“The Amazon Effect” series breaks down specific product groups,

compares Amazon’s performance in that category to total retail

sales (online and offline) and considers the effect Amazon has on

that specific industry as a whole. We’ve explored the effect

Amazon is having on the toys, grocery, housewares and beauty

 industries; in this latest edition, we explore how Amazon has

impacted the U.S. pet products market.

Pet Products: The Amazon EffectBy Nathan Rigby, VP Sales & Marketing at One Click Retail

Americans are spending more than ever on pet products, driven

by the close emotional bonds people share with their animals.

Now occupying more than half of U.S. households according to

the U.S. Pet Market Outlook, 2016-2017, pets today are seen as

family members in their own right. Naturally, Americans who

see their pets as their own children are willing to spend more

on them, and savvy marketers are picking up on this trend.

The Numbers

1. $67.5 billion: The total value of the U.S. pet product market.

2. $2 billion: com’s U.S. pet product sales.

3. 4%: The YoY growth of the U.S. pet product market.

4. 40%: The YoY growth of Amazon.com’s U.S. Pet Product sales.

The U.S. domestic pet product market has experienced steady year-

over-year growth for decades, but the demographic has changed

rapidly in recent years. Urban young professionals are now spending

the most on their pets; these people are highly tech-savvy and

spend much more of their time online, many even going as far as to

open Instagram accounts for their animals, leading to the popular

#dogsofinstagram and #catsofinstagram” hashtags.

Look no further than Amazon.com’s YoY growth rate for evidence of

this demographic shift: it’s 10x the growth rate of the U.S. domestic

market. Today’s pet owners are highly connected and responsible

for driving the market toward more online sales. Let’s take a look at

which types of products consumers are turning to Amazon for and

how this trend might affect the pet products market as a whole.

No surprises here – pet food was one of the first pet products to really take

off online. Many consumers are unable or unwilling to carry large, heavy

bags of food from the store, especially among today’s younger, city-dwelling

pet owners, many of whom don’t have a driver’s license or access to a

vehicle.Leading subcategories:

Pet Food, 60%+ YoY growth. Top seller: Taste of the Wild Dry Dog Food, $25+ million in 2016 sales.

Pet Treats, 40% YoY growth. Top seller: Greenies Dental Dog Treats, nearly $10 million in 2016 sales.

1. Pet Food & Feeding Supplies: 55%+ YoY Growth

Like big bags of pet food, crates and pens are bulky and awkward, leading many people

to opt out of carrying them home from the store in favor of having them delivered by

Amazon. For other large items such as pet gates and habitats, brick-and-mortar stores

lack the shelf space to carry a wide variety, so by going on Amazon consumers are able

to find something more personalized.Leading subcategories:

Pet Crates & Pens, 35%+ YoY growth. Top seller: Midwest iCrate Double Door Crate, $6+ million in 2016 sales.

Pet Doors & Gates, 30%+ YoY growth. Top seller: Carlson Gate with Pet Door, $5+ million in 2016 sales

Small Animal Habitats, 35%+ YoY growth. Top seller: MidWest Critter Nation Animal Habitat with Stand, $3+ million in 2016 sales.

2. Habitats & Supplies: 30% YoY Growth

Another side-effect of the increased urbanization of pet ownership is an

increase in medical expenses. Indoor pets tend to live longer and many

households now own older cats and dogs requiring more medication for age-

related conditions. While Amazon is obviously not able to provide veterinary

services, it does supply many over-the-counter medications at a cheaper price.Leading subcategories:

Pet Health Care Supplies, 30%+ YoY growth. Top seller: Nutramax Dasuquin with MSM Chewables, $10+ million in 2016 sales.

Pet Pest Control Supplies, 40%+ YoY growth. Top seller: Bayer Advantage II Flea Control Treatment for Cats, $15 million in 2016 sales.

3. Health Care: 30%+ YoY Growth

Additional top-performing categories on Amazon were consistent

with these market forces. Litter & Odor, for example, experienced

45%+ YoY growth, as urban pet ownership often means limited or

non-existent yard space. Grooming, Leashes, and Training &

Behavior, each of which are more of a necessity in urban

environments, were all top-performing categories as well.

For more info on top-performing product

categories and top-selling products, please

get in touch with One Click Retail.

We can see many of the same trends reflected in the UK. The top

two product categories are the same, with only Training & Behavior

climbing above Health Care to take the third spot. The biggest

difference is that Amazon.co.uk actually holds a much larger share

of the domestic market compared to Amazon.com; in the UK,

Amazon is responsible for over 10% of the £900 million ($1.1 billion)

domestic pet products market.

Today’s pet owners are young, city-dwelling professionals, driving sales

to Amazon for a number of reasons:

• Obligated to invest more in habitat, training, litter and odor control and

medication than their rural or suburban counterparts.

• Living in smaller households with limited or non-existent yard space.

• Less likely to own a vehicle or a driver’s license.

• More tech-savvy and spending more time online.

Key Findings

Most remarkable is the 40% YoY growth rate of Amazon’s Pet Products group as a

whole, compared to the total U.S. domestic market growth of only 4%. In the UK,

Amazon already accounts for more than 10% of the entire pet products market. If

this trend continues it could reach that size in America as well. Amazon has

recognized the value of the market by adding Pet Products to the list of product

groups available for one-hour delivery in the San Francisco Bay Area, which just

goes to show that they won’t let this new demographic of young, urban “pet

parents” go untapped.

With 98% accuracy, OCR delivers the industry’s most accurate sales data to their brand

manufacturer clients selling on the world’s top eCommerce platforms. To get a glimpse of the

unique insights One Click Retail provides its customers, be sure to follow our weekly blog at

www.oneclickretail.com/insights, and following us on Twitter and LinkedIn.

One Click Retail (OCR) is a market leader in eCommerce data measurement, sales analytics and search optimization for brand manufacturers in North America, Europe and Asia. Thanks to our proprietary sales calculations that are 98.5% accurate down to the SKU level, OCR’s accuracy is unrivaled in the marketplace. The OCR Product Suite provides 1st and 3rd party business intelligence across the 30 largest retailers such as Amazon, Walmart, Target, Staples and Home Depot. The world’s top brands, such as Procter & Gamble, Panasonic, Nestle, Hamilton Beach and HP, rely on OCR insights to drive sales and profitability across eCommerce.

Founded in 2013 by eCommerce experts from Amazon, Walmart, Target, Overstock and other leading retailers, OCR was acquired in 2016 by Ascential plc (LSE: ASCL.L), a UK-based international B2B media company with a focused portfolio of market-leading events and information services products.

To learn more about how OCR can provide your brand with the competitive edge in today’s ecommerce marketplace, visit www.oneclickretail.com.

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