How Skoon Cat Litter Used Shopify Capital to Cut Costs and Win 7,000 Subscribers

Introduction to Skoon’s Journey

When Skoon Cat Litter moved from a wholesale operation in South America to a subscription-based direct-to-consumer model in the US, the team met heavy freight charges, tight profit margins, and expensive customer acquisition. They had to ship bags of diatom pebbles across the globe, weather fluctuating sea rates, and maintain growth without raising prices.

The Challenge: Shipping Costs vs. Customer Experience

Every bag of Skoon starts in old lake beds in Argentina, loaded into containers that cross Brazil, then land in US warehouses. These freight moves sometimes cost more than the bag itself. On top of that, online ads in the competitive pet market eat up cash before new subscriptions pay off. Traditional banks wanted personal guarantees for loans or cards, and Skoon’s lack of physical collateral stalled approval. The result? A cash gap that threatened growth and customer trust.

The Solution: Shopify Capital and Shopify Credit

To sidestep bank hold-ups, Skoon chose Shopify Capital—fast, no-guarantee funding they used to order inventory during low-rate shipping windows. That funding covered big container buys when ocean rates dipped. Then, for marketing, they picked up Shopify Credit, a pay-in-full Visa® card that delivers cash back. This cover let them fuel ads, website updates, and field sales without juggling multiple payment platforms.

Execution: Timing and Tracking

The team synced shipping schedules with seasonal rate dips, placing large inventory orders just ahead of expected business spikes. Meanwhile, they kept an eye on ad spend, using real-time Shopify analytics to adjust creative and budget. They avoided overspending early in the month, then ramped up as orders flowed in. Together, smart timing and transparent dashboards kept costs in check and maintained a steady order flow.

Results: Sustainable Growth and Profitability

With the new finance mix in play, Skoon acquired 7,000 subscribers in under a year. They locked in inventory when freight was 30% lower than peak rates, saving thousands every week. Marketing bills paid by Shopify Credit earned cash back on design, travel, and ad fees, trimming overhead. By the end of 2023, the brand reported a profitable year without hiking product prices or pausing ad campaigns.

Key Metrics at a Glance

• 7,000 new subscription customers acquired within 12 months.
• Inventory ordered during low-rate windows, cutting freight spend by nearly a third.
• Fast access to funds, eliminating 45-day bank approval delays.
• Cash back on marketing, offsetting up to 5% of digital ad costs.

What’s Next for Skoon

Now that financing is dialed in, the team plans to expand into new product lines—like litter accessories and odor filters—while keeping the same lean inventory and ad-funding playbook. They’ll use Shopify Capital again to secure raw materials when rates drop, and continue to monitor subscriber retention to guide production runs.