Sephora has become Zalando's long-term strategic partner to develop its online prestige beauty business.
The partnership will kick off in Germany in Q2 2021 and will roll out across Europe from 2022.
David Schneider, Zalando Co-CEO, said: “Beauty represents a huge and exciting opportunity for us, with the online beauty market still largely untapped in Europe.
"As a one-stop destination for fashion and lifestyle, we want to empower and inspire Zalando customers to find the perfect choice of fashion and beauty in one place and at the same time give our brand partners a platform for their digital success."
Sephora, the LVMH-owned beauty chain, said it will bring its curated offering of several thousand cosmetics products from more than 300 prestige and exclusive brands to Zalando.
Meanwhile, Zalando is offering Sephora access to its 42 million active customers in 20 markets across Europe along with its "exceptional" convenience in delivery, payments and returns service.
Martin Brok, President and CEO of Sephora, said: "This partnership illustrates our ambition to relentlessly innovate to delight our customers better than anyone else.
"Zalando, which today is the most successful online fashion platform in Europe, is the ideal partner for us to continue to inspire customers. By bringing together fashion, accessories, and prestige beauty under one roof, we will offer them the best destination to ‘look great and feel great’, in a unique premium environment.
"This partnership is a key step in our European growth strategy and illustrates our vision for the future of beauty and retail”.
The companies claim to have made "concrete long-term commitments with regards to more sustainable assortment, reducing environmental footprint in operations, as well as creating an inclusive experience for customers".