Sales of 62.5 billion in 9 months! Well-known e-commerce platforms are making a lot of money

Its market share once surpassed Amazon, and it achieved another great success in the third quarter of this year.

American pet e-commerce giant Chewy recently released its third-quarter financial report this year, with performance showing a steady upward trend.

In recent years, the pet economy has gradually risen, and more and more "poop scoopers" have placed a lot of emotions on their "furry children" and are willing to spend more on them.

Net sales exceeded $8.6 billion, and it made a lot of money in the first three quarters

Chewy, headquartered in Florida , was founded in 2011 and went public in 2019. In just a few years, it has become the largest pet vertical e-commerce platform in the United States .

In the second quarter of this year, Chewy's net sales reached US$2.859 billion (approximately RMB 20.7 billion), a year-on-year increase of 2.6%.

Chewy has seized the opportunity of the booming " IT economy " . In the third quarter of this year, Chewy continued its growth momentum in the second quarter and the data is still impressive.

Specifically, Chewy's sales in the third quarter reached US$2.88 billion (approximately RMB 20.9 billion), a year-on-year increase of 4.8%; net income reached US$3.93 million (approximately RMB 28.53 million), a year-on-year increase of 111.1%.

According to the published financial report, in the first three quarters of this year, Chewy's cumulative net sales reached US$8.614 billion (about RMB 62.5 billion), a year-on-year increase of 3.51%. The cumulative net profit in the first three quarters reached US$370 million (about RMB 2.7 billion), a year-on-year increase of 4708.24%.

In addition, it is predicted that Chewy's performance will continue to grow in the fourth quarter of this year, with revenue expected to be between US$3.18 billion and US$3.20 billion, a year-on-year increase of 13%.

Chewy 's success did not happen overnight. As early as 2017, it was noticed by Petsmart, the largest comprehensive pet service company in the United States, which invested a high price of US$3.35 billion to acquire Chewy, setting a record for the highest acquisition in history and proving Chewy 's development potential and market value.

Chewy has accurately positioned itself, focused on the large category of pet supplies and achieved remarkable success. It has taken a leading position in the US pet e-commerce market, and its market share has even exceeded that of e-commerce giant Amazon, accounting for nearly 50%.

Currently, Chewy has successfully established alliances with more than 3,500 well-known brands and has more than 75,000 different products, covering all aspects of pet life, from pet food, snacks, medicines, to pet toys, clothing and accessories, to cleaning supplies, pet bags, pet beds, etc.

Chewy attaches great importance to the user shopping experience and has built an efficient logistics network to ensure that customers can enjoy a two-day delivery service across the United States. Providing high-quality customer service is also one of Chewy's successful strategies. By providing full manual and 24-hour customer service support and humanized after-sales service, it has greatly improved user stickiness and loyalty.

Chewy has its own "secret to success" in its transformation from a startup to a giant in the pet industry .

A customer who purchased pet food on Chewy requested a refund for the unopened items after her pet died. Chewy not only quickly accepted the refund request, but also suggested that the customer donate the unopened food to a pet shelter and sent a bouquet of flowers to express condolences.

Such personalized and warm service can easily win the hearts of pet owners and help build a deep emotional bond with consumers, which is in line with its vision of becoming "the most trusted and convenient shopping website for pet parents around the world."

The "it" economy is booming, and domestic sales are accelerating

Nowadays, the pace of life is accelerating, and people do not have the extra energy to invest in complex social interactions or long-term relationships. Keeping pets is also seen as a pursuit of a kind of "certain" love. They can provide emotional value for pet owners and have gradually become an important carrier for pet owners to place their emotions.

As the "it" economy continues to boom, the size of the pet-related market segment is also growing.

The pet market segment has now expanded to all aspects of pet life, covering clothing, food, housing, transportation and other fields. An industrial chain has gradually formed, including a series of products and services such as pet food, pet supplies, pet medical care, pet grooming, pet training, pet insurance and pet funeral, among which pet products and pet services are the main ones.

Compared with foreign countries, the rise of the domestic pet market is relatively late. It is understood that since 2000, some small-scale pet product manufacturers have begun to appear in China. After 2015, domestic pet brands have gradually developed and the development of the pet industry has become more standardized.

As a giant in China's pet industry, China Pet Foods has been deeply involved in the pet food field for more than 20 years. It started out by manufacturing pet food for overseas customers. This year, China Pet Foods has reaped great rewards.

According to the report, the company's performance in the first three quarters hit a new high, with operating income reaching 3.189 billion yuan, a year-on-year increase of 17.56%; net profit attributable to shareholders was approximately 282 million yuan, a year-on-year increase of 59.54%.

China Pet Foods' products cover two categories: for dogs and cats. The product line is very rich, with more than 1,000 products in the whole line, including pet dry food, wet food, snacks, freeze-dried food, etc. It is one of the companies with the longest product line and the most complete products in China's pet food industry.

China Pet Foods is actively expanding its overseas markets and is committed to becoming a leader in the global pet food industry. Its products have been exported to 82 countries and regions on five continents, and its own brands have entered 68 countries and regions around the world, covering a wide range.

There are many companies like China Pet Foods in China. In the future, there will be more up-and-coming companies in the pet industry, which will bring more surprises to pet owners.

The market prospects are broad and new growth opportunities are emerging

Compared with the domestic market, the pet care penetration rate in many overseas countries is higher and the market is growing rapidly. Data shows that in the first half of 2024, sales in the overseas online pet market increased by nearly 14% year-on-year.

Among them, the North American market is the leader. The scale of the online pet market in North America ranks among the top in the world, especially on Amazon's North American site, where sales of related products reached 156.7 billion yuan, a year-on-year increase of 7% in the first half of 2024.

The second is the pet market in Europe and Southeast Asia. Although it is relatively small in scale, its growth momentum is very strong, with growth rates exceeding 50% in the first half of 2024.

As people's living standards improve and the demand for pet companionship continues to grow, pets are bound to become an indispensable member of many families. The demand for pet products in overseas markets is also growing, which will bring sellers a broader development space.

New opportunities in the pet market continue to emerge. Sellers who want to make a difference in this field can improve their competitiveness, strengthen their brands, and go abroad with their own brands and sell them globally in the future.

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