Even as little as three years ago the idea of launching an ecommerce website for their independent retail business was an afterthought for most retailers. To be honest, most local independent retailers were still trying to figure out how to effectively use a basic informational website and social media to their advantage. Yet, those days are behind us now and they’re moving even further into the past. The local independent pet store needs to offer online ordering and local delivery… and they need to do it fast.
The Stats
By early 2014, experts were starting to take notice of trends in the arena of online pet food sales. Statistics reported in early 2014 were identifying the fact that online pet food sales had increased by an average of 7.8% per year over the past five years. This was an early indication that improvements in technology, infrastructure and consumer acumen meant that pet food sales were poised to soar.
Statistics are indicating that 33% of pet parents are buying at least some pet products online. Regarding pet food, statistics show that 12% of dog owners and 12% of cat owners are having their pet’s food delivered to their how on a regular basis. That means that they are ordering online with their credit card on a recurring basis to have food delivered to their home.
In the year 2015 online pet food sales reached $760 million. That was an increase of 55% from 2014.
According to a report from Business Insider’s BI Intelligence research service, the US same-day delivery market could grow from $.10 billion in 2014 to $4.03 billion in 2018 at an annual growth rate of 150%.
The Reasons
Why are people switching to online ordering and pet food delivery?
- Convenience of shopping anytime, any place
- Price Shopping
- Product Selection
- Find and try new products
- Convenient for “refill’ purchases
- Easy to find extra product information and reviews
- Easy to compare prices
The Competitors
Here’s the bad news for local pet stores- they’ve been too slow to move on ecommerce.
As it stands currently, 50% of online pet food sales goes to Chewy.com and 35% of online pet food sales goes to Amazon.com. That leaves for the other 15% for everyone else including Petsmart and Petco (which both are trying to create effective online sales channels).
The market for online pet food sales is growing. For independent retailers, this is a threat that can be transformed into a great opportunity. By leveraging a local presence, a delivery van and a quality website, your pet store can out compete the big boxes when it comes to fulfilling online orders in your local market.
Companies like Liquid, Lightspeed and Shopify have made this possible. If you’re interested in learning about how to pull this off for your business, call us today. We are ready and excited to help.
Thanks for the help from our sources!
Online Pet Food Sales and Home Delivery Expected to Grow
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