Drugstore.com, founded in 1998, was an early e-commerce platform for health and beauty products with over 60,000 items. It quickly rose to prominence, going public in 1999 and acquiring millions of customers.
Despite its early success, Drugstore.com struggled to attract new customers and increase transaction sizes. Drugstore.com faced numerous obstacles, including stringent regulations, particularly in the prescription drug market. These challenges limited its ability to compete effectively with established pharmacy benefit managers and retail pharmacies. The company also struggled with logistical issues, particularly in handling and distributing prescription drugs. Specialized requirements such as cold storage and the need for licensed pharmacists added layers of complexity that Drugstore.com found difficult to manage efficiently. After being acquired by Walgreens in 2011, it was shut down in 2016 to refocus on Walgreens.com.
