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JENS BERGERMANN

Digitec Galaxus is the largest online marketplace in Switzerland and is part of the Migros Group, one of the country's leading retail companies. The platform consists of the two websites digitec.ch, specializing in consumer electronics, and galaxus.ch, which offers a wide range of products from electronics to everyday items. Originally founded as a pure electronics provider, Digitec expanded its offering under the new Galaxus brand. Today, Digitec and Galaxus provide retailers in Switzerland, and increasingly in Germany and Austria, access to a huge customer base and extensive reach.

What requirements must retailers meet to sell on Galaxus? To sell on the Digitec Galaxus marketplace, retailers need a solid IT infrastructure to seamlessly integrate their systems with the marketplace, ensuring the automated exchange of product and order data. Additionally, it is important to adhere to Digitec Galaxus' philosophy and high-quality standards.

Challenges of selling on the Swiss online marketplace, such as logistics, import, and storage, can be easily managed by directly shipping products to end customers and through targeted support from distribution partners. Distribution partners assist with the introduction of new products to the Swiss market and offer many advantages, such as optimized storage and smooth import processes.

What are the advantages of Digitec Galaxus?

Digitec Galaxus offers retailers a wide range of benefits when listing products on the platform. Here are the key advantages:

1. Large reach and high customer volume:

• Europe-wide presence: Since November 1, 2018, Digitec Galaxus has been active across Europe, operating online stores in multiple countries, including Germany, Austria, Italy, France, Belgium, and the Netherlands.

• High traffic: In 2023, the marketplace generated a revenue of 286 million euros and recorded over 6 million visits per month on its online stores. This enables retailers to gain substantial visibility and reach a broad customer base.

• Active customer base: With more than 1 million active customers, retailers benefit from a large and engaged customer community.

2. Strong brand image and transparency:

• Focus on brands and quality: Unlike other marketplaces like Amazon, which offer a wide range of products, Digitec Galaxus focuses on a higher-priced assortment centered on brands and quality. This attracts customers willing to pay more for high-quality products, positively impacting retailer margins.

• Independent editorial team: Digitec Galaxus not only operates an online shop but also hosts an active community and a magazine. The independent editorial team critically and honestly tests and reviews products without concern for revenue loss. This transparent approach builds customer trust in the platform and its products.

• Transparency: The online marketplace values transparency towards its customers, reflected in features like tracking price developments, return rates, and manufacturing countries directly on product pages.

3. Comprehensive marketing and advertising opportunities:

• Marketing and customer service: Retailers benefit from Digitec Galaxus' extensive marketing services, including placements in newsletters and promotional activities. The marketplace's customer service handles questions and returns directly, making the return process simple and convenient for customers.

With these advantages, Digitec Galaxus positions itself as a high-quality alternative to other major marketplaces, allowing retailers to showcase their products in an environment focused on transparency, quality, and an engaged community.

What is the reach of Digitec Galaxus in Switzerland?

In 2023, Galaxus, together with its sister platform Digitec, achieved remarkable success. Around 4.09 million customers worldwide shopped at Galaxus or Digitec. This represents a significant increase in active customers since 2015, when the number was less than one-fifth of the current figure. About 3 million of these customers shopped exclusively in Switzerland, making up nearly 50% of the entire Swiss population (8.98 million in 2023), demonstrating the company's impressive reach and market position.

Digitec Galaxus has more than quintupled its customer base since 2015. Particularly strong growth was observed in 2020 when the number of customers increased by around 50% due to the COVID-19 pandemic. The annual growth remained in the double digits even after 2020. The success of Digitec Galaxus is based on a broad assortment, attractive prices, and excellent availability.

The impressive reach and continuous growth make Digitec Galaxus an attractive marketplace for retailers aiming to succeed both nationally and internationally.

What are the current sales figures and statistics of Digitec Galaxus?

Digitec Galaxus reports impressive sales figures and strong growth in various areas:

Customer Segments and Growth

• Switzerland: In Switzerland, the number of active customers increased by 12% in 2023, reaching 3.06 million.

• EU Markets: Growth in European markets was even more pronounced, with active customers rising by 39% to 1.03 million. The Galaxus platform has now expanded to Germany, Austria, France, Italy, Belgium, and the Netherlands, with a current focus on Germany and Austria.

• Shopping Habits: More than half of customers now shop using a smartphone, compared to just 20% in early 2016 when most purchases were made via computer.

Sales Trends at Galaxus 2023

• Consumer Electronics & IT: Galaxus has a strong presence in Consumer Electronics and IT, a strength rooted in Digitec's history.

• Beauty and Health: Sales in the Beauty and Health category increased by nearly 50%.

• Home & Living: Galaxus also saw significant growth in the Home & Living category, both in terms of assortment size and revenue.

• Sports: The Sports segment also performed well, with notable sales growth and an expanded product range.

• Fashion: The Fashion segment still has room for growth. Currently, major players like Zalando, Asos, H&M, and Zara dominate the market. Galaxus has potential for further expansion in this area.

• DIY and Garden: In 2023, Galaxus sold over 20% more products from the "DIY & Garden" category.

• Food: Revenue in the supermarket segment increased by 70% from 2022 to 2023.

Galaxus is not only experiencing steady growth but also an increasing market presence in Europe. The platform benefits from its extensive product range and commitment to transparency and customer service.

What are the conditions for sellers on Digitec Galaxus?

When selling on Digitec Galaxus, the largest online marketplace in Switzerland, all sellers must meet uniform conditions, with additional specific requirements for international participants.

General conditions for sellers:

• Contractual relationship: The purchase agreement is made directly between the seller and the end customer. Digitec Galaxus acts solely as an intermediary and handles product data management, order processing, and the entire payment process.

• Technical integration: For efficient cooperation, sellers must have an electronic connection via an interface. This can be either a partial automation (manually uploading current product data, manually processing orders) or a full automation (complete integration of product and order data).

• Cost structure: There are no base fees or initial costs. Instead, variable sales fees apply, which differ depending on the product category.

• Selection criteria: Digitec Galaxus carefully selects its sellers to ensure that the products offered meet customer expectations and contribute to strengthening the brand image. Adherence to these standards is crucial for gaining customer trust and ensuring a consistently high-quality shopping experience on the platform. Digitec Galaxus does not accept new suppliers or sellers if the product range is deemed too small or if the requirements for quality and reliability are not sufficiently met.

Special conditions and challenges for international sellers:

• Technical integration: International sellers must ensure that their IT infrastructure meets the technical requirements of Digitec Galaxus. A connection via well-known platforms such as Magento 2, Shopify, or middleware such as ChannelEngine is required.

• Legal and tax requirements: Sellers outside of Switzerland must meet additional legal and tax requirements that must be considered for international sales. These include, for example, proper handling of VAT and customs regulations.

• Currency and payment management: Integration into the payment system of Digitec Galaxus must function seamlessly to ensure smooth processing of payments and refunds. International sellers must manage potential currency conversions and currency risks.

Are there any fees and commissions on Digitec Galaxus?

On Digitec Galaxus, as a seller, you will incur fees and commissions. Here is a detailed overview of the marketplace fee structure:

1. No base fees or setup costs: Sellers do not have to pay fixed base or setup fees to offer their products on Digitec Galaxus. This means that there are no financial barriers to entry in becoming a seller on the platform.

2. Variable sales fees: Instead, Digitec Galaxus only charges variable sales fees, which are based on the sale price of the items. These fees only apply when a product is actually sold, meaning that payment is only required for actual sales.

3. Percentage-based fees: The sales fee varies depending on the product category. This means that the fee applied to each sale is calculated as a percentage of the sale price of the respective product. The exact percentages differ depending on the type of product and are detailed in the specific sales conditions of Digitec Galaxus.

This fee structure offers you, as a seller, great flexibility and minimizes your financial risk, as costs only arise when you actually generate sales.

How can you list products on Digitec Galaxus?

To offer products on Digitec Galaxus, you can either act as a retailer or a supplier. Each model has its own requirements and advantages.

1. Becoming a Retailer on Digitec Galaxus:

As a retailer on Digitec Galaxus, you sell your products directly to end customers via the platform. You are responsible for shipping and pay a commission on each order to Digitec Galaxus. This model is similar to Amazon's "Merchant" model. The advantage of this approach is that you retain control over the shipping and storage of your products and can present your brand directly to customers.

2. Becoming a Supplier for Digitec Galaxus:

As a supplier, you deliver your products directly to Digitec Galaxus' central warehouses. From there, Digitec Galaxus handles all shipping to end customers. The advantage of this model is that you benefit from the extensive logistics and large reach of Digitec Galaxus, as the platform manages the entire shipping process for you.

An example of a distribution partner that uses both models is SURS AG. They operate both a retailer and supplier account with Digitec Galaxus. This is rare because most partners focus on either the retailer or supplier model, as using both models requires high standards for product data, data transmission, and delivery capability.

Working with a Distributor

If you are unable to meet the requirements of Digitec Galaxus on your own, you have the option to collaborate with a distributor for Switzerland. Digitec Galaxus does not accept many brands and retailers if they do not meet the minimum requirements – such as high-quality product data, reliable data transmission, and a certain level of delivery capability. In such cases, SURS can assist you. This means that SURS will list your products on Digitec Galaxus and manage the entire shipping process. This allows you to still be present on Digitec Galaxus and benefit from the vast reach of the marketplace without having to fulfill all the operational requirements yourself.

What are the import regulations for Digitec Galaxus?

Selling on Digitec Galaxus to Switzerland is subject to special import regulations that present some challenges due to Switzerland's unique relationship with the EU. Since Switzerland is not a member of the European Union, independent customs regulations apply to the movement of goods. As a retailer, you need to ensure that your products comply with Swiss laws for cross-border trade and are correctly cleared through customs.

Support from Distributors

Another issue you might face without the support of a distributor is the customs duties involved. These can be efficiently handled through collaborating with a distributor:

• Logistics and Customs Handling: A distributor like SURS can take care of the entire logistics and customs process.

• Avoiding Customs Issues: Retailers do not have to deal with Switzerland's complicated customs regulations, which simplifies the import process.

In summary, working with a distributor significantly eases the customs handling process. It also enables EU retailers to efficiently enter the Swiss market, making selling on Digitec Galaxus much more attractive for you.

What is the best way for non-Swiss retailers to sell on Digitec Galaxus?

If you want to be present on Digitec Galaxus as an international retailer but lack the capacity to meet the strict requirements of the Swiss market independently, a distributor like SURS can provide the ideal solution. SURS takes care of the entire listing of your products, storage, and shipping to end customers:

Benefits of Working with SURS AG

• Customs and Import Handling: SURS takes care of all the customs formalities, ensuring that your products are smoothly imported into Switzerland.

• Storage and Logistics: Your goods are professionally stored in the company’s own warehouses and efficiently managed, avoiding storage costs and logistical challenges.

• Product Launches: SURS supports you with the successful launch of your products on Digitec Galaxus by managing the entire process from product listing to order fulfillment.

• Streamlined Market Entry: Using infrastructure like the existing retailer and supplier accounts, and the expertise of SURS, significantly eases entry into the Swiss market, saving you time and costs.

By working with SURS AG, you can focus on what matters most – growing your business – while SURS takes care of the operational and logistical details. This way, you benefit from a strong presence on Switzerland's largest marketplace without having to deal with the market's complex requirements.

FAQs

What are the advantages of selling on Digitec Galaxus?

Sellers benefit from a large customer base, extensive reach, and comprehensive marketing. Digitec Galaxus handles customer service and payment processing, offering professional product management and efficient logistics solutions, making it easier to get started.

How does the sales process work on Digitec Galaxus?

Sellers can either sell directly to end customers or store their products in Digitec Galaxus central warehouses, from where Digitec Galaxus takes care of shipping. Technical integration is done via interfaces or platforms like Magento or Shopify.

What are the requirements for sellers on Digitec Galaxus?

Sellers must provide electronic connectivity and pay variable sales fees. There are no basic fees. International sellers must meet additional legal and tax requirements, including customs processing.

How can international sellers sell on Digitec Galaxus?

International sellers leverage the infrastructure and expertise of a distribution partner like SURS, which handles listing, storage, and shipping to facilitate market entry and customs clearance challenges.

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