Chewy.com Case Study: How Logistics Built This Fast-Growing Company

Each year, billions of dollars of freight is shipped around the country. The logistics sector has become increasingly critical to everyday life as companies build a loyal base of customers by offering fast and free delivery services. When you think of “free shipping,” Amazon.com probably comes to mind first. However, Chewy.com is another heavyweight in the industry that was built on sound logistics.

Chewy.com’s Early History and Explosive Growth

Compared to many large corporations, Chewy.com is practically an infant. It was founded in 2011 with the name “Mr. Chewy.” Its founders, Ryan Cohen and Michael Day, hit on the idea of creating a company that caters to pet parents while Cohen was buying food for his teacup poodle. Cohen and Day realized that people who love animals are willing to shell out big bucks for high-quality food and other pet products. They were right. During its first year, the company made over $25 million. The company was sold to PetSmart in 2017, and today the company is valued at more than $3 billion.

Chewy.com’s Promises to Customers 

One of the reasons why Chewy.com became so wildly popular so quickly is its promises to its customers. Americans had already become hooked on the idea of fast, free shipping, thanks to Amazon.com. Chewy.com mimicked this idea, promising free two-day shipping on orders over $49. And unlike Amazon.com, customers don’t need to shell out cash for a membership in order to get free shipping. Chewy.com also offers a 100% money back guarantee, a 100% satisfaction guarantee, and 24/7 customer support.

Chewy.com’s Strategically Located Shipping Centers 

It’s no mean feat to guarantee one-to two-day shipping to millions of customers nationwide. Chewy.com has been able to keep its promises and keep its customers happy by building a network of shipping centers. These are strategically located around the country, enabling customers to receive their shipments in the shortest amount of time possible.

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