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Chewy Takes a Bite Out of Amazon

Amazon changed the rules of the game in e-commerce, but some rivals have figured out how to adapt.

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Chewy Takes a Bite Out of Amazon
Who is top dog in pet food and supplies?
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No company is unbeatable, even Amazon. In the online pet food and supplies category, for example, Amazon faces a fierce challenge from Chewy. Since its founding in 2011, Chewy has focused on functional Elements of Value® such as variety, saves time, reduces effort and reduces cost, aiming to wow customers with exceptional service and a massive selection of products at affordable prices. Today, Chewy delivers on the same eight elements that Amazon does in pet supplies, but outperforms Amazon on six of those eight. Its emphasis on the elements that matter to pet owners has fueled Chewy’s outsize growth. Revenue climbed at an 89% compound annual rate from 2013 through 2017, and the company’s share of the online pet supplies market rose from 8% to 26%.

Eric Almquist is a partner with Bain & Company’s Customer Strategy & Marketing practice.

Elements of Value® is a registered trademark of Bain & Company, Inc. 

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Elements of Value® is a registered trademark of Bain & Company, Inc.