Pet toy Amazon bestseller to DTC favorite
Overview
A pet toy brand, renowned for its enrichment toys for dogs and cats, initially built a loyal following on Amazon through high review counts and engaging product videos. However, as competition intensified and margins tightened, the brand recognized the need for a direct relationship with its customers.
In early 2024, the brand partnered with a Shopify growth agency to establish a DTC channel that prioritized customer experience and recurring revenue. Within 9 months, their DTC site achieved a 4x increase in customer lifetime value (LTV), with over 22% of orders coming via subscription, and email plus SMS accounting for 35% of total sales.
Our DTC strategy and execution
- Brand repositioning and product strategy:
- Refined the brand’s focus to emphasize “Mental Stimulation for Healthier Pets”
- Introduced themed monthly bundles (e.g., “Boredom Busters,” “Chewer’s Club”)
- Updated packaging to be more giftable and visually appealing for social media
- Implemented loyalty incentives to encourage repeat purchases.
- Shopify store build and conversion optimization
- Developed a vibrant, high-converting website with playful UX elements (achieving a 3.4% conversion rate)
- Created a quiz to recommend toys based on pet size, breed, and behavior
- Enhanced product pages with enrichment benefits, video demonstrations, and safety certifications
- Integrated a subscription model for monthly toy deliveries
- Email and SMS flows
- Launched a welcome flow with a 23% conversion rate, offering personalized toy recommendations
- Implemented abandoned cart recovery strategies, adding 10% to revenue
- Distributed educational content (e.g., “5 Signs Your Pet Is Bored”) to boost open rates to 46%
- Utilized SMS for limited-time offers and early access to new products
- Acquisition campaigns
- Deployed Meta and TikTok ads featuring pets interacting with toys, resulting in high click-through rates.
- Emphasized the message: “Your Pet Deserves More Than a Ball.”
- Collaborated with pet influencers and trainers to generate user-generated content.
- Conducted giveaways to drive early traffic and capture email leads.
- Amazon to DTC migration
- Inserted promotional cards in Amazon packages: “Join the Club – First Box Free!”
- Tracked Amazon customers through post-purchase opt-ins and retargeted them via social media
- Established an online community featuring tips, user-submitted pet videos, and rewards
Results (within 9 months)
- Achieved a 78% growth in total revenue, with DTC accounting for 52% by month 9.
- Realized a 4x increase in customer LTV compared to Amazon-only buyers.
- Secured 22% of all orders through subscriptions by month 6
- Attributed 35% of total revenue to email and SMS marketing efforts.
- Received over 200 user-generated content submissions from pet owners, fueling a content creation cycle
Challenges
- Amazon-heavy revenue: 92% of sales originated from Amazon, limiting brand storytelling opportunities
- Fee pressure and copycats: Margins were eroded due to FBA costs and imitation products
- Limited upsell/cross-sell: Amazon’s interface restricted the promotion of bundles or new SKUs
- No customer data: The brand lacked the means to build a community or monitor buying behavior
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