Editing Pets.com (section)

==History==
On November 21, 1994, the Pets.com domain name was registered by [[Pasadena, California|Pasadena]]-based entrepreneur Greg McLemore.<ref>{{Cite web|url=http://whois.domaintools.com/pets.com|title=Pets.com WHOIS, DNS, & Domain Info – DomainTools|website=whois.domaintools.com|language=en|access-date=2018-06-18}}</ref><ref name=":1">{{Cite book|title=Pets.com Inc.: The Rise and Decline of a Pet Supply Retailer|last=Merlo|first=Omar|publisher=Ivey Publishing|year=2009|pages=5}}</ref> The Pets.com website launched in early November 1998 as a spinoff of WebMagic<ref>{{Cite news|url=https://www.webmagic.com/yahoo-news/|title=Yahoo! News – WebMagic|date=1998-11-04|work=WebMagic|access-date=2018-06-18|language=en-US}}</ref><ref name=":2">{{Cite news|url=https://www.webmagic.com/yahoo-finance-3/|title=Yahoo! Finance – WebMagic|date=1999-03-29|work=WebMagic|access-date=2018-10-29|language=en-US}}</ref> and Pets.com was incorporated in February 1999.<ref name=":1" /> After its start by Greg McLemore and Eva Woodsmall, Pets.com was purchased in early 1999 by [[Julie Wainwright]].<ref name=":2" /><ref>{{Cite news|url=https://www.newsweek.com/amazons-pet-projects-167136|title=Amazon's Pet Projects|date=1999-06-20|work=Newsweek|access-date=2018-10-01|language=en}}</ref> [[Amazon.com]] was involved in Pets.com's [[Series A|first round]] of [[venture funding]], purchasing a majority 54% stake in the company.<ref name="amazon">{{cite web |url=http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-newsArticle&ID=232871&highlight= |title=Amazon.com Announces Investment in Pets.com |date=March 29, 1999 |access-date=February 14, 2014 |archive-url=https://web.archive.org/web/20170620120324/http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-newsArticle&ID=232871&highlight= |archive-date=June 20, 2017 |url-status=dead }}</ref> Amazon, along with [[Hummer Winblad Venture Partners]] and Bowman Capital Management invested $10.5 million into Pets.com in March 1999.<ref>{{Cite news|url=https://www.marketwatch.com/story/sock-puppet-kills-petscom|title=Pets.com killed by sock puppet|last=Tarsala|first=Mike|work=MarketWatch|access-date=2018-06-22|language=en-US}}</ref><ref>{{Cite web|url=https://www.thefreelibrary.com/Pets.com+Announces+Financing+From+Amazon.com+and+Hummer+Winblad...-a054235220|title=Pets.com Announces Financing From Amazon.com and Hummer Winblad Venture Partners. – Free Online Library|date=March 29, 1999|website=The Free Library from [[Farlex]]|access-date=2019-01-29}}</ref> The [[CEO]] of Pets.com, [[Julie Wainwright]], said of Amazon's investment, "This is a marriage made in heaven".<ref name="amazon" /> By October 2000, Amazon had a 30% stake in the company.<ref name="Abelson">{{Cite news|url=https://www.nytimes.com/2000/11/08/business/technology-petscom-sock-puppet-s-home-will-close.html|title=TECHNOLOGY; Pets.com, Sock Puppet's Home, Will Close|last=Abelson|first=Reed|access-date=2018-06-12|language=en}}</ref> Pets.com spent most of the venture funding on large [[warehouse]]s and other shipment infrastructures, as well as purchasing their biggest online competitor at the time, Petstore.com in June 2000 for $10.6 million.<ref>{{Cite news|url=https://www.cnet.com/news/pets-com-to-buy-assets-of-rival-petstore-com/|title=Pets.com to buy assets of rival Petstore.com|date=2000-06-13|work=CNET|access-date=2018-06-06|language=en}}</ref><ref name="K. Ryan">{{Cite book|title=How Venture Capital Works|last=K. Ryan|first=Peter}}</ref>

A regional advertising campaign using a variety of media began, which included [[television]], [[radio]], [[Print ad|print]], [[outdoor advertising]] and a Pets.com magazine, which had its first issue published in November 1999. The first issue was sent to 1 million pet owners in the [[United States]] during the month it was first published.<ref>{{Cite news|url=https://multichannelmerchant.com/marketing/pets-com-publishes-print-magazine/|title=Pets.com publishes print magazine – Multichannel Merchant|date=2000-06-01|work=Multichannel Merchant|access-date=2018-09-28|language=en-US}}</ref><ref>{{Cite news|url=https://adage.com/article/news/pets-socks-competitors/1171/|title=Pets.com socks it to competitors|access-date=2018-09-28|language=en}}</ref><ref name=":0">{{Cite book|title=The Complete Internet Marketer|last=Neuman|first=Jay}}</ref><ref name=":3">{{Cite news|url=https://www.adweek.com/brand-marketing/iq-interactive-special-report-iq-qa-sock-dogma-40818/|title=IQ Interactive Special Report: IQ Q&A – Sock Dogma|access-date=2018-09-28|language=en-US}}</ref> Pets.com started with a five-city advertising campaign, which was expanded to 10 cities by Christmas 1999.{{Citation needed|date=October 2018}} The company succeeded in making its mascot, the Pets.com sock puppet, well known.<ref>{{Cite web|title=10 big dot.com flops – Pets.com (1) – CNNMoney.com|url=https://money.cnn.com/galleries/2010/technology/1003/gallery.dot_com_busts/|access-date=2021-02-08|website=money.cnn.com}}</ref><ref>{{Cite web|last=Andrew Beattie|title=Why Did Pets.com Crash So Drastically?|url=https://www.investopedia.com/ask/answers/08/dotcom-pets-dot-com.asp|access-date=2021-02-08|website=Investopedia|language=en}}</ref> The Pets.com site design was extremely well-received, garnering several advertising awards.{{Citation needed|date=October 2018}} In January 2000, the company aired its first national commercial as a [[Super Bowl]] ad which cost the company $1.2 million.<ref>{{Cite web|url=https://money.cnn.com/magazines/business2/business2_archive/2007/03/01/8401031/?postversion=2007022807|title=For startups, failure can be a good thing – March 1, 2007|date=2007-03-03|access-date=2018-10-29|archive-url=https://web.archive.org/web/20070303063805/http://money.cnn.com/magazines/business2/business2_archive/2007/03/01/8401031/?postversion=2007022807|archive-date=March 3, 2007}}</ref> That ad was ranked #5 by ''[[USA Today]]'''s Ad Meter.<ref>{{Cite news|url=http://admeter.usatoday.com/2015/01/21/best-super-bowl-commercials-2000-budweiser-mountain-dew/|title=Watch 5 of the best Super Bowl commercials from 2000|date=2015-01-21|work=Ad Meter|access-date=2018-07-21|language=en-US}}</ref> The company went public on the NASDAQ stock exchange in February 2000 and raised $82.5 million; the former Nasdaq stock symbol was IPET.<ref name=":4">{{Cite news|url=https://www.cnet.com/news/pets-com-raises-82-5-million-in-ipo/|title=Pets.com raises $82.5 million in IPO|date=2000-02-10|work=CNET|access-date=2018-06-07|language=en}}</ref><ref name="K. Ryan"/>

Despite its success in building brand recognition, it was uncertain whether a substantial market niche existed for Pets.com.<ref name="cheyfitz">{{cite book |url=https://books.google.com/books?id=mn_xucBVwzcC |title=Thinking Inside the Box: The 12 Timeless Rules for Managing a Successful Business |pages=30–32 |author=Kirk Cheyfitz |publisher=Simon & Schuster |year=2003 |access-date=2009-04-22 | isbn=978-0-7432-3575-4}}</ref> No independent market research preceded the launch of Pets.com.<ref name="cheyfitz" /> During its first fiscal year (February to September 1999), Pets.com earned $619,000 in revenue, and spent $11.8 million on advertising.<ref name="cheyfitz" /> Pets.com lacked a workable business plan and lost money on nearly every sale because, even before the cost of advertising, it was selling merchandise for approximately one-third the price it paid to obtain the products.<ref name="cheyfitz" /> Pets.com tried to build a customer base by offering discounts and free shipping, but it was impossible to turn a profit while absorbing the costs of shipping for heavy bags of cat litter and cans of pet food within a business field whose conventional profit margins are only two to four percent.<ref name="cheyfitz" /><ref name="haig">{{cite book |url=https://books.google.com/books?id=6o7SrLdgx8gC|title= Brand failures: The Truth about the 100 Biggest Branding Mistakes of All Time |pages=188–191 |author=Matt Haig |publisher=Kogan Page Publishers |year=2005|access-date=2009-04-22 | isbn=978-0-7494-4433-4}}</ref> The company hoped to shift customers into higher-margin purchases, but customer purchasing patterns failed to change and during its second fiscal year the company continued to sell merchandise for approximately 27% less than cost, so the dramatic rise in sales during Pets.com's second fiscal year only hastened the firm's demise.<ref name="cheyfitz" />

In September 2000, Pets.com opened a new customer service call center in [[Greenwood, Indiana]] and relocated the majority of its customer work force to [[Indiana]] in order to cut costs.<ref>{{Cite web|url=https://www.cnet.com/news/0-1007-200-2717582.html|title=CNET.com – News – E-Business – Pets.com moves part of litter to Midwest|date=2000-11-02|access-date=2018-08-29|archive-url=https://web.archive.org/web/20001102091508/https://www.cnet.com/news/0-1007-200-2717582.html|archive-date=November 2, 2000}}</ref> They aggressively undertook actions to sell the company. [[PetSmart]] offered less than the net cash value of the company, and Pets.com's board turned down that offer.{{Citation needed|date=October 2018}} The company announced on November 7, 2000<ref>{{Cite web|url=https://money.cnn.com/2000/11/07/technology/pets/|title=Pets.com goes out of business – Nov. 7, 2000|website=money.cnn.com|access-date=2018-07-26}}</ref> that they would cease taking orders on November 9, 2000 at 11am PST and laid off 255 of their 320 employees.<ref>{{Cite news|url=https://www.msnbc.com/msnbc-originals/watch/the-pets-com-phenomenon-789155395746|title=The Pets.com Phenomenon|work=NBC News|access-date=2018-05-21|language=en-US}}</ref><ref>{{Cite news|url=https://www.wsj.com/articles/SB973617475136917228|title=Pets.com Will Shut Down, Citing Insufficient Funding|work=WSJ|access-date=2018-07-26|language=en-US}}</ref> Pets.com had around 570,000 customers before its shutdown.<ref>{{Cite news|url=https://www.marketwatch.com/story/sock-puppet-kills-petscom|title=Pets.com killed by sock puppet|last=Tarsala|first=Mike|work=MarketWatch|access-date=2018-06-06|language=en-US}}</ref> Pets.com stock had fallen from its IPO price of $11 per share in February 2000<ref name=":4" /> to $0.19 the day of its liquidation announcement.{{Citation needed|date=October 2018}} At its peak, the company had 320 employees,<ref>{{Cite news|url=https://www.msnbc.com/msnbc-originals/watch/the-pets-com-phenomenon-789155395746|title=The Pets.com Phenomenon|work=NBC News|access-date=2018-06-27|language=en-US}}</ref> of which 250 were employed in the warehouses across the United States. While the offer from PetSmart was declined, some assets of Pets.com, including its domains, trademarks and subsidiaries such as Flying Fish Express, were sold to PetSmart in December 2000.<ref>{{Cite news|url=https://www.cnet.com/news/petsmart-com-snaps-up-rival-domain-name/|title=Petsmart.com snaps up rival domain name|date=2000-12-04|work=CNET|access-date=2018-06-18|language=en}}</ref><ref>{{Cite news|url=https://www.zdnet.com/article/pets-com-sells-name-to-rival-petsmart/|title=Pets.com sells name to rival Petsmart|last=Grenier|first=Melinda|work=ZDNet|access-date=2018-09-30|language=en}}</ref><ref>{{Cite news|url=https://www.ecommercetimes.com/story/5701.html|title=PetSmart.com Buys Pets.com Domain Name|access-date=2018-10-29|language=en}}</ref> As of 2025, the Pets.com domain redirects to PetSmart.com.<ref>{{Cite web|url=https://www.computerworld.com/article/2590029/petsmart-com-buys-url-of-former-rival-pets-com.html|title=Petsmart.com buys URL of former rival Pets.com|website=Computerworld|access-date=2021-09-24}}</ref>

Wainwright and nine other executives stayed during the liquidation and held a stockholders' meeting on January 16, 2001 to finalize the liquidation.<ref name=":5" /> Wainwright received $235,000 in severance on top of a $225,000 "retention payment" while overseeing the closure.<ref name=":5">{{Cite news|url=https://www.computerworld.com/article/2589870/retail-it/pets-com-to-finalize-liquidation-plans.html|title=Pets.com to finalize liquidation plans|last=Mearian|first=Lucas|date=2001-01-02|work=Computerworld|access-date=2018-07-18|language=en}}</ref> The company changed its name to IPET Holdings, Inc. on January 16, 2001 and liquidation of the company was completed on January 18.<ref>{{Cite web|url=https://www.sec.gov/Archives/edgar/data/1100683/000089161802001559/f80264e10-k.htm|title=IPET Holdings Form 10-K Period Ended 12/31/01|website=[[U.S. SEC]]|access-date=2019-04-26}}</ref>

=== Charity work ===
During the company's existence, Pets.com partnered with [[Best Friends Animal Sanctuary]] to start a [[Charity (practice)|charity]] called "Pets.commitment", which provided funding and support for [[animal shelter]]s, [[Animal-assisted therapy|animal therapy]], [[service dog]] programs, [[pet care]] and [[Wellness Coaching|wellness organizations]]. The charity's motto was "people helping animals, animals helping people."<ref>{{Cite web|url=http://www.pets.com:80/commitment/bestfriend_letter.html|title=Pets.commitment: Pets.com is partnering with Best Friends Animal Sanctuary|date=2000-05-29|access-date=2018-07-26|archive-url=https://web.archive.org/web/20000529102043/http://www.pets.com/commitment/bestfriend_letter.html|archive-date=May 29, 2000|url-status=live}}</ref> After the Pets.com website closed in November 2000, Pets.com donated more than 21 tons of dog food to help [[Musher]]s in [[Alaska Interior|Alaska's Interior]] in December 2000.<ref>{{Cite news|url=https://www.cbsnews.com/news/defunct-petscom-donates-dog-food/|title=Defunct Pets.com Donates Dog Food|access-date=2018-09-30|language=en}}</ref>