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Wednesday · 3/11/2026 · Issue #314
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Quick Hits

📞 Pet tech gets weird at MWC 2026 as PetPhone lets your dog initiate voice calls through jump detection

😡 RSPCA backs 10-point breeding health assessment as Crufts 2026 reignites UK debate over flat-faced dogs and extreme conformations

Senate Small Business Committee holds first-ever pet industry hearing Wednesday with franchise, DTC treats, and vet practice owners testifying

20M US pets live in poverty with their families

🫰 Pet grooming reframes as wellness as owners spend $11,000/year on hand stripping

💇 Woof Gang on track for 60-70 new locations in 2026 as pet humanization drives premium grooming demand

Deep Dive · Marketing
Net Profit Per Minute: Inside the Pet Brand That Ditched Meta for Livestreams
One founder is doing $3K-$4K per hour selling dehydrated carp heads and sweet potato bones on Whatnot. Zero ad spend. 50% customer retention. And live commerce is an $807B global market where pet barely exists..
9 min read

In May 2025, Dewar Gaines turned off all of Gaines Family Farmstead's Meta advertising.

Then he turned off Google.

The only paid channels left were Amazon and Chewy, where customer acquisition costs still made sense.

Everything else went to a format that most pet brands haven't tried and most pet industry executives haven't heard of: live selling.

Eight months later, the family-run pet treat company is projecting $2 to $3M in annual revenue from live selling alone.

That's from a brand that did $2.2M in total revenue in 2023. Gaines is doing $3,000 to $4,000 per hour on live shows, acquiring 19 to 30 new customers per session at zero ad spend, and maintaining a 50% customer retention rate.

He was the first pet brand in the world to sell on Whatnot, a live-auction marketplace valued at $11.5B after its Series F round in October 2025.

"When I say I believe it's the future of e-comm, I mean that wholeheartedly. So much so that we turned off digital advertising."

Dewar Gaines

This is either the most important channel shift in pet DTC since the rise of subscription boxes, or it's a founder with a gift for salesmanship extracting outsized returns from a format that won't generalize.

The data suggests it's closer to the first one.

The economics that are too hard to ignore

Before Gaines went live, his best customer acquisition cost on paid social was $30 per new customer.

On a good Whatnot show, he acquires 20 new customers in an hour.

The math - $600 worth of new customers acquired with zero media spend. The only cost is his time.

“Net profit per minute is an insane performance indicator.”

Dewar Gaines

The KPIs he tracks tell you how seriously he's treating this as a channel, not a side project: revenue per hour, new customers per hour, net profit per minute, customer engagement per hour.

"I can go live for an hour and do $1,500 to $2,000 in direct-to-consumer revenue," states Dewar.

After roughly 30 shows on Whatnot, Gaines had built over 3,000 followers with 1,500 active buyers, and that was about 5 months ago.

Looking at their profile today they have 9.9K followers, 3K 5-star reviews, and 17K items sold.

Some customers spend $150 to $200 every time he goes live.

The company is up 170% year-to-date on Amazon with a flat ad budget, and about 35% of its Amazon revenue comes from Subscribe & Save, well above the 20-25% industry norm.

The plan is to scale from the current cadence to 20 hours per week of live selling in Q4, then 40 hours per week by late Q1 2026, across Whatnot, TikTok Live, and Talk Shop Live.

Gaines is doubling his warehouse square footage and building a dedicated live shopping studio inside it.

He's training team members to host shows so the channel isn't founder-dependent.

"If we get to 40 hours a week next year, we'll do $2 to $3M in topline revenue pretty easily," he said.

To do that volume through traditional digital advertising at a $30 CAC would cost roughly $24,000 per week in ad spend.

Live selling requires zero.

How the shows actually work (programming)

The format isn't a static product demo. It's programmed entertainment with a purchase layer built in.

Monday Madness. What the Duck Wednesday, where everything is duck products at steep discounts.

I tuned into a Monday Madness show hosted by Dewar

Freak Show Friday, featuring unusual items like dehydrated carp heads and duck feet.

Sunday Showdown with 35% off the entire show. Auctions, flash sales, product giveaways tied to purchase windows.

"For the next five minutes, anyone that makes a purchase gets entered into a drawing to win a free $30 bag of dog treats," Gaines described. "There's a lot of psychology going into how we program the shows and when we offer what."

The key mechanic is frictionless checkout.

On Whatnot, a single thumb swipe completes a transaction. No checkout page, no credit card entry.

The impulse-to-purchase gap is essentially zero, which changes the entire conversion dynamic.

Gaines processes 150 to 200 orders per hour during live shows.

The format also generates a massive content library.

Over 30 hours of live selling footage gets clipped into 30-second shorts for social distribution, wholesale customer education emails, and product launch announcements.

"What used to take a team member one or two days to develop a really good piece of written content to educate a consumer, I can do in 30 seconds," Gaines said.

He's not wrong about the efficiency. But the content advantage compounds in a way that most brands aren't thinking about.

Every hour live produces dozens of authentic, unscripted product demos.

A 30-second flash sale where Gaines explains the omega-3 benefits of a carp head while someone buys it in real time is exactly the kind of native content that outperforms studio-produced ads in every feed algorithm.

The brands creating that volume of authentic footage will have a structural advantage in every algorithm-driven channel, whether or not the viewer ever watches a live show.

The comparison Gaines draws to independent retail is instructive. "Part of the reason people go to independent pet shops is because you can engage with the owner or the manager and they know everything about every single one of their products, the health benefits, the supply chain," he said.

"I can now go in front of an audience of people and explain intricately each product. They can say, 'Hey, my dog has X, Y, and Z allergies. What should I try?'"

The live format collapses the education gap that DTC brands normally have to solve through product pages, email sequences, and paid retargeting.

On live, the founder answers the objection and closes the sale in the same breath.

There's also an interesting dynamic around the show itself as a customer acquisition tool.

Gaines runs auctions, time-limited giveaways, and loss-leader pricing on specific shows to drive new viewers in.

A 6-inch bully stick at $1, sourced directly from his factory, when Petco sells the same thing for $3. "It's kind of like a treasure hunt," he said. "We don't always sell the same things. It's not always available. People request things."

The scarcity and variability create appointment behavior, which is the same mechanic that keeps QVC's repeat customers spending $1,460 per year.

We sat down with Dewar Gaines for a full marketing deep dive.
The influencer campaign that doubled his CAC but revealed a retention goldmine. The no-budget 4th of July ad that crushed. Why he sends up to 15 email campaigns a month. And the tactic that drove foot traffic to 200+ retail stores.

The $807B market that most pet brands are ignoring

Live commerce is not speculative. It's a $807B market in China, representing roughly 24% of all online retail.

In the US, livestream e-commerce sales hit an estimated $44B in 2024 and are projected to reach $68B by 2026, crossing 5% of total e-commerce.

McKinsey found that 57% of Chinese consumers had participated in live commerce versus just 5-7% in the US, with American users overwhelmingly new to the format (78% were first-time or sub-one-year users).

The conversion rates justify the attention.

McKinsey reports live commerce can deliver up to 10x higher conversion than standard e-commerce.

Vendor benchmarks cite 9-30% conversion ranges versus 2-3% for traditional online retail.

The results are showing up across CPG and DTC outside pet, too.

Skincare brand goPure reported $1M in revenue from 483 hours of TikTok Live in 2025, implying roughly $2,070 per hour of streaming.

Crocs reported $1M in sales on a single TikTok Shop Super Brand Day.

Pacsun did $20M in TikTok Shop sales in 2024.

These are not pet companies, but the economics translate directly to any brand selling physical products with a story to tell.

The platform landscape is consolidating around a few players. Whatnot reportedly exceeded $8B in GMV in 2025, more than doubling 2024.

TikTok Shop claims 70M products across 750 categories, with brands and creators hosting over 8M hours of live shopping sessions in the US in 2024.

Amazon Live is expanding distribution to Prime Video, and QVC still does $9B in annual net revenue with 91% of shipped sales coming from repeat customers who spend an average of $1,460 per year.

Meta, notably, went the other direction. Facebook shut down live shopping in October 2022. Instagram followed in March 2023.

Those exits are either a bear signal for the format or a sign that Meta couldn't figure out something the purpose-built platforms could.

Given Whatnot's $11.5B valuation and TikTok Shop's growth curve, the market seems to be voting for the latter.

Pet is a white space

Here's the part that should matter most to operators reading this: pet is almost completely absent from live commerce.

On Whatnot, the dominant categories are sports and trading cards, women's fashion, toys, and beauty, which together account for 74% of US sales.

Pet exists as a tag but has no measurable share.

On TikTok Shop, pet products are present (individual SKUs show tens of thousands of units sold), but there's no published pet category GMV and almost no trade coverage of pet brands using the platform for live selling.

The trade press is starting to notice.

Petfoodindustry.com reported on Noochies! launching a TikTok Shop presence in August 2024.

The coverage is thin. Nobody is publishing seller economics, platform strategies, or case studies with actual revenue numbers.

That vacuum is the opportunity.

Gaines Family Farmstead's numbers aren't just interesting because they're strong. They're interesting because they're essentially the only published unit economics for a pet brand doing live selling at any meaningful scale.

APPA's most recent industry data notes that Gen Z pet ownership grew 43.5% from 2023 to 2024, and that TikTok, YouTube, and Instagram play a central role in how that demographic discovers and engages with pet products.

A Cascadia Capital industry overview argues that social platforms are evolving from marketing channels into full sales channels, with younger generations reshaping product discovery and purchasing.

The brands that show up first in a category with no established competition get to define the format. Gaines knows this. "We were literally the first people, first brand to be selling on Whatnot," he said. "Being the first mover, we have some unique advantages."

Where this breaks

The honest assessment is that live selling has real structural limitations that the enthusiasm can paper over.

The biggest one is founder dependence.

Gaines is a natural salesman with eight years of product knowledge, a compelling family brand story, and obvious comfort on camera. Not every founder has that. Not every team can hire for it.

He acknowledged this directly: "Talking for an hour straight or two hours straight, my longest stream was two and a half hours.

It's exhausting emotionally, verbally, physically."

There's also a critical nuance in TikTok's own data that complicates the "live is everything" narrative.

According to tracking by Charm.io reported in Modern Retail, live's share of TikTok Shop sales peaked at 26% in July 2024 and declined to 18% by July 2025.

Pre-recorded creator video now drives roughly two-thirds of TikTok Shop revenue.

The number of creators making sales grew from about 11,800 to over 184,000 in that same window.

In the US, TikTok commerce is increasingly a short-video-first, live-second format.

That doesn't invalidate live selling, but it means the creator content layer may matter more than the live stream itself for most brands.

Then there's platform risk.

TikTok's regulatory situation remains unresolved. The Supreme Court upheld the divest-or-ban law, and a US joint venture structure is in negotiation as of early 2026.

Any brand building significant revenue on TikTok Shop is building on rented land with an active zoning dispute.

Gaines is hedging this by selling across Whatnot, TikTok, and Talk Shop Live simultaneously, which is the right move.

And the convenience barrier is real.

McKinsey reports that 32% of US consumers cite convenience as the biggest obstacle to live commerce adoption.

Americans are not appointment shoppers the way Chinese consumers are.

The US version of live selling may end up looking less like scheduled QVC-style programming and more like a content-generation engine that produces clips for algorithmic distribution.

What this means for the rest of pet

Gaines made a prediction that's worth taking seriously: "I believe that every e-comm platform will have a live shopping component within the next 18 to 24 months."

He also made one that should get independent retailers thinking…"Hey, Sally Joe's Dog Shop on the corner in Birmingham.

You should be going live once a week and inviting all of your customers to view your show and you introduce new products there, and then they pick it up in store."

The structural advantage of live selling for pet specifically is that the category rewards exactly what live does best - education, trust building, ingredient storytelling, and repeat purchasing cadence.

QVC's filing shows that 91% of its revenue comes from repeat buyers.

Gaines is already seeing 50% retention.

Pet treats are a high-frequency, story-driven product category where the founder can explain why a dehydrated carp head is good for your dog's coat and close the sale in the same sentence.

That education-to-purchase pipeline is shorter on live than anywhere else.

The question isn't whether live commerce works for pet. Gaines has already proven the unit economics.

The question is whether the rest of the industry notices before the white space closes.

"Puppy vaccines" (46K/mo, +20% YoY) and "kitten vaccines" (12K/mo, +33% YoY) are both climbing steadily — a new-pet-parent signal that tracks with APPA's data showing Gen Z pet ownership up 43.5% from 2023 to 2024. Worth noting: pet vaccine hesitancy is rising in parallel, meaning a growing share of these searches aren't "where do I get vaccines" but "should I get them at all." Brands and veterinary platforms competing for these queries are navigating both first-time education and active skepticism at the same time.

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