Industry Analysis & Industry Trends
In the five years to 2014, IBISWorld estimates that revenue for the Online Pet Food and Pet Supply Sales industry has increased. Rising pet ownership in the United States and growth across the e-commerce sector have caused the industry to experience overall growth, despite the recession. Furthermore, increasing demand for premium pet food and online animal pharmaceutical sales also contributed to industry growth during the past five years. IBISWorld forecasts that industry revenue will increase in the five years to 2019. During that time, stores will benefit from an increasing number of pets in the United States and rising per capita disposable income.... purchase to read more
Industry Report - Industry Investment Chapter
Capital intensity for online pet food and pet supply retailers is medium. Capital investments come in the form of warehouses, computer equipment and point of sale (POS) systems. Upgrades and replacements do not add much in the way of capital expenses; for every dollar spent on labor, the average operator puts only $0.24 toward capital equipment.
The industry is relatively labor intensive. Instead of staffing physical locations across the country, employees are hired to enhance the customers' online shopping experience and increase the retailer's web exposure. The industry's staff is typically responsible for web development, search engine optimization (SEO) and customer service. As such, wages account for a larger portion of revenue than capital expenses... purchase to read more