Vinted morphs into Europe-wide B2B logistics operator
Lithuanian group Vinted has launched a new digital platform that coordinates its various partner carriers, operated by a newly created logistics arm called Vinted Go. A logistics network that the group now intends to put at the disposal of third-party companies, beginning a shift from a C2C model to a B2B one.
The Vinted Go organisation can take care of both national and cross-border shipments across Europe, relying on a network of partner carriers that utilises 220,000 pick-up/drop-off points (PUDOs) in 14 countries, ensuring average delivery times of 2 to 3 days nationally, and 3 to 5 days across borders. Vinted Go is initially intended to cater for the shipment of small and medium-sized articles, for example clothes, sporting accessories, household items and office supplies for remote working.
“Vinted Go has a strong pool of potential new clients looking to increase their shipment operations via pick-up and drop-off points in Spain, Italy, France, the UK, Benelux and Germany,” said Vinted Go, underlining that tapping its network would allow companies to avoid having to adopt multi-tier solutions in association with local carriers.
The announcement came a few weeks after Vinted Go said that it was deploying its own European network of automated deliveries. Vinted Go chose to start in its main market, France, with initial shipments in Paris and the Île-de-France region, using Franprix (Monoprix) and Carrefour stores.
“Thanks to our network of carriers and delivery partners, our team is able to link together a fragmented logistics infrastructure,” said Vinted Go’s Vice-President Vytautas Atkocaitis. “The new service deployed by Vinted Go offers more convenient and cost-effective delivery solutions. We are a digital tech company that aims to make international e-commerce as smooth as possible. Launching our own B2B digital delivery platform is an important step toward this goal,” he added.
To understand Vinted's strategic approach, it is worth remembering that the group does not consider itself a fashion company, but a “simple” digital networking specialist. Before the pandemic, the Vinted Group’s CEO Thomas Plantenga said that Vinted would eventually become profitable by attracting an increasing number of vendors, until it could achieve financial equilibrium.
Despite the boost given by the pandemic to online sales, and the massive wardrobe streamlining that lockdowns have prompted consumers to carry out, this equilibrium has not yet been achieved. In 2021, the group posted a 63% revenue rise to reach €245 million, but at the same time it recorded a loss of €100 million, five times greater than a year before. Losses that were caused primarily by the group’s investment in logistics, as Vinted is seeking growth opportunities as a B2B service provider.
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