Shop-Apotheke Beats DocMorris in Terms of Net Sales. How Is It Going to End?

Online pharmacies are a thriving segment of eCommerce, and German companies represent a significant portion of this market. Shop-apotheke.com (rebranded as Redcare since 2023) and docmorris.de lead the German online pharmacy market.

Recent shifts and strategic maneuvers have placed one platform ahead of the other in terms of revenue. A management change in 2023 led to speculation about a possible takeover: Given the current data situation, how likely is it that one will overtake the other?

Close Performance During the Pandemic Years

During the pandemic years of 2020 and 2021, the two competitors were in a close race. Docmorris.de generated fewer net sales than shop-apotheke.com, with US$558 million versus US$636 million, respectively.

The two providers were on top of the times during those years, as the necessity to order health products online became paramount. Docmorris.de was actually ahead of shop-apotheke.com in 2021, at US$857 million against US$678 million.

The trend reversed quickly, however, when both platforms drew level in 2022. A significant move handed shop-apotheke.com the competitive advantage during that time, placing it several steps ahead of DocMorris.

When Shop-Apotheke Surged Ahead Due to a Competitive Advantage

E-prescriptions enable the transfer of prescribed medicines from the user’s health card to the platform or store for their immediate acquisition. Before the use of e-prescriptions became mandatory in 2024, shop-apotheke.com introduced that feature in 2022.

In contrast, docmorris.de launched the feature two years later, when it was legally mandated to enable e-prescriptions. Given the convenience of online prescription services, it is no wonder that consumers choose the site that offers them the technology earlier. According to news reports, issues with the new feature caused hindrances and frustrations for users.

Whatever the exact reason, net sales on shop-apotheke.com began surging in 2023. This was also the year the company welcomed the former DocMorris CEO as its new head. Starting with a lead of around US$150 million in 2023, shop-apotheke.com surpassed US$1.0 billion in net sales by 2024 and is expected to widen the gap to docmorris.de in 2025 even further.

Outlook: How Both Companies May Fare in the Future

Financially, Doc Morris lags far behind market leader Shop-Apotheke, which generates much higher net sales from first-party business and gross merchandise value (GMV) from third-party platforms.

But does that also mean it is going to take over the smaller competitor? Given the standing of their respective parent companies, which operate in similar Western European markets, and the change in executive leadership, it is becoming increasingly likely that RedCare will buy DocMorris.

Switzerland as a Playing Field of Company Competition

Some aspects must be considered, however, including RedCare's continued success across domains and regions and DocMorris's ongoing development. In May 2023, DocMorris (formerly Zur Rose Group) sold its Swiss business to Migros' Medbase.

In contrast, Redcare Pharmacy, expanded its presence in Switzerland through a strategic joint venture with Galenica in May 2023. This partnership combined Shop Apotheke's Swiss operations (shop-apotheke.ch) with Galenica's specialty pharmacy, Mediservice Ltd., creating the leading online pharmacy in Switzerland. Redcare Pharmacy holds a 51% stake in the joint venture, while Galenica owns 49%.

Opposition From Physical Pharmacy Uproar

Both online pharmacies face opposition from physical pharmacy associations, which regularly accuse the market leaders of regulatory violations and unsustainable business practices.

For instance, DocMorris's attempt to introduce a digital consultation and medication dispensing service in Hüffenhardt, Germany, faced legal challenges and was ultimately deemed to violate the Arzneimittelgesetz (Medicines Act) and Apothekenbetriebsordnung (Pharmacy Operations Ordinance), leading to its closure. Such regulatory hurdles and resistance from traditional pharmacy associations could potentially limit the development and expansion prospects of both platforms.