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Pet Products E-commerce Trends: DTC, Marketplace and Omnichannel

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Pet Products E-commerce Trends: DTC, Marketplace and Omnichannel

Pet Products E-commerce Trends: DTC, Marketplace and Omnichannel

Pet Products E-commerce Trends: DTC, Marketplace and Omnichannel

E-commerce accounts for 38 percent of US pet product sales in 2024 and is projected to cross 42 percent by 2026. Within e-commerce, three distribution models compete: marketplaces (Amazon, Chewy, Walmart), direct-to-consumer (brand websites), and omnichannel (brick-and-mortar combined with online). Each has different economics, different capabilities, and different strategic fit. For a B2B buyer launching a pet product brand, choosing the right mix is a make-or-break decision. This article explains the three models and how to combine them. Written from Hefei, China, by Eviehome (Hefei Ecologie Vie Home Technology Co., Ltd.).

Marketplace channel

Amazon

The default destination for US pet product buyers. 22 percent of all US pet product sales, over 50 percent of all online pet product sales.

Pros: massive reach, proven discoverability, FBA fulfillment, trust from buyers, Prime shipping expectation met by default.

Cons: 15 percent referral fee, USD 5 to 15 FBA fee, aggressive PPC costs (USD 1.50 to 5 per click in competitive categories), counterfeit risk, rank volatility, competitors can see your data.

Recommended for: first-time brands, volume-driven strategies, any category where Amazon is the buyer default.

Chewy

The second-largest US pet marketplace, now owned by PetSmart parent. Strong subscription model (Autoship).

Pros: loyal customer base, high Autoship conversion (recurring revenue), strong customer service reputation, less crowded than Amazon.

Cons: invitation-only for 1P (wholesale to Chewy) relationships, 3P marketplace is smaller, less visibility than Amazon.

Recommended for: brands with subscription-friendly products (food, litter, consumables), pet specialty positioning.

Walmart Marketplace

Growing marketplace with 3 percent of US pet product online sales. Lower volume than Amazon but less competition.

Pros: lower PPC costs, less competition, Walmart+ shipping option, direct pipeline to in-store Walmart if you scale.

Cons: lower volume, less mature seller tools, approval required.

Recommended for: established brands looking to diversify off Amazon, brands with mass-market positioning.

Target Plus, eBay, other marketplaces

Smaller platforms with specific strengths. Target Plus has premium brand positioning. eBay has long-tail product discovery. Worth adding incrementally once the main channels are working.

Direct-to-consumer (DTC) channel

Brand website with Shopify

A Shopify store where customers buy directly from your brand. You own the customer relationship, the data, the email list, and the margins.

Pros: full brand control, higher margins (no marketplace fee), direct customer relationship, email list ownership, subscription models work well.

Cons: traffic acquisition is expensive (Facebook/Instagram ads, Google Ads, SEO takes time), conversion rates are lower than Amazon, you handle fulfillment and customer service.

Recommended for: brands with strong positioning, premium products, subscription business models, long-term brand building.

Launch strategy for DTC

  1. Build a simple Shopify store with 5 to 10 product pages
  2. Start with paid social ads (Facebook, Instagram, TikTok) to drive traffic
  3. Build an email list from the first day
  4. Invest in SEO content marketing for long-term organic traffic
  5. Launch a subscription offer to capture recurring revenue
  6. Use retargeting ads for cart abandoners
  7. Build community on social media or a branded forum

DTC typically takes 12 to 18 months to become cash-flow positive, longer than marketplace. But the LTV is higher and the brand is more defensible.

Omnichannel: physical plus digital

Brick-and-mortar pet retail

PetSmart, Petco, Pet Supplies Plus in the US. Fressnapf, Zooplus stores, Maxi Zoo in Europe. Specialty independents everywhere.

Pros: foot traffic, impulse purchases, trial of premium products, brand discovery.

Cons: wholesale margins (30 to 40 percent off retail), long payment terms (net 60 to 90), shelf space competition, slotting fees, 6 to 12 month sales cycle to get in.

Recommended for: established brands with USD 500 000+ in online sales proving demand, products that benefit from in-person trial.

Integration with online

Omnichannel done right means consistent branding, pricing (within MAP limits), and experience across both channels. A customer who discovers your brand at PetSmart should find the same brand story, packaging, and quality on your website and on Amazon.

Channel economics comparison

DimensionAmazonDTC ShopifyPhysical retail
Setup costUSD 1 to 3kUSD 5 to 15kUSD 20k+
Time to first sale2 to 4 weeks1 to 2 months6 to 12 months
Gross margin30 to 45%55 to 70%25 to 35%
Traffic acquisition costUSD 15 to 50 per saleUSD 25 to 80 per saleRetailer handles
Customer data ownershipLimitedFullNone
Subscription supportSubscribe and SaveFull controlLimited
Brand defensibilityLowHighMedium
Scalability ceilingVery highHighMedium

The right mix by brand stage

Year 1 (launch)

  • Primary: Amazon (80 percent of focus)
  • Secondary: DTC Shopify (20 percent, email capture)
  • Skip: physical retail, Walmart, Chewy (too early)

Year 2 (scale)

  • Primary: Amazon (60 percent)
  • Secondary: DTC Shopify (25 percent)
  • Add: Walmart, Chewy (10 percent)
  • Explore: Target Plus, specialty retailers (5 percent)

Year 3+ (omnichannel)

  • Balanced: Amazon 40 percent, DTC 30 percent, other marketplaces 15 percent, physical retail 15 percent

E-commerce trends in 2026

1. DTC rebound

After a difficult 2022 to 2024 (rising CAC, iOS 14 ad attribution issues), DTC is rebounding as brands figure out profitable customer acquisition via TikTok, influencer marketing, and community building.

2. Amazon PPC inflation

Click costs on Amazon continue to rise. Profitability on Amazon requires better margins or lower ACOS than in 2022 to 2023.

3. Chewy’s marketplace expansion

Chewy has been opening its marketplace to more sellers in 2024 to 2026. Opportunity for brands with subscription products.

4. Social commerce

TikTok Shop and Instagram Shopping are real channels now, not experiments. Pet products perform well in short-form video commerce.

5. Subscription dominance

Chewy Autoship, Amazon Subscribe and Save, and brand-direct subscriptions are winning share. Non-subscription brands are at a disadvantage.

6. Retail media networks

Amazon Advertising, Walmart Connect, Chewy Media Solutions are all growing. Retail media ad spend can reduce overall CAC.

Frequently asked questions

Should a new brand launch on Amazon first or Shopify first?

Amazon first. Faster validation, lower marketing cost, proven traffic. Add Shopify in parallel for brand presence and email capture, but expect it to contribute 10 to 20 percent of year 1 revenue.

Is physical retail still worth pursuing for pet products?

Yes for established brands. It offers brand discovery and trial that online cannot replicate. Not worth the effort in year 1 for new brands.

Does Eviehome help customers with channel strategy?

Yes. We share channel economics, customer data, and launch playbooks with OEM customers. Contact Ryan Lau for channel consultation.

About Eviehome

Eviehome supports OEM customers across Amazon, DTC, Chewy, Walmart and physical retail channels. Based in Hefei, China since 2014.

Contact Ryan Lau at ryanlau@eviehometech.com, on WhatsApp at +86 199 5653 0913, or use the contact form.

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