Amazon Feeds Pets.com's Lead

Baldwin Louie — Thu, 17 Jun 1999 18:00:00 -0400

A new round of financing is expected to help Pets.com broadcast its new ad slogan, "Where your pet would choose to shop." Considering the sum of the investment ($50 million) and the star power of its sources (Amazon.com (AMZN), in addition to VC firms Hummer Winblad and Bowman Capital), the much-hyped cyberseller of pet supplies may become the company in which your pet would choose to invest. Amazon's exact contribution was not disclosed, but its stake in Pets.com rose above 50 percent, according to Robert Conlin of E-commerce Times.

Pets.com, which added e-commerce functions only last March, already has the 800-pound gorillas of pet supplies scrambling for a Net strategy, said Conlin. Large retail chains Petsmart and Petco "have been woefully slow to recognize e-commerce potential and, as a result, online startups like Pets.com and Herndon, Va.-based AcmePet.com have gotten a leg up on them," Conlin writes. That fact is no doubt true, but the reader is left wondering whether that leg belongs to a towering Great Dane or a wee dachshund. In other words, has Pets.com established itself as the Amazon of the pet world? The story begs for some perspective - revenues, site traffic, brand recognition or even just an expert opinion.

Caught off-guard as they were, the established retail players have been quickly devising their e-plans since Amazon's original investment in Pets.com a couple of months ago, according to Newsweek's Brad Stone. When Pets.com got that first injection of cash, "the move was akin to a pit bull's stepping into a pen of Chihuahuas - everyone jumped, including the brick-and-mortar pet leaders," wrote Stone. Petsmart will launch its site next month, and Petco is huddling with Morgan Stanley to determine its next move. Amazon's alliance with Pets.com also affected smaller e-ventures AcmePet and PogoPet by scaring off investors, while Petstore.com barely escaped with its funding intact.

The fear stems from more than just Pets.com's ample cash reserves, noted Stone. Amazon has 10 million customers, who will soon see a "pets" link on Amazon's home page. Employees are getting behind-the-scenes help from their Amazon cohorts as are those at another sister company, Drugstore.com. We can only hope Amazon's rapid (rabid?) expansion doesn't lead to PetsDrugstore.com.

Amazon and Partners Sink $50 Million Into Pet Project
E Commerce Times

Amazon's Pet Project
Newsweek

The Industry Standard - Amazon Feeds Pets.com's Lead - Comments

Amazon Feeds Pets.com's Lead