Low Price, High Pressure, Is Amazon and Noon ruining your market in the UAE

Price dropping by third party sellers or market places directly is really starting to affect the UAE pet specialty store

7/23/20263 min read

Amazon, Pricing Wars & the Race to the Bottom: Is Your Pet Store Fighting a Battle It Can't Win?

Recently, I introduced a well-known premium kibble brand into one of my retail partner stores here in the UAE. It wasn't a risky decision—the brand consistently ranks in Amazon's Top 100 across all three bag sizes, so demand was clearly there.

However, when the shipment arrived and I reviewed the invoices, something immediately caught my attention.

The wholesale cost price was almost identical to the selling price being advertised by another retailer on Amazon.

As someone who has spent more than two decades working in the UAE pet industry, that simply didn't make sense.

It led me to ask a simple question:

How are some Amazon sellers actually making any money?

Digging Into the Numbers

After analysing many of the products in Amazon's Top 100 pet category, I noticed two distinct pricing strategies.

1. The New Marketplace Seller

The first group consisted of relatively new, unknown sellers with recently created accounts. Almost all of them were using self-fulfilled shipping rather than Amazon FBA.

Many of these sellers were pricing products at, or even below, what most retailers would consider their wholesale cost. In some cases, it appeared they were making little or no profit at all.

Why?

There could be several reasons:

  • Building sales history and reviews.

  • Increasing account rankings.

  • Generating cash flow.

  • Acquiring customers.

One interesting aspect of self-fulfilled orders is that sellers receive the customer's delivery details in order to complete the shipment. While Amazon has strict policies prohibiting the use of this information for marketing outside the platform, it does raise an important question about enforcement and the potential value of customer data for businesses looking to build long-term relationships.

Whether this strategy is sustainable is another matter entirely.

2. Amazon Itself

The second type of low-priced seller wasn't a third party at all—it was Amazon.

Amazon's pricing was generally more realistic than the aggressive third-party sellers, but it was still significantly below the prices that independent specialist retailers could sustainably offer.

Because these products were either sold directly by Amazon or fulfilled through FBA, they naturally received prime placement in search results and customer preference.

For independent pet retailers, that's an incredibly difficult position to compete against.

Are Distributors Undermining Their Own Retail Network?

This is where the conversation becomes more important.

Over the past 20 years in the UAE, I've watched the pet industry evolve enormously. Historically, distributors worked closely with specialist retailers to build brands, maintain pricing integrity, and protect the long-term value of their products.

Increasingly, however, some distributors are choosing to supply large marketplaces directly.

While this may increase short-term sales volume, it can also have unintended consequences:

  • Reduced margins for independent retailers.

  • Constant price competition.

  • Loss of brand exclusivity.

  • Erosion of perceived brand value.

  • Fewer specialist pet stores able to survive and invest in customer service.

Specialist pet stores do far more than simply sell products. They provide expert advice, educate pet owners, support local communities, and often help promote premium brands in ways that marketplaces simply cannot.

When those retailers disappear, brands lose valuable advocates.

Competing on Price Isn't the Only Strategy

Trying to beat Amazon on price alone is rarely a winning strategy.

Successful retailers focus on creating value through customer experience, product knowledge, exclusive ranges, loyalty programmes, professional advice, subscription models, community engagement, and services that marketplaces cannot replicate.

Price will always matter—but it shouldn't be your only competitive advantage.

Need Help Building a Better Retail Strategy?

If you're a specialist pet retailer feeling the pressure of marketplace pricing, you're not alone.

There are practical strategies that can help protect your margins, strengthen your business, and position your store for long-term growth without joining the race to the bottom.

Book a discovery mentoring session with Trina Mole to explore practical pricing, merchandising, marketplace, and retail growth strategies tailored to the UAE pet industry.

Sometimes the biggest opportunity isn't lowering your prices—it's changing your strategy.