Cross-border sellers have an opportunity! Chewy is open to Chinese sellers for the first time

Recently, Chewy, a well-known American pet e-commerce platform, announced that it would open up to Chinese sellers. This decision not only means that Chinese brands have the opportunity to directly connect with the North American market, but also puts the Chinese pet products industry on the new cusp of globalization.

1. What kind of platform is Chewy?

Chewy is the largest pet e-commerce platform in North America and is known as the "king of pet e-commerce". It has a 50% market share in the U.S. pet e-commerce market and has almost monopolized this niche. Its market position is solid, and its sales and profits are growing rapidly.

In the first three quarters of 2023, Chewy's total net sales reached US$8.614 billion, a year-on-year increase of 3.51%, and its net profit soared 4708.24% year-on-year to US$370 million. This achievement not only demonstrates Chewy's market resilience, but also proves its strong profitability.

Chewy's success lies not only in its market share and sales, but also in its unique membership system and customer stickiness. Chewy's membership user annual growth rate is as high as 40%, the renewal rate is over 85%, and the average annual consumption of members is 65% higher than that of ordinary users.

In addition, Chewy has greatly improved its customers' shopping experience through its Autoship model (automatic delivery). The average annual spending of automatic delivery customers is approximately US$820, much higher than the US$423 of ordinary customers.

This innovative service model not only enhances customer loyalty, but also further consolidates Chewy's market competitiveness.

2. How do Chinese sellers join Chewy?

Chewy recently officially opened its doors to Chinese sellers, providing Chinese pet supply brands with an opportunity to directly enter the North American market.

In order to help Chinese sellers settle in smoothly, Chewy cooperated with the cross-border payment platform Payoneer and launched the "Olive Branch Plan", providing one-stop settlement support, including qualification pre-review, official docking, account activation, payment services, etc., greatly reducing the entry threshold.

• Entry conditions:

  1. Company qualifications: A business license from China or the United States is required.

  2. Inventory and logistics: We have inventory in the United States and can apply for a shipping label through Chewy’s FedEx account within 24 hours (working days) after the order is placed, and notify the courier to pick up the item.

  3. Supply chain capabilities: China has strong supply chain capabilities, including self-owned factories, integrated industrial and trade factories, or cooperative factories.

  4. Product requirements: Pet products (non-food and cat litter) must provide an online sales platform link or product catalog of the corresponding category.

  5. Product liability insurance: Purchase product liability insurance (COI).

  6. Receiving account: Provide a letter confirming Payoneer’s USD bank account number.

• Cooperation Mode:

1. Dropship model: suitable for sellers with rich experience in cross-border e-commerce and a strong supply chain. The seller is responsible for supplying goods, and Chewy is responsible for sales and delivery.

2. Chewy procurement model: Suitable for sellers who want to build a brand in the US market. Chewy purchases products directly from Chinese suppliers and sells them on its platform.

3. Chewy import model: tailored for factory sellers, Chewy imports products from Chinese suppliers, and sellers are responsible for cross-border logistics.

• Collection period: Chewy's collection period is generally 60-90 days. Sellers can discuss with the platform in the cooperation agreement to determine the specific collection time based on their actual situation.

The opening of Chewy provides Chinese sellers with an excellent opportunity to enter the North American market. For sellers with high-quality pet products, stable supply chains and strong capital turnover, now is the best time to enter the market.

Choosing the right cooperation model, leveraging Chewy's subscription model and membership system, and grasping the shopping habits of North American consumers will help brands gain a steady foothold on the Chewy platform and achieve long-term development.