creates interest to leverage sales is through influencer marketing. There is a direct connection between influencers and their followers on social media platforms such as TikTok and Instagram. This strategy is far more successful than standard print media advertising as it creates mass brand exposure. Brands pay influencers or give free clothing in exchange for positive reviews and lifestyle photographs of the influencers wearing the brand.

Customers want to see real people wearing the items they’re considering buying. Whilst models have a place in the fashion industry, diversity is widely accepted today Modern fashion is about self-expression and being an individual, not being worried about size, race, or skin colour. Influencers have the power to project these characteristics onto fashion brands.

Pinterest is a popular visual platform. An interesting figure is that 86.2% of Pinterest users also use Instagram, providing a reason for businesses to promote on both platforms. Pinterest encourages users to create boards where they can save their favourite pins, such as summer outfits or holiday clothes. This offers a valuable marketing opportunity to tap into to boost sales.

Advertising by fashion marketplaces on social media also creates awareness. However, the brand must act appropriately for the platform it uses. A brand targeting clothing for 40–50-year-olds is less likely to gain followers through advertising on TikTok or Snapchat than it is on Facebook. This demonstrates the need for fashion brands to understand their target market and the marketplace where they are considering placing their advertising.

Modern fashion is about selfexpression and being an individual, not being worried about size, race, or skin colour.

The growth of retail media for fashion

Marketplaces give fashion brands the chance to advertise on the site. This is cheaper than advertising with Google or Facebook and can have more targeted results. The ad appears on an app or web page that is already stocking the brand, leading the customer directly to it. Ads can appear anywhere, from the home page to seasonal or themed pages. For example, Zalando currently offers Summer Nights, Festival and Wedding pages.

Amazon is the historical leader in this retail media category with themed advertising as soon as you hit the home page, tailored to previous visits and likes. But fashion marketplaces, such as Zalando have caught up and now offer a more complete shopping experience. This is still a relatively new concept for fashion marketplaces, however, Zalando’s example shows the potential of this marketing strategy and how others are likely to follow in the coming months and years.

Retail media enabled

No retail media offering

Source: Retail Media Report

These are only some of the thousands of options which work by enticing the customer and leading them through a fashion journey. This form of marketing draws on the desire for an emotional experience when purchasing fashion brands and boosts visiting traffic.

User-generated content (UGC) for fashion marketplaces

User generated content is the art of getting people to like, share and follow brands with content produced by anyone. It prompts users to take their own ‘real’ photos and post them on their own social media. This encourages reviews and comments leading to brand exposure. For example, if a Lacoste subscriber posts a photo of themselves wearing a Croc polo on the tennis court the brand has a major (free) advertisement. Not only do brands on marketplaces want people to watch their videos and view their posts, but they also need likes to boost interest. Reposting on social media channels is a powerful way to create interest in fashion marketplaces.

How the metaverse is changing fashion marketing

The brand ambassadors demonstrate confidence in the product and improve its credibility. UGC also includes videos – walk along the shore in your Calvin Kleins on your Caribbean holiday and both you and the brand receive a boost. And as smartphones become more sophisticated so do the images they produce, giving a professional image.

Social media can also invite users to comment, give feedback and take part in polls. This valuable form of market research is cheaper than the old-fashioned method of setting up focus groups as it gives instant results. UGC campaigns inviting viewers to integrate with the brand can be successful. For example, ‘post a photo of yourself wearing your new Nikes and we’ll enter you into a competition.’

The metaverse is marrying technology and fashion, blending them into a digital world. Designers and stores essentially produce garments in digital form, rather than as physical products. With the increase in the desire for sustainability, particularly in the fashion world (e.g. recycled and second-hand clothing), this is a major step towards appealing to environmentally aware consumers.

There is also a cost-saving since all you need is a computer and an eye for expressive fashion creation. There’s no need to produce sample garments in all shapes and sizes. The click of the mouse can change a jade green top to a sunburst yellow dress.

In terms of marketplaces, the metaverse is an ideal platform to trial fashion garment ideas and scrap them if they’re not successful – at a minimal cost. Digital fashion is also a way to perform customer research. Your target market is out there, you just need to interact with them. If marketplaces make this possible for retailers, it’s another way to encourage sign-ups.

Other ways to boost marketplace sales

These ideas may seem obvious, but they are all critical to the total package offered in an online fashion marketplace. Focusing on the wants and needs of potential customers and understanding their behaviour is the best way to drive sales.

Use quality photographs and lifestyle scenarios –create the dream

Give detailed product descriptions – if a product is made from organic cotton or comes in an XS size tell the customer

Add reviews and ratings – these indicate the item has been purchased by a real person

Create a sustainable sales page where customers can return used goods they’ve purchased from you that are still in good condition

Capture customer data and use personal email marketing to build loyalty and engage

Promotions such as discounts, seasonal offers, Black Friday, Cyber Monday etc. will all bring in more sales (tell your loyal customers about these first and offer extra price reductions)

Power better e-commerce strategy on marketplaces with Lengow

With the acceleration of ecommerce, particularly in the fashion sector, the rise of marketplaces, and all the opportunities offered alongside them, it is now clear that online brands and retailers have a card to play on these platforms to increase their audience and sales.

Make the most of this booming environment, expand your sales reach and increase your revenues on marketplaces thanks to Lengow:

Scale your business

Integrate with 200 global or niche marketplaces in 35 countries

Internationalise your ecommerce strategy

Test the appetite of customers for your products on new marketst

Careful planning to boost sales through a detailed marketing strategy is the way to increase marketplace sales and inspire old and new customers!

Free shipping is often the deciding factor when buying online – if your business can afford it build it in and promote it (although you may be tied into the marketplace’s shipping costs)

Choose a marketplace that offers multiple payment methods – if a customer can´t pay with PayPal or Apple Pay they may shop elsewhere

In a market as fragmented as Europe, marketplaces make it much easier to distribute your products in many countries and to meet the specific needs of each market while limiting costs.

Increase the visibility of your products

Easily enrich your product catalogue and adapt your feeds to each marketplace’s requirements

Save time and reduce costs

Automate your daily tasks and processes

Centralise your orders management

Keep track of your inventory by synchronising all of your data in a unique platform

Lead the game and boost your sales

Monitor competition and adapt your business strategy accordingly

1. https://www.cbcommerce.eu/top-20-fashion-retail-report/

2. https://www.statista.com/statistics/524853/amazon-fashion-market-share-usa/#:~:text=According%20 to%20estimates%20as%20of,was%20estimated%20at%2034.5%20percent.

Best practices for fashion e-commerce and marketplace strategies

1. https://animoto.com/blog/business/small-business-video-infographic

2. https://commonthreadco.com/blogs/coachs-corner/fashion-ecommerceindustry-trends#fashion-ecommerce-trend-market

1. https://www.cbcommerce.eu/top-20-fashion-retail-report/

2. https://www.statista.com/forecasts/890785/e-commerce-revenue-in-europe-fashion-by-segments

3. https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion

4. https://corporate.zalando.com/en/investor-relations/financial-reporting

5. https://www.drapersonline.com/news/asos-names-new-ceo-as-profits-hit?utm_source=Bibblio&utm_ medium=Recommendation&utm_campaign=Recommended_Articles

6. https://ecommercedb.com/en/store/spartoo.com

7. https://www.junglescout.com/blog/amazon-product-categories/

8. https://www.marketplacepulse.com/articles/tiktok-leggings-on-amazon

Lengow is the e-commerce automation solution that helps brands and distributors improve their performance, automate their business processes, and grow internationally. The Lengow platform is the key to strong profitability and visibility for products sold by brands and online retailers around the world on all distribution channels: marketplaces, comparison shopping engines, affiliate platforms and display/retargeting platforms. Since 2009, Lengow has integrated more than 1,600 partners into its solution to provide a powerful platform to its 4,900 retailers in 64 countries around the world.