Should Your Pet Products Be Available Direct to Consumer or Through Retail?

Direct-to-consumer (DTC) marketing is becoming ever more valuable to pet product brands. This is in large part due to e-commerce and shoppable social media’s increase in popularity. This approach allows brands to go directly to consumers, skipping traditional retail channels. Despite its advantages,direct to consumer marketing also has drawbacks to consider.

Advantages of DTC selling

Direct-to-consumer brands have grown in popularity recently due to the control companies gain over their brand image. By selling directly to consumers, companies are able to determine how and when products are shown and marketed. This is preferable to relying on third-party retailers as happens withretail selling. An example of this is Chewy, which has built a strong reputation for its excellent customer service and personalized recommendations. This has enabled them to give consumers a consistent, positive experience with the brand.

Pet companies are capitalizing on direct-to-consumer selling to communicate with customers. By collecting data such as purchasing habits, brands can tailor products and marketing to the needs of the target audience. Ollie, a pet food brand, uses this method to create personalized meal plans for each pet. This approach has earned the trust of pet owners and gained Ollie a loyal following.

Direct-to-consumer selling also enables pet product brands to gather customer data. This data allows brands to customize products and marketing. An example of this is Ollie’s personalized meal plans, which ensure individual pets get the nutrients they need. Through this direct engagement, Ollie has created a loyal customer base who trust the brand for high-quality, tailored nutrition.

Direct-to-consumer businesses can also be more cost-effective for pet product companies, avoiding fees associated with shelf space and third-party retailers. For example, Nom Nom has been able to offer high-quality, freshly prepared pet food at a lower cost than traditional brands through a direct-to-consumer sales model.

Disadvantages of DTC selling

Direct-to-consumer (DTC) selling offers more control over brand image and customer engagement for pet product companies, yet could limit reach. Without traditional retail distribution networks, companies may fail to attract new customers – like those preferring to shop in physical stores. This is particularly true for small DTC pet product firms only selling online, or in rural areas with fewer online shoppers. Logistical complications are also among the challenges of DTC selling.

Fulfillment is essential for businesses, requiring infrastructure and resources that can be costly. Small businesses may not have the means to build out the necessary structure for direct-to-consumer (DTC) sales, making it less competitive. DTC selling enables companies to build direct relationships with customers but it limits their ability in acquiring new ones due to lack of reach through retailers and wholesalers.