Zalando on Nov. 3 introduced Zalando Extended, a service intended to bring products from other online shops into its app, with AI-assisted checkout planned for 2027. The initiative would extend the retailer’s reach beyond merchandise it sells itself.
Westwing is the first pilot partner
In its third-quarter announcement, Zalando named home and living retailer Westwing as the first pilot partner. Their cooperation began this year. Zalando said its own AI agent would be able to complete purchases of Westwing products inside the Zalando app starting in 2027.
That checkout capability is a future plan, not an already available feature. Zalando said the service would start with categories such as bulky home goods and expand over time.
Participating shops would also be able to advertise through Zalando’s retail media business, according to the company. Zalando presented that advertising opportunity as an additional revenue source, without announcing a revenue target for Extended.
A broader platform business
Retail Gazette’s reporting placed the announcement alongside a growing partner business, which accounted for 33.6% of consumer gross merchandise volume. Retail media revenue rose nearly 18% during the quarter.
Zalando separately reported quarterly group revenue of 3.17 billion euros, up 5.1%, and adjusted earnings before interest and taxes of 106.5 million euros, up 10.6%. Those adjusted earnings are not net income: the company reported a net loss of 18 million euros.