Forty-four percent of Chewy’s customers are enrolled in its Autoship program, which lets customers specify when they want replenishment orders. Those customers spend considerably more than others who shop on Chewy.com.
Autoship customers buy $820 per year on average from Chewy versus $423 for other Chewy customers. They buy 15.5 times annually versus 10.4 times and spend $53 per order compared to $41 for those who don’t choose automatic reordering.
Source: Digital Commerce 360, May 27, 2022. Link. Autoship has played a major role in Chewy’s recent growth. It accounted for 70.7 percent of sales in the fourth quarter of the retailer’s 2021 fiscal year, which ended Jan. 30, 2022. Chewy says its Autoship revenue has grown 77 percent in the two years of the pandemic.
INSIGHTS: It is time for veterinary hospitals and retailers to stop, look, listen and think about why there is any remaining reluctance to using home delivery platforms. About half of the animal owners you service today use an automatic ship service of one or more online companies that sell animal supplies.