Chewy COO says delivery experience gives small retailers edge

Scott Anderson, chief operating executive of Chewy, says large e-commerce platforms have reshaped consumer expectations for delivery speed and flexibility, pushing smaller retailers to rethink their logistics strategies.

Winning Through Delivery Experience

Anderson told Supply Chain Dive that shoppers now expect features like adjustable delivery windows and boxless returns, raising the bar for all sellers. Competing solely on price or selection against Amazon and Walmart is difficult, he said, so focusing on personalized delivery experiences offers a viable alternative.

Both companies “have done a great job conditioning the world to the convenience of e-commerce,” Anderson noted, but that convenience has led consumers to begin requesting more advanced shipping options. Anderson previously spent nearly 10 years at Amazon, where he rose to vice president overseeing transportation and customer fulfillment in North America, according to his LinkedIn profile.

“It’s very hard to compete against Amazon because they have selection and convenience nailed,” Anderson said. “It’s very hard to compete against price with Walmart, because they do a great job driving price. Where you can win in this space is experience, because you can engage your customer better on personalization.”

Features such as picture proof of delivery, direct driver communication, and attention to packaging design help specialty retailers stand out, Anderson noted. He emphasized that curated delivery experiences differentiate smaller brands from large conglomerates.

“That curated experience is really what drives you away from those large conglomerate e-commerce [companies] and into these specialty retailers, because they can give a differentiated experience,” he said.

Balancing Metrics With Customer Stories

At Amazon, Anderson said the company tracked both delivery performance data and individual customer complaints. When anecdotal feedback diverged significantly from aggregate trends, it signaled deeper issues worth investigating.

“Anytime you had an anecdote that told you something materially different from the aggregate, you knew that there was smoke there,” Anderson said. Addressing customer concerns quickly prevents missed opportunities to serve specific shopper segments.

“Customers are not satisfied with you continuing to miss on what they’ve told you already,” Anderson added. “They’re not going to give you a second chance to screw it up.”

Building Strong Carrier Relationships

Anderson stressed that shippers should treat carriers as partners rather than vendors, collaborating closely throughout the shipping process. Simply handing off packages and disengaging creates gaps in service quality.

“What I found is everyone wants to create a solution that’s beneficial to both the customer, the shipper, and the carrier,” Anderson said. “When you work together, it’s a lot better.”

He advised against prioritizing the lowest shipping costs above all else, warning that cutting corners ultimately benefits no party. Instead, open conversations about operational challenges and customer needs lead to better outcomes for everyone involved.

Chewy currently partners with FedEx, the U.S. Postal Service, and OnTrac, according to the company’s website. Anderson noted that while adding more carriers increases complexity, tapping regional carriers can be handy when there’s an opportunity to provide better service in specific locations.

“That’s where regional carriers really do well, specifically kind of these rural and super rural areas,” Anderson said.

Anderson also serves on the board of Veho, a growing parcel carrier that supports brands like Macy’s, Sephora, and Lululemon, bringing additional insight into how emerging delivery networks can enhance customer experience.