Amazon Pet Day: A strategic opportunity for profitable vendor growth

Pet Day returns to Amazon this week and presents an exciting opportunity for pet product sellers on the e-commerce giant. Category events like this don’t just present an opportunity to support vendor growth; they also offer a chance for brands to bolster their bottom line amid uncertainty.

Escaping the noise of Prime Day

According to Numerator, a data and technology company based in the United States, 40% of American households were expected to shop on Amazon Prime Day in 2024.

Unlike the crowded Prime Day calendar, Pet Day offers a more focused stage with fewer competing brands and lighter funding requirements.

This makes it an ideal moment to boost Best Seller Rank (BSR), build brand awareness and increase review counts, all without the competition you normally experience during tentpole deal events like Prime Day.

What’s key to remember is that the goal isn’t just to drive more sales. It’s to generate visibility, discoverability, and long-term consumer engagement, which helps to boost demand signals that will lead to more purchase order (PO) placements over time.

Profit growth

While many vendors shy away from funding category events like Pet Day, these promotional days pose an interesting opportunity to achieve mutual profit growth. The key here is to largely disregard the initial stock-keeping unit (SKU) recommendations from your Vendor Manager or Amazon Vendor Services (AVS).

Instead, start by mapping profitability based on margin metrics from both sides, then prioritize SKUs that contribute positively to each party’s margin. This helps you to shortlist a mutually beneficial deal and ensures that promotional investments are commercially viable, potentially even helping you reach Amazon’s Net Pure Profit Margin (PPM).

This represents Amazon’s retail profit margin and serves as a key performance indicator (KPI) for vendors selling on the e-commerce platform.

Also, don’t forget that you’re in control of your budgets: you can cap the number of units you fund, thereby keeping the risk of margin erosion in check.

Rethinking discounts?

When selling replenishable products, be cautious with impulse-driven deal discounts. Often, customers just bring forward a purchase they would make anyway. A smarter approach is to utilize Subscribe & Save vouchers or reorder coupons. These lower your media Customer Acquisition Cost (CAC) over time and increase customer lifetime value by encouraging repeat purchases.

Amazon Pet Day isn’t just about offering discounts. It’s a chance to drive sustainable, profitable growth. With the right preparation, product selection, and promotional tactics, vendors can use this event to enhance visibility, foster customer loyalty and increase their bottom line.