Starting a web shop – the four success factors of PharmaPets
In 2018, PharmaPets launched its e-commerce platform for pet food. Four years later, the annual turnover of the East Flanders start-up has exceeded 40 million Euros.
In 2018, PharmaPets launched its e-commerce platform for pet food. Four years later, the annual turnover of the East Flanders start-up has exceeded 40 million Euros. By 2026, the company hopes to have generated 130 million Euros in the three countries in which it currently operates. The secret? Founder Sven De Waele believes there are four success factors.
1: Unique positioning
The market for pet food is massive and has a large number of players - some with turnover in the billions. As a start-up, how do you make a difference? ‘Certainly not by being a copycat,’ Sven laughs. ‘We saw potential in the diet food segment for pets with medical conditions. My partner and I combined my years of experience as a pioneer in e-commerce with her knowledge as a vet.’
‘This gave rise to a unique concept – an online shop with a high-quality range of pet food brands that you can only find at veterinary practices. Improving a pet’s health is our focus. The story began in our garage. The online shop was an immediate success in Belgium and the Netherlands. Acquisition of the French Vetostore in 2020 yielded spectacular growth figures. Today, we are a team of seventeen, including four vets.’
1: Unique positioning
The market for pet food is massive and has a large number of players - some with turnover in the billions. As a start-up, how do you make a difference? ‘Certainly not by being a copycat,’ Sven laughs. ‘We saw potential in the diet food segment for pets with medical conditions. My partner and I combined my years of experience as a pioneer in e-commerce with her knowledge as a vet.’
‘This gave rise to a unique concept – an online shop with a high-quality range of pet food brands that you can only find at veterinary practices. Improving a pet’s health is our focus. The story began in our garage. The online shop was an immediate success in Belgium and the Netherlands. Acquisition of the French Vetostore in 2020 yielded spectacular growth figures. Today, we are a team of seventeen, including four vets.’
2: Make smart choices based on data
Growth is about making the right decisions. What do you do, what don’t you do? ‘There are 1000 things that could be better about our website,’ says Sven. ‘But will those things benefit the customer? Focus on added value – that way, your customer will continue to perceive you as the party with an edge over competitors.’
‘As a solely online operator, we can measure data a lot. Data help us to make smart decisions. One thing we have seen is that contact with the vet motivates customers to come back. Those repeat customers are an important revenue stream. We know which parameters are really important in this respect, which KPIs to keep an eye on and how to interpret the data. With this, we can adjust our processes.’
2: Make smart choices based on data
Growth is about making the right decisions. What do you do, what don’t you do? ‘There are 1000 things that could be better about our website,’ says Sven. ‘But will those things benefit the customer? Focus on added value – that way, your customer will continue to perceive you as the party with an edge over competitors.’
‘As a solely online operator, we can measure data a lot. Data help us to make smart decisions. One thing we have seen is that contact with the vet motivates customers to come back. Those repeat customers are an important revenue stream. We know which parameters are really important in this respect, which KPIs to keep an eye on and how to interpret the data. With this, we can adjust our processes.’
3: Select your e-commerce platform with care
E-commerce is often an accelerator for growth. You need to choose a platform that can support your strategy in the long term. ‘Our first web shop was built with Magento Open Source – basic and low-budget,’ recalls Sven. ‘What I could do myself, I did do myself. I’m still active on the Magento marketplace, actually. You will find thousands of themes and extensions. It’s informative, highly recommended.’
‘When we got our international breakthrough, we moved to the paid-for licensing model from Magento Commerce. It’s scalable, more secure and provides insight into all relevant KPIs. It also offers better tools for customer retention and segmentation. This helps us evolve from a transaction-oriented web shop to a relational platform. Our vets share tips and tricks or develop plans for healthy nutrition tailored to individual pets. We’ll soon be offering front-line advice with consultations via video call and chat functionality. We have also implemented a Magento extension for subscriptions. Three months after launch, these account for 25 per cent of sales in the Netherlands.’
With the integration of Vetostore, PharmaPets now operates four web shops, all driven by a single Magento engine. As growth increases, product management becomes more complex. Pimcore centralises all product information and is the single source of truth.
4: Be in it for the long run with employees and partners
‘Choose employees and partners who set the bar high and are in it for the long run,’ advises Sven. His team is a healthy mix of ample experience, youthful enthusiasm and commitment to work. Long-term commitment is also key when it comes to selecting partners. Sven has been working with Studio Emma since 2010. ‘Their Magento and Pimcore team is remarkably stable. Many of their key people have been there for the past thirteen years. They know where we come from and where we are heading. They are collaborative thinkers. We know exactly what we can do and what we can expect from one another. We are transparent with one another about plans, ambitions and performance. Mutual understanding is a real asset.’
4: Be in it for the long run with employees and partners
‘Choose employees and partners who set the bar high and are in it for the long run,’ advises Sven. His team is a healthy mix of ample experience, youthful enthusiasm and commitment to work. Long-term commitment is also key when it comes to selecting partners. Sven has been working with Studio Emma since 2010. ‘Their Magento and Pimcore team is remarkably stable. Many of their key people have been there for the past thirteen years. They know where we come from and where we are heading. They are collaborative thinkers. We know exactly what we can do and what we can expect from one another. We are transparent with one another about plans, ambitions and performance. Mutual understanding is a real asset.’