Although a bit pricey for a dog bed it is quite possibly the cutest dog bed concept I’ve ever seen. You can purchase a separate pillow insert for your cupcake or you can make your own.
Another option is to fill it with old clothing since your dog probably loves cuddling up with your laundry anyway! Then you can toss the clothing in the wash and easily clean the polyethylene shell as you would any plastic surface.
I ran into them when I was at the New York International Gift Fair and had a chance to feel the quality of the cake. They seem very durable!