Merchant of Record and Eco-Taxes: EPR Compliance in European E-commerce

How to manage costs, logistics and returns on Europe's leading fashion marketplace

Zalando is the leading fashion-focused marketplace in Europe. With a strong presence across 25 European countries, the platform caters to an audience of fashion enthusiasts seeking a premium user experience. Understanding how the Zalando platform works is the first step for businesses looking to expand their market share in the clothing, footwear, and accessories sector.

Integrating your catalogue into this marketplace guarantees concrete operational and commercial benefits for expanding sales in Europe. Here are the 4 main advantages:
Unlike generalist marketplaces, Zalando exclusively targets fashion-interested users. Those browsing the platform have a higher conversion rate and a well-developed propensity to purchase clothing and accessories.
Customers are more likely to buy from new brands if the transaction is backed by Zalando's standards regarding payments, deliveries, and returns. The platform's reputation directly reflects on the products in the catalogue.
Through Zalando Marketing Services (ZMS), it is possible to prominently position items by leveraging users' actual purchasing habits, thereby optimising the effectiveness of your advertising budget.
The platform adapts to both brands with centralised distribution (Partner Program) and physical retail stores wishing to sell their in-store merchandise online (Connected Retail).
The Zalando Partner Program is the main channel that allows brands, manufacturers, and distributors to sell their products directly on the platform, maintaining control over pricing, assortment, and brand image. To join the Partner Program, it is necessary to pass a selection process and guarantee operational standards aligned with the expectations of the Zalando customer:
Catalogue relevance: products must belong to the fashion, accessories, footwear, sportswear, or beauty categories.
Presence of an e-commerce site or suitable infrastructure: an already established operation and the ability to handle consistent sales volumes are required.
Shipping and returns standards: the ability to ship with trackable couriers and to accept the platform's return policies (including the management of free return shipping for the user).
Legal and tax compliance: a valid tax registration (VAT number) in the European countries where you intend to sell (find out more about selling in Europe while complying with eco-taxes [insert link to 10/09 article]).
Product data quality: high-resolution photos on a neutral background and technical specifications that comply with the marketplace's visual guidelines.
The 4-step integration process:
Application submission: Through the Zalando partner portal, entering company details, the type of assortment, and target markets.
Choice of logistics management: In this phase, you decide whether to ship orders directly from your own warehouse or entrust storage and deliveries to Zalando Fulfillment Solutions (ZFS).
Technical and catalogue integration: Your own management system (ERP/CRM) or e-commerce platform is connected to Zalando via direct APIs or by using third-party integrators to synchronise prices, stock levels, and orders in real time.
Validation and going live: The Zalando team carries out a quality check on the product content and images. Once the verification is passed, the catalogue is published and ready for sale.
While the Partner Program is designed for those managing centralised logistics, Connected Retail is Zalando's answer to the need for true omnichannel retailing. This model allows merchants to overcome the geographical limits of their physical stores. The merchandise displayed on shelves and stored in the stockroom is simultaneously made available to the millions of users on the platform. In this way, the company continues to sell physically to customers who enter the shop, while the same inventory captures European online demand.
How the process works: Connected Retail transforms the traditional shop into a logistical micro-hub, through a workflow integrated into the store's daily routine:
Inventory synchronisation: The point-of-sale (POS) management system is connected to Zalando. The items present in the shop immediately become visible online to users browsing the platform.
Order receipt: When a customer purchases an item on Zalando and the system detects that it is available in your store, you receive an order notification via the dedicated interface (the tool provided by Zalando is usually accessible from a standard tablet or PC at the till).
In-store Pick & Pack: Shop staff pick the item from the shelves, carry out a quality check, pack it in Zalando-branded packaging, and print the pre-filled shipping label.
Courier collection: There is no need to go to the post office because the partner courier (for example, DHL or the local postal service, depending on Zalando's local agreements) comes directly to the shop at agreed times to collect the parcels and manage delivery to the end customer, as well as any returns.
Requirements to participate: Accessing Connected Retail requires simplified operational parameters compared to the Partner Program. You must possess:
At least one physical retail store regularly open to the public.
An inventory management system capable of interfacing with Zalando's infrastructure, in order to avoid selling out-of-stock items.
In-house staff to manage the daily preparation of parcels.
An internet connection and a printer for shipping documents.
This model allows physical retailers to significantly increase their local stock turnover, clearing current collections more quickly and reducing the risk of accumulating unsold stock at the end of the season, all without having to build an e-commerce site from scratch.
For companies that do not have the internal resources or technical expertise to manage direct integration, selling on Zalando can be entirely delegated to a specialised external partner such as T-Data s.r.l. In this model, the intermediary takes over the management of operational, technical, and bureaucratic aspects on behalf of the brand.
Technical integration and catalogue management: the external partner provides a software infrastructure already connected to the platform. They handle the uploading of product listings, data mapping, and real-time synchronisation between the warehouse and the marketplace.
Bureaucratic and tax management via a Merchant of Record: the outsourcer takes charge of issuing invoices, collecting payments, and managing cross-border tax regulations in the various European countries served by Zalando.
Logistics operations and customer service: from shipment preparation to returns management, right through to multilingual after-sales customer support, the partner ensures compliance with the strict service parameters required by Zalando.
Reduced time-to-market: by leveraging the technology and active licences of entities like T-Data s.r.l., the brand avoids lengthy IT development and bureaucratic approval times, starting to sell online in just a few weeks.
Selling on Zalando does not involve a fixed price list that is the same for all merchants. The cost structure is mainly based on percentage commission fees calculated on each completed transaction, to which any logistical and promotional expenses are added.
Zalando applies a percentage deduction on the final selling price of each item. The commission generally ranges between 5% and 25%, depending on the product category (clothing, footwear, accessories, or sportswear) and the item's price point.
By choosing Zalando Fulfillment Solutions (ZFS) logistics, the partner pays a variable fee for storage, packaging, and shipping services. When managing logistics independently, you need to consider the costs of your own trackable couriers and the full coverage of expenses for the free returns guaranteed to the buyer.
The use of Zalando Marketing Services (ZMS) advertising solutions is an optional expense. It is a useful lever for those wishing to position their catalogue at the top of search results or activate dedicated promotional campaigns.
The economic viability of selling on the platform therefore requires careful planning of product margins, taking into account the weight of category commissions and returns management.
As already seen, Zalando is a vertical marketplace focused exclusively on the fashion and lifestyle sector. To achieve good commercial performance, the assortment must fall within the portal's key categories and meet specific quality standards.
Clothing and footwear: Garments for women, men, and children ranging from streetwear to prêt-à-porter. Seasonal products and permanent collections represent the core of sales on the platform.
Sportswear and accessories: Items for fitness, running, outdoor, and performance sports. The sportswear segment sees strong interest from an active and dynamic audience.
Accessories and leather goods: Bags, suitcases, belts, sunglasses, watches, and jewellery that complement the catalogue's clothing offer.
Beauty and personal care: Skincare, make-up, haircare, and mid-to-high-end fragrances, ideal for expanding the presence of beauty brands on the digital channel.
Sustainable and second-hand fashion: Items made with recycled or organic materials and guaranteed pre-owned garments. Zalando gives dedicated visibility to brands that meet specific environmental sustainability criteria.
Generic consumer goods unrelated to the fashion world, unbranded items, and products that do not comply with European regulations remain excluded from the platform.

In addition to the technical integration rules seen so far, the seller's daily operations are the true determining factor for success on Zalando.
On the one hand, punctuality of deliveries and the rapid management of returns logistics ensure compliance with the standards imposed by the platform, avoiding penalties or account suspensions.
On the other, prompt and multilingual customer care resolves buyer reports and protects the brand's reputation, directly influencing reviews and the final purchase conversion.

Selling on Zalando requires overcoming complex challenges, from synchronising catalogue feeds to managing shipping and European tax obligations.
T-Data supports companies by providing a ready-made infrastructure that covers technological integration, warehouse operations, and dedicated customer care. This setup allows management to outsource operational complexities and concentrate resources solely on product development and growth strategies.
Contact our team to evaluate the integration of your brand on the main international marketplaces.