Sponsored by Nestlé Purina
What’s feeding growth in e-commerce today? Just ask Amazon. The e-retail giant reported its number two best-selling brand is its recently acquired Whole Foods’ 365 Everyday Value. Amazon now leads US online grocery in market share with 18 percent - double that of closest rival Walmart.1
With around a quarter of American households currently buying some groceries online, web-based grocery sales are expected to increase rapidly – growing by 20 percent year over year, and with 40 percent of center store volume expected to migrate online by 2020.2
With these projections, e-commerce may feel a little like the ‘wild west’ to grocers. But capturing a piece of the online pie doesn’t have to entail an immediate overhaul to how you do business. It may be as simple as identifying the biggest opportunities, and building your strategy from there.
Take the pet department for example. The pet care category (food, litter and supplies) is currently ranked number one in total sales out of 265 categories sold in US supermarkets.3 In fact, seventy-three percent of US households buy pet.4 But did you know that pet owners who shop online spend twice as much on pet food and treats than in-store only pet shoppers?5
Growing at over $2.5 billion each year since 19946, pet has long been the big dog of center store. And with almost a quarter (23 percent) of pet sales projected to move online by the year 20207, below are some simple ways to meet your pet shoppers’ needs, and promote customer loyalty.
Navigation is Key
Showcase in-aisle signage that communicates your e-commerce solutions, i.e. home delivery or curbside pickup. Invest in SEO to position your site as a top result when consumers search for pet products online. Prioritize pet on your store homepage so that it appears above the fold, or create a special pet landing page.
Prioritize the Best-Selling Brands
Ensure that your online assortment mirrors your in-aisle selection. Position your best-selling brands prominently on your pet landing page, and feature engaging brand content, such as product photos, video and ratings & reviews.
Make Checkout Easy
Offering an autoship service will not only allow your shoppers to save time and money, but will also increase repeat buyers. Simplify your online checkout process and be sure to communicate free shipping options. Partnerships with services like Instacart provide a turnkey way to provide these benefits to your customer.
Offer a Variety of Fulfillment Options
Home delivery through services like Instacart, Shipt and Peapod are growing in popularity, as is click & collect. The key is to clearly communicate these options both in-store and online. It’s also important to link your in-store and online inventory to ensure a seamless process.
No doubt the grocery business is changing rapidly due to the emergence of e-commerce. As the category leader, Nestle Purina offers strategies to capture the valuable pet shoppers’ sale, both in-store and online. Prioritizing pet is important to building your overall e-commerce business, and potentially doubling your pet sales, over the next two critical years.
1 One Click Retail
2 The Digitally Engaged Food Shopper Report, FMI and Nielsen
3 IRI Public Information
4 American Pet Products Association Industry Trends CMI Analysis
5 Nielsen Custom Panel 52 wke 6/24/17, Pet Shopping Tracker – Online vs Offline Report, 2017 and Nielsen Category Fundamentals, 2017
6 American Pet Products Association Industry Trends CMI Analysis
7 Nielsen (AOC)+ Gfk (PS) + 1010 (Ecommerce) 52 wke 8/12/17 and NPPC Proprietary Internal Forecast