Online Drugstore Dealings
Drugstore.com, a major Internet retailer of health, beauty and wellness products, has reported that net sales for its first quarter were $22.7 million, a sequential quarter-over-quarter increase of 23%. The Bellevue, Wash.-based firm also achieved a positive gross profit of $1.1 million, or 5% of total sales; however, it reported a first-quarter net loss, before amortization of intangible assets and stock-based compensation, of $38.9 million.
Drugstore.com says it added 295,000 new customers, a 42% increase in total customers over the previous quarter. Earlier this month, it welcomed its one millionth new customer, 13 months after launch. This growth is due in part to drugstore.com's partnerships with Amazon.com, RiteAid and GNC, and its purchase of Beauty.com.
Orders from repeat customers continued to climb, increasing from 44% in fourth-quarter 1999, to 50% of total orders for first-quarter 2000.
Other highlights include the launch of Version 2.0 of the Web site in March, the opening of a new East Coast Distribution Center in February, and the raising of $138 million through a secondary public stock offering and a private placement with Amazon.com, it says.
Separately, online drugstore DrugEmporium.com says it has been recognized with the TRUSTe Online Seal and HON (Health on the Net) Certification for its commitment to safeguarding its customers' interests. The recognition acknowledges the Columbus, Ohio-based firm's online privacy standards and accurate, up-to-date health information, it says.
The TRUSTe Online Seal Program is an initiative dedicated to building users' trust and confidence on the Internet. The TRUSTe seal displayed on the DrugEmporium.com home page assures consumers that the site meets San Jose, Calif.-based TRUSTe's requirements in the areas of disclosure, choice, access and security outlined in the Federal Trade Commission's fair information practices, says the company.
HON, a leading medical and health Web site authority, has developed an operating code of conduct aimed at standardizing the reliability and accuracy of medical and health information on the Internet. DrugEmporium.com's HON Certification advises customers that the health and wellness information on the company's site is accurate and up-to-date, it says.
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