Above all the pet retailers, Chewy is pretty generous towards its price tags. These underpriced products are explained by the six legitimate facts about the online company.
What is Chewy’s secret to rapid growth?
Chewy, an online retailer for pet products, was started in 2017 with the vision of becoming one of the greatest businesses. From the start, it sold pet food, beds, clothes, and medicine. But, in 2019, Petsmart bought the company for $3.35 billion, and the payment made was all in cash. This gave the company a boost to expand its wings for a bigger budget and, hence, made it flourish throughout the years.
Let’s get down to the facts of why Chewy is so cheap.
Fact # 1: Chew doesn’t have any offline stores.
Having a physical store means that it demands cash flow for rent, interior, maintenance, electricity, and so on. Chewy smartly saves all this money by selling its products online.
No offline store, so no hustle for maintenance.
Also, Chewy doesn’t need to stress over expanding its influence over the other locations because it already has an online website that is available to every corner of the United States.
All it needs to pay for is a warehouse where it fills its catalog.
Fact # 2 : It uses Third party shipping services
Chewy is smarter in this way. It uses Fedex, a reputed logistics company with excellent shipping experience. This whole setup takes up only a fraction of the income rather than setting up a personal shipping unit.
Fact #3: It knows that it only sells pet products.
Usually, everyone likes to buy pet-related things from a local market. This makes it more trustworthy for the pet parents. Thus, beating up this psychology of the customer is challenging and makes it hard for online e-commerce companies like Chewy to compete.
Therefore, to beat this psychology, all it can offer is major discounts on the products. Obviously, everyone likes discounts, and this makes Chewy a winner in giving out low-priced products.
Chewy makes a concession in order to gain customer trust.
Fact # 4 : Free shipping
Who doesn’t love free shipping? You’ve been in a situation when you had to cancel your order of $100 just for the shipping price of $2. This doesn’t add up, but it occurs with most of the customers. Even though purchasing an expensive item doesn’t hurt much, the shipping price on top of that hurts like salt on an injury.
Chewy wins its consumers’ hearts by giving away free shipping. But, this also has a trick to it. You’ll only enjoy this generous offer if you purchase for more than $49.
If you’re planning to purchase in bulk, then you’re at a profit. Otherwise, you end up hurting your wallet. But, a more strategic way of purchasing is to pair up with one or two of your pet parents’ friends and buy stuff from the website. This way, you’ll reach the free shipping limit without washing away excess money.
Fact # 5: Fewer employees
For now, Chewy is content to keep its business online. Why will it not be? This strategy saves the company from draining excess money. So, it is cheap because it doesn’t need to impose any extra charges on you for paying its staff, cashiers, safety guards, cleaners, and so on.
Thus, it only offers prices that are raw and doesn’t add up any hidden expenses for you.
Fact # 6: It sells products straight from manufacturers
Selling products straight from the production places doesn’t add overbearing expenses. It doesn’t give out money to all the chains of retailers.
As it picks the items in bulk from the manufacturing units, it doesn’t need to triple the price tags of the products. Because even after selling a bed for a pet at a cheaper price, the company still saves some percentage for itself.
Chewy is one of the fastest growing e-commerce sites for pet products. It offers huge discounts and cuts its prices to really low levels because of its smart strategy. As it doesn’t invest in physical stores and picks items from manufacturing units, it saves a great deal of money even after offering a product at half of its price. If you want to buy a pet item at a cheaper price, you can visit the official website of Chewy and add up the required products in your cart.
Frequently asked questions
Does Chewy sell fresh dog food?
Yes, Chewy sells fresh and prepared eatables for dogs. Its food items meet AAFCO standards for the preference of nutritional adequacy.
