Everything You Need to Know About Building a Pet Products Marketplace

Updated On: 5th January 2024

The modern lifestyle has created unprecedented opportunities in various niche markets of which the online pet products business was previously overlooked. However, unlike a few years back, the pet care industry has evolved. Several factors propelled the demand for pet-related products like an increased number of pet owners and a heightened focus on pet health and wellness. Statistics define these trends:

• The pet-related products market continues to evolve with more than 66% of US homeowners owning a pet.
• A report by the American Pets Product Association showcases total pet spending in the US has reached $143.6 billion in 2023.

Besides, the convenience and accessibility offered by smartphones have significantly encouraged the proliferation of online pet product marketplaces. Key players like Chewy, Petco, and more have played pivotal roles in facilitating this market expansion, offering diverse product selections and convenient shopping experiences to pet owners.

So, given the trends eminently driving pet product sales, it seems a great idea for aspiring entrepreneurs to delve into this lucrative market.

 

Popular Players in the Online Pet Products Industry

Let’s explore some prominent players dominating the online pet products industry.

PetSmart

PetSmart, founded in 1986 stands as a prominent player in the online pet supplies market offering diverse products and online services like grooming and veterinary care in addition to its numerous brick-and-mortar locations. It offers a wide range of pet supplies for birds, cats, fish, dogs, and other small pets.

Their loyalty program, Pet Treats, boosts customer engagement through personalized offers and discounts, setting them apart in customer retention strategies. Moreover, PetSmart provides convenient options like ordering online and picking up items bought from physical stores, and scheduling an appointment at their grooming salons.

PETCO

Founded in 1956, PETCO has positioned itself as a prominent player in the online pet supplies market with revenue exceeding $6 billion. The marketplace is ideally known for its broad array of products along with grooming, veterinary services, and pet adoptions.

PETCO’s subscription-based repeat delivery service simplifies purchases, ensuring customer convenience and loyalty. Additionally, the marketplace provides same-day shipping for most purchases, along with special savings for curbside pickup and recurring deliveries.

Chewy

Chewy is an online pet product marketplace founded in 2011 with a vision of enabling pet owners to shop for their furry companions. With time, it evolved into a comprehensive platform reporting around $10.099B in revenue in 2023.

Chewy emphasizes personalized customer care, including 24/7 support and a wide range of pet-related products like foods, beds, toys, and more. Their auto-ship feature offers scheduled deliveries, ensuring pet supplies arrive on time. Moreover, its dedication to pet wellness, coupled with subscription services and speedy delivery, distinguishes Chewy as a trusted and convenient marketplace for pet owners.

PetFlow

PetFlow, a leading pet products marketplace in the US, has evolved into a comprehensive hub catering to all pet needs. Its beginning stemmed from a desire to simplify pet ownership by offering a wide array of quality products conveniently delivered to doorsteps.

The key aspect that sets PetFlow apart from other marketplaces is its expansive array of pet supplies. Spanning from pet treats and toys to grooming products, the platform offers a wide selection catering to dogs, birds, cats, and other small animals. Exceptional customer service coupled with a user-friendly interface and commitment to pet well-being set it apart as a go-to destination for pet parents everywhere.

How to Start an Online Pet Products Business?

There’s nothing more fulfilling than starting a business in an industry that is in demand and is equally rewarding. The pet products marketplace can be a business that provides entrepreneurs with income for years to come. LetÔÇÖs look at some critical steps to create a pet products marketplace.

Conduct Market Research

Before entering the business, you must learn about the pet industry. Research and analyze the pet store market to identify the target audience and gain in-depth insights into your competitors. Also, knowing the trends of the industry like the most bought items can offer a competitive edge in the market.

Pick Your Business Vertical

Pet products businesses come in different forms, some provide everyday supplies like food, bowls, and toys that are in demand while others offer unique and innovative products. The goal of every business is to find a niche that is sustainable and distinct enough to let them uniquely brand their business.

Pet Supplies

Every pet owner requires pet supplies like food bowls, toys, and leashes. Although the competition is immense in this domain, entrepreneurs should not get tricked by missing the huge opportunity here. Usually, a market overflowing with options makes it hard for customers to decide what to purchase resulting in no purchase at all.

Startups, in this scenario, can come up with one-of-a-kind brands with a USP putting them in a better position to let customers purchase from them. Pet supplies include:

• Food bowls, leashes
• Houses, cages, beds, litter boxes
• Collars, combs
• Toys
• Birdhouse, bird feeders
• Fish bowls, aquariums

Pet Food/Treats

The pet food market is also growing immensely as pet owners are increasingly becoming health conscious and like to provide their pets with the best kind of food. This provides an opportunity to cater to them with healthier options for their pets. Innovative food products that are nutritious and healthy will surely attract pet owners.

Customized treats for pets with dietary restrictions can also be considered. Soft treats like kibble, dried meats, and a whole lot of things can also be thought of to set your business apart and unique.

Pet Clothes/Apparel

Pet apparel can also be an exciting new avenue to explore as clothing for pets has become increasingly popular over the last few years. Pet owners are particular about their petsÔÇÖ fashion choices as their own and to cater to these fashion choices there are lots of shirts, outfits, and accessories designed for them. This niche is easy to reign as there is not much competition. Moreover, the nature of this low-risk business venture allows business owners to focus on marketing their businesses.

Innovative Products

New innovative products in the market based on the needs of pet lovers can also be sold on marketplaces. These products can be anything from creative pet accessories to health care products and luxury pet products.

• Pet GPS tracker
• Car seat for home and travel
• Food-preserving containers/boxes
• Cleansing pet bathers

The numbers and the type of pet products businesses show that there is tremendous growth in the market size and still a huge room for growth. However, a significant thing to consider is which trends will drive the growth. LetÔÇÖs have a quick look at the trends.

Choose the Revenue Streams

Every business is created to generate revenue through it, so it is significant to have clear revenue streams. There are multiple revenue generation channels and a couple or more can be combined to serve the business better. Here are the options for possible revenue channels:

Commission

A percentage cut from the revenue of sellers on the marketplace. For instance, Petco charges a percentage from sellers for leveraging its platform to reach a larger customer base. Thus, ensuring a continuous flow of revenue while providing a diverse selection of pet products.

Advertisement

Extra percentage cut from sellers to list them on the most prominent places for more visibility. For example, PetSmart uses advertisements as an additional revenue stream. Vendors can pay an extra percentage to have their products displayed on PetsmartÔÇÖs website. It enhances product visibility, effectively attracting more customers and generating additional income.

Merchandise

Businesses can choose to offer company-themed branded merchandise to boost revenue. For instance, Chewy has its respective branded merchandise, ranging from pet supplies to apparel, creating an additional revenue stream while strengthening brand loyalty among its customer base.

Decide Features to Include

Cutting-edge features in the marketplace make it more unique and feature-rich which ultimately leads to being more liked by the users and target audience. Here are some of the basic features of a pet products marketplace for each of its users:

Customers

• Register via email or social media profile
• Manage Personal Profile and Settings
• Search and view Pet products
• Secure online payments
• Manage Profile
• Push updates/notifications
• Reviews and Ratings
• Mobile wallet integration for quick payments
• Get customer support via Chat or Call

Sellers

• Register and Login
• Create & Manage Profile
• Seller Dashboard
• Manage products
• Accept Payments
• Chat with Customers
• View/Get ratings and Review Alert
• Generate Revenue Analysis Reports

Admin

• Secure Login
• Manage Customers & Sellers
• Manage Purchases/Commission/Offers/Promo/Discounts
• Create/Update FAQ, Term, and Policies
• Provide Technical & Customer Support
• View & Manage Billing/Invoice/Reports
• Manage Reviews, Ratings & Feedback
• Verify Sellers
• Chat Module To Provide Customer Support

In addition to this, below mentioned are some advanced features that can also be integrated into a pet products marketplace.

• Social Media Integration
• Loyalty Rewards
• Product Comparison
• In-app Chat
• Revenue Analytics
• Seller Verification
• 360-degree Products View
• Voice Assistant
• Social Sharing
• Multiple Payment Options
• Multilingual
• Multi-Currency Support

Choose Development Approach

The last and final step is to select the development approach. The two development approaches to building a pet products marketplace are either developing the platform from scratch or investing in a turnkey solution.

1. Custom-Built Approach

Developing from scratch requires a development team that will include designers, developers, testers, and many more. Also, the time and cost of developing from scratch are higher when compared to a readymade solution.

2. Leverage Readymade Software

The readymade eCommerce software is equipped with core marketplace features and functionalities, decreasing the cost and time associated with the development process. Moreover, it reduces the time-to-market of the platform, incorporating the unique capabilities that resonate with the user’s wants.

Now that you have explored the key players in the pet supplies industry and are looking to build a similar marketplace to aforementioned players like Chewy, Petco, and more, it would be ideal to utilize readymade eCommerce software. Yo!Kart is one such off-the-shelf eCommerce solution that can be used to build a pet products marketplace with all the features mentioned above. This is the ultimate customizable solution for business owners who are looking for a feasible product for their pet products store.

Conclusion

There’s a whole world of opportunities in the pet products market with multiple business verticals to hop into, from pet treats to dog grooming and more. However, it is essential to assess the key players and their strategies that help them flourish and position themselves in the industry. Additionally, leveraging Yo!Kart can help build a marketplace that is equipped with essential functionalities and facilitates efficient buying and selling of pet-related products.

FAQs

Q1.: What are the essential features of the pet product marketplace?

Ans: The essential features of the pet product marketplace include a product catalog with a diverse array of offerings, a user-friendly interface, personalized recommendations, and secure payment options. Additionally, pet-specific guides, expert advice, and community forums promote engagement and education among pet owners. Also, remember a robust platform with quality assurance and customer support is essential to build trust and reliability.

Q2.: How much does it cost to build a pet products marketplace like Chewy or Petco?

Ans: The cost of creating a pet products marketplace like Chewy or Petco varies on multiple criteria including the specific feature set desired, the intricacy of the website, and the requisite coding proficiency and technical knowledge. Additionally, the selected development approach whether custom-built or utilizing readymade eCommerce software will impact the cost. For detailed pricing, visit here.

Q3.: What type of pet products can I find on the online pet products marketplace?

Ans: An online pet products marketplace offers a wide range array of items catering to various pet owner needs. You can explore essentials such as food, toys, treats, accessories, grooming supplies, beds, and healthcare essentials for cats, dogs, fishes, birds, and more. Additionally, you can explore specialty items such as personalized items, cool clothes, and innovative gadgets designed to enhance your petÔÇÖs well-being and happiness.