Amazon pet product sales have reached US$2 billion, up 40 percent from 2015. As of 2016, Internet sales account for approximately 9 percent of the US$48 billion US market for pet products — around US$4.5 billion, according to data published in the new report U.S. Pet Market Focus: The Amazon Pet Food and Supplies Shopper, by market research firm Packaged Facts. Packaged Facts further reveals that pet products are among the fastest-growing online retail categories, with 45 percent growth over two years in the percentage of adults making pet product purchases online in the past three months. E-commerce retail powerhouse Amazon is leading the way; Amazon sales of pet products reached US$2 billion in 2016, up 40 percent from 2015. Amazon competes with pet specialty stores  Over the course of three years, Amazon's purchase usage penetration among pet owners has grown 19 percent to 32 percent, surpassing Petco's user breadth (25 percent) and encroaching on PetSmart's (32 percent). Further, the share of pet owners purchasing from Petco and PetSmart who also purchase from Amazon has likewise grown. At least 36 percent of Petco and PetSmart users now shop at Amazon, a percentage share almost inevitably on the uptick, forecasts Packaged Facts. Packaged Facts' analysts note that Amazon is capitalizing on a critical growth trend in the US pet market and has the potential to become an even more formidable presence in the e-commerce pet market segment than it already is. "The fact is online sales of pet products are at a tipping point," said David Sprinkle, Packaged Facts research director, in a press release. "For all players — brick-and-mortar, multi-channel, and online-only alike — the good news is that the market itself continues to grow. However, the sheer size of the Amazon user base, coupled with its aggressive growth, huge Amazon Prime membership base, burgeoning ability to meet any and every product need within that category, and an Amazon Prime value proposition that is very hard to beat make Amazon both very threatening and very intriguing." About the report Packaged Facts has published its first dedicated report on Amazon, including two spin-off options., including U.S. Pet Market Focus: The Amazon Pet Food and Supplies Shopper. The report provides insight on the role Amazon plays in shaping growth in the pet food and non-food supplies market. This report focuses on pet products purchasing trends over time to assess shifts (online, in-store and multi-channel) by major retailer and channel. As part of this focus, this report analyses retailer loyalty over time and, for active Internet users, share of spend by purchase channel. Throughout the report, analysis hones in on the role Amazon plays in shaping these trends, including cross-usage among major pet product retailers over time. The report also analyses Amazon Subscribe & Save, Amazon Fresh, and other features and services as they relate to the company's evolving approach to the pet products category.  source:https://www.petfoodindustry.com/articles/6651-research-finds-online-pet-products-sales-on-the-rise ...read more

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