The Internet's Most Profitable Drug Store - March 6th, 2001
Livonia, MI – March 6, 2001: Most internet retailers are following a similar life cycle. They went public, grew rapidly and now they are going bankrupt. The online drug store category is no different. However, there is one website, Shopinprivate.com, that is bucking the trend. Founded in August of 1998, this early entry started making money almost immediately. Even today, during these lean times, sales at Shopinprivate.com continue to increase. Repeat customers keep coming back, and satisfaction is at an all time high.
On the other hand, Drugstore.com and PlanetRX are faltering. In the first 9 months of last year Planet RX lost $128M on sales of $28M. On March 12th they will close. Over the entire year Drugstore.com lost $193M on sales of $110M. Drugstore.com currently only has $130M in cash left and they don’t expect to be profitable until 2004. While this was happening Shopinprivate continued to thrive. Last year on sales of over $1M, Shopinprivate made a net profit of over $70k.
Shopinprivate has succeeded by focusing on a consumer need. They have clearly defined their target and catered to it. Their business plan suggests they will reach a maximum size of $10-15M in sales per year. This level of sales wouldn’t make the investors in Drugstore.com very happy but Shopinprivate knows they have a profitable niche. In the future, that alone may be considered an internet success story.
Tom Nardone the President of Shopinprivate.com is available for questions, comments or conversations. Normally he is available from 9 AM to 6 PM EST at 1-800-809-0610.