The Cost of Convenience: Understanding the Financial Landscape of Selling on Amazon and Chewy

In this episode of Pet Business Disruptors, Clayton engages in a deep conversation with Mike, the Director of Business Development and Operations at Brands Best Friend, an e-commerce agency specializing in the pet industry. They explore the complexities of navigating the ever-evolving e-commerce landscape, particularly on platforms like Amazon, Chewy, and Walmart. Mike shares insights on the challenges pet brands face in establishing a direct-to-consumer presence, the importance of developing a comprehensive e-commerce strategy, and the impact of rising customer acquisition costs. The discussion also highlights the significance of understanding consumer behaviour, the role of trust in online purchasing, and the necessity of adapting to changes brought about by AI and shifting market dynamics. With a focus on integrity and partnership, Mike emphasizes how Brands Best Friend helps brands thrive in a competitive environment while maintaining a commitment to the well-being of pets. KEY TAKEAWAYS E-commerce Strategy is Essential: Brands need a comprehensive e-commerce strategy that encompasses various platforms like Amazon, Chewy, and Walmart, rather than focusing solely on one.  Trust and Convenience Drive Sales: Consumers often prefer established platforms like Amazon due to their trustworthiness and convenience, making it challenging for direct-to-consumer (DTC) brands to gain traction.  Cost of Customer Acquisition is Rising: The cost of acquiring customers through digital marketing is increasing, with some brands spending significant amounts per customer. Adaptability to Market Changes is Key: The e-commerce landscape is constantly evolving, influenced by factors like AI and changing consumer behaviours.  BEST MOMENTS "There's a big difference between being on Amazon and having an Amazon strategy." - Mike  "You have to understand the pet industry and its history before applying any type of e-commerce knowledge." - Mike  "If you're not where your customers are, you're going to get left behind." - Clayton "It’s rare for us to enter into retainer model contracts with our brands." - Mike  HOST BIO Clayton Payne is an industry veteran of three decades of working in the pet industry. Brought up working in his parents' pet store, Clayton has seen the industry evolve over five different decades and has been on the cutting edge of the industry since the nineties. Building pet businesses from scratch, establishing multi-national distribution chains and having worked in every aspect of the industry, Clayton has a rare insight into the Pet Industry that is rivalled by few.  Clayton has been the spearhead of many of the industry's changes and has introduced numerous new concepts to market with a trail of success behind him. He has worked in numerous countries within the pet industry, speaks four different languages and has established both import and export relationships on all continents (excluding Antarctica). As well as being COO of one of the UKs fastest growing insect technology companies, Clayton is a Pet industry consultant who has consulted for many household brands and delivers sales training to pet trade professionals. https://www.linkedin.com/in/clayton-payne-a6772244/ https://www.tiktok.com/@petbusinessdisruptors https://www.youtube.com/@PetBusinessDisruptors