Competing With Amazon & Chewy

It’s harder than ever to be a retailer these days. Throw in consumer focused marketplaces like Amazon and Chewy and you have a challenge that’s unprecedented in recent history. As business continues to change at a rapid clip we are forced to focus on new and innovative solutions that could provide an edge for the independent players in the market.

It’s been long known that independent retailers cannot compete with Amazon on a price basis. The same thing goes for creators who wish to get their products into stores and shelves nationwide. Sure you could reach out to a large retailer such as Petco but they’ll ask you to provide your goods at the manufacturing rate. It’s terms like that which force creators and retailers to raise prices in an attempt to make money somewhere within their respective supply chains.

While it may seem like there are no new options, it’s worth noting that we’ve compiled a list of non-technical competitive advantages for both independent retailers and creators. It’s our goal to make sure this information spreads in an effort to bolster the prospects of small businesses everywhere.

Before getting into our break down we’d like to call attention to one thing, communication. This is such an important feature for any small business. Being able to provide an open line of communication is the difference between knowing and being left in the dark. We implore all small businesses to ask themselves if they’re taking advantage of this one process Amazon & Chewy will never be able to best them on.

Top Six Small Pet Business Competitive Advantages

• Independents & Specialty Products

Start focusing on specialty products. This is a broad category which large retailers have trouble breaking into. Often times specialty product manufacturers (think low production runs & hyper-niche products) won’t want to work with big box retailers or businesses like Chewy out of fear of brand & margin depreciation. As an independent retailer you’re in the unique position to build relationships with these creators and the many consumers who want their products.

In recent years, as hand-made products have skyrocketed in popularity, it has in turn directed customers to products that are vastly more personalized and unique. This is where niche product development thrives as well as the customers seeking them.

• Personalized Experiences

This almost goes without saying. Working with someone face-to-face or over the phone allows for a more intimate experience. Whether in good times or bad people want to feel like they’re being cared for and one of the biggest problems large web based retailers face is there mechanical feel/perception. In these situations consumers know they’re prioritized by the size of their shopping cart; independent retailers can easily overcome this with a warm welcome and by answering a few questions. Combine this approach with product requests & niche inventory and you have a business model far more resilient than the average store.

• Customer Service

Much like a personalized experience this is all about what you can provide for the consumer with a face-to-face (or digital) experience. Many retailers know their full inventory front & back and if you don’t it’s worthwhile to put some time and effort into it. Not only is this helpful for working with consumers who are in a rush or have low attention spans, it also gives you an advantage that large retailers cannot offer. It’s the difference between hearing the consumers needs and anticipating them.

• Communication (with consumers)

Communication is key. Some consumers want to be left alone as they shop but many would like the input of an expert. Establishing an open line of communication and taking an email at checkout can do wonders for both compiling a mailing list & knowing the products your market wants. Don’t assume consumers all want the same thing, creating one memorable interaction is all it takes to bring them back to your store later.

• Animal Shelters

This one is very near to us. Working with animal shelters whether it’s on your premise or just offering your assistance on the weekend can do wonders for both your brand and customer base. Not only does it feel good to give back and help animals find their forever homes but where do you think all those new pet owners are getting their products from? Most communities have at least one animal shelter, see what you could do and meet some new pet owners. Not just that, try donating some old inventory to the shelters. Beds, food, sweaters, and cleaning products are always in need. It’s no coincidence these products are often thrown into storage or left to gather dust when they don’t sell. Instead, take the tax break and relieve your shelves of some old inventory.

• Branding & First Impressions

The way we make sense of the world is mainly through associations and simplifications. We learn to understand something by applying those associations (an emotion or memory) to it, and when we run into that certain something again, it triggers that same association. Brand perception operates the same way. We affix dirty restaurants with bad food, ugly websites with distrust, poorly designed establishments with underwhelming quality, and the list goes on. The point is, if you have a great quality product the perception of that product and environment in which they purchase it must be to the same standard. As a retailer your first product should be the store you greet them with.

Running a small business might be difficult but it doesn’t have to be impossible. Now more than ever small businesses have the need and the opportunity to differentiate themselves from the competition. Moving forward we believe competitive advantages will grow from an increased quality of service rather than minimal cost savings. I’d be worried if I were Amazon or Chewy.

ShopKetti is a wholesale platform connecting independent creators and retailers in the pet industry. Explore the community and join for free at shopketti.com