Pet Brands on Amazon: How to Protect Margin in 2025 (Insights from Outward Hound)
Learn how leading pet brands protect margin on Amazon using data, strategy, and disciplined brand thinking. Featuring Zeal Agency and Outward Hound.
Amazon is still the #1 growth channel for pet brands—but it’s also one of the most margin-hostile. In the latest episode of Executive Roast, I (Emma Bagley, Founder & CEO of Zeal Agency) sat down with Marla Fox, Director of eCommerce at Outward Hound, to unpack how pet brands are navigating profitability, lifecycle planning, and long-term strategy in a crowded, fast-moving category.
Outward Hound operates globally as a vendor brand, managing more than 600 ASINs across multiple pet sub-brands. Marla’s experience is rich with insight—especially for those in the dog and cat toy space, where pricing pressure and copycat competition are rising fast.
Don’t Rush to Win — Build to Last
Marla’s key message? Brands that chase instant wins often burn out fast.
In pet, it’s relatively easy to manufacture a toy or treat, price low, and flood ad placements. But many of those brands lose money from the start, fail to maintain margin, and disappear within 6–12 months.
Outward Hound takes a different approach:
Play the long game: design SKUs for longevity, not virality
Optimise for sustained reorders, not flash-in-the-pan trends
Balance Amazon’s expectations with profitability guardrails
"The game is knowing how to scale while protecting both your business and Amazon’s margins. If you run too hot too fast, you’ll burn both."
The Reality of Product Life Cycles on Amazon
Pet products don’t last forever—and Marla is refreshingly honest about this. What was a hero SKU three years ago may now be crowded out by China-direct sellers or new trends. Her team watches signals closely and isn’t afraid to:
Retire products that no longer perform
Reinvest in SKUs that build steadily over 6–12 months
Tailor portfolio by region (e.g. Germany vs. US vs. UK)
"Some products soar in one market but stall in another. Our EU business moves differently from our US market—and our strategy reflects that."
1P vs 3P: Understand the Difference Before You Decide
A recurring theme in the episode: most Amazon advice ignores 1P realities.
While Marla acknowledges that hybrid models are appealing, she’s clear that:
1P brings forecasting challenges, but offers scale
3P can be quicker to launch—but harder to keep profitable
Not all categories suit both models
If you’re weighing a hybrid strategy, Marla advises:
Get clear on your true unit economics
Understand the fulfilment and fee structure of each model
Test 3P only where retail price points can support it
"We’ve learned the hard way—some SKUs don’t make sense on Seller Central. You need to model that early."
How to Build Brand in a Price-Driven Category
Brand used to matter more in pet, says Marla. Now?
In toys and beds, consumers often just buy what’s cheapest
In food and treats, brand still drives loyalty and LTV
Platforms matter: brand matters more on Chewy than Amazon
Outward Hound’s response:
Invest in characters like "Kyle the Cat" to create personality
Align packaging, tone and digital with brand story
Focus on creative that tells a story in 15–30 seconds (especially on TikTok)
"You can’t just say you have a brand. You need to show it across touchpoints—and even then, it only matters in the right category."
The Quick Win for Pet Brands on Amazon
Marla’s advice for brands looking to improve Amazon performance today?
Start with research: use tools like Helium10 to reanalyse keywords and category dynamics
Identify small arenas within large categories where you can actually win
Be patient: many of their best products took 3–6 months to gain traction
"Test. Learn. Repeat. But do the research first. It will save you months of wasted spend."
The Future: A Shift Back to Quality & Brand Trust
Marla predicts a pendulum swing. Consumers are flooded with low-quality products and may soon crave more trust, more safety, and more brand connection—especially in pet.
"People’s homes are filled with cheap stuff. They’ll want to return to quality—and when they do, strong brands will rise."
Final Word from Zeal Agency
At Zeal, we work with pet brands who want to grow profitably—not just chase rank. Marla’s insights align deeply with our philosophy:
Strategy over shortcuts
Profit over pace
Long-term positioning over short-term popularity
If you want to play the Amazon game smartly—protecting margin, improving product lifecycle planning, and learning from brands like Outward Hound—this episode is essential viewing.
Watch the full interview on YouTube: [https://youtu.be/qSBuIWDK1Bk]
Talk to Zeal about Amazon strategy for pet brands: [bit.ly/4mzioO7]
