Is the pet niche oversaturated?
We often get asked, “Is the pet niche too oversaturated with dropshippers?” by retailers, marketers, and entrepreneurs alike. This question typically arises during two different situations. First, a new dropshipper is learning more about the pet niche by researching products, suppliers, competitors, etc. when they realize there are millions of search results for “pet supplier” or “dropship pet products”. This is often followed by a fear of oversaturation due to the realization that there is a lot of competition in the niche and what seems like a lack of originality. The next scenario that usually ends with, “Is the pet niche too oversaturated with dropshippers?” occurs when a new dropshipper has set up their store and doesn’t see many sales after weeks and months of marketing and advertising. In this post, we hope to dispel the notion that the pet niche is oversaturated or offers little room for success as a dropshipper.
In 2019, the pet industry is expected to generate over $75B in sales. Just four years ago, it was valued at about $60B in annual sales. Understand that the pet niche is a growing industry. Annual pet expenditures have increased consistently over the past 20 years, likely due to the fact that the number of pets owned in the United States and the number of households in the United States that own a pet has increased over the last several years.
The largest retailers in the pet niche (PetSmart, Amazon, PetCo) combined don’t even account for half of the entire industry’s revenue generated. As a niche dropshipper, that means the size of the pet niche is a good thing. There is more than enough demand for new brands to emerge and claim their stake in the market.
BuiltWith reports over 3,000 ecommerce sites worldwide selling pet products. That can sound like an intimidating amount of competition, until you realize that only about 20% of these sites are making a significant profit. Why? Likely because the evolution on dropshipping as a business model and seamless technologies like Shopify have made it possible for virtually anyone to create a store and sell online.
As a result, an influx of new brands appeared in many niches, including the pet niche. However, many of these new pet dropshippers lack the niche marketing skills to establish themselves as a brand, which leads to many selling the same old products with the same copy and paste descriptions from AliExpress.
This is great news for you! By taking the time to research and understand the pet niche and how to market to them, you’ve already gained an advantage over other retailers who have not invested the time and effort into doing so. Take into consideration the level of your competition and the vast amount of marketing opportunities that remain untapped in this niche when you ask yourself whether or not it is truly oversaturated.
The points presented in this post are not exclusive to the pet niche or even to dropshipping. In many types of business ventures you’ll find people claiming that you’re entering an oversaturated market with little chance of success. However, your ability to understand your audience, find how you can add value, and execute marketing strategies is what will allow you the chance to find success in your venture. Dropshipping is easy and the pet niche is a very familiar industry, but don’t mistake this as a guarantee that starting a website and listing products is all it takes to be a successful dropshipper. Very few are willing to invest the time and energy it takes to truly build a successful dropshipping business, but the ones who do find the most success.