Новости

27 February 2025
Catch up and overtake online

In recent years, the e-commerce market has been growing at record-breaking rates, largely thanks to marketplaces. At the International Business Exhibition of Goods and Services for Pets “PETINDUSTRY-2025,” Alexander Kolchin, Content Director of the Information and Innovation Center “Zooinform” and a sales business coach, shared effective tools for increasing the market share of pet stores.

In his presentation titled “How Pet Stores Can Win the Battle Against Marketplaces,” Alexander Kolchin reminded the audience that at the beginning of 2020, products on marketplaces attracted little interest. However, by May, due to the lockdown, sales had grown significantly, and pet products were no exception.

“In just five years, marketplaces have made a revolution. They are a major sales channel and a serious competitor for many industries,” said Alexander Kolchin.

The expert cited statistics from the research company Nielsen, which show that online sales remain the fastest-growing channel, though its growth has recently slowed. In November 2023, the share of online sales in monetary terms was 41%, but by October 2024, it had dropped to 22%. In 2025, Alexander Kolchin predicts stabilization in this segment. The calculations include not only marketplaces but also the online platforms of pet stores.

Despite their fast delivery and wide assortment, marketplaces have many vulnerabilities, Kolchin continued. Counterfeit and low-quality products can be found on marketplaces.

“A marketplace with a trillion-dollar turnover, registered as an IT company, does not always take responsibility for counterfeit or low-quality goods. The same applies to product certification. A marketplace requires a scanned copy of a document or its number from the supplier but cannot verify its authenticity for all products listed,” said Kolchin.

Additionally, marketplaces are not participants in the “Honest Sign” system. “They check for the presence of the sign when accepting goods but do not verify its validity, category compliance, or the recipient of the sign,” he added.

To strengthen their position in the market, Kolchin recommended that pet stores focus on their strengths. Looking at the structure of four main product categories (cat food, dog food, litter, and treats), their market share varies depending on the sales channel: pet stores, modern retail (supermarkets), and online. For example, pet stores sell the most treats—9.1% (compared to 3.5% in supermarkets and 1.8% in e-commerce). This is because treats are often an emotional purchase, typically made offline, and are often placed near checkout areas. Kolchin recommended leveraging this position.

Another product category to focus on is litter, with sales volumes nearly equal in online and pet stores (9.5% and 10%, respectively). “On average, a store offers 27 SKUs, meaning customers not only want to buy but also see the assortment structure. In some stores, customers can even examine the shape and size of the pellets,” he said.

The share of cat food sales is also nearly equal between online and pet stores (54.5% and 56.4%, respectively), so expanding the assortment in this category is a good strategy, he added.

The online segment has significantly outpaced other sales channels in the “dog food” category. The reason is simple: dog food packages are often heavy, and delivery plays a crucial role in this case, the expert explained. He advised pet stores to organize online sales and fast delivery to offer the same convenience as marketplaces. Another option is to sell dog food by weight. Overall, the most popular pet products in online sales are dry food and litter, again due to the convenience of delivery.

The advantages of pet stores over marketplaces include high-quality products, proper storage conditions, and live communication with consultants. “Improving communication services with pet owners will be a trump card for offline stores,” added the expert. To boost sales, he also recommended hosting events with invited experts and organizing prize draws.

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