Two years ago, when Amazon acquired PillPack, which is a prescription medicine delivery service, it was well known that the global e-commerce giant would soon be invading the healthcare space.
Finally, that moment has now arrived!
On Tuesday, Amazon announced the launch of its own online prescription medication ordering and delivery service called Amazon Pharmacy.
Customers who want to avail this service will need to add their insurance-related information, prescriptions and payment options on the Amazon portal. After that, they can buy the most commonly available medicines, including creams, pills, ointments etc.
Now, note that this is not the e-com major’s first step into the healthcare business. In 2019, Amazon launched its very own line of over-the-counter drugs. The launch of Amazon Pharmacy, however, broadens their push into this market which in turn opens up yet another source for collecting bigger revenues.
Also, one must note that this isn’t merely the ever-continuing expansion of Amazon’s empire. At the core, Bezos has always been geared towards making the company a ‘one-stop-shop’ for all consumer needs. Thus, seeing how pharmacy and grocery shopping often go hand in hand, it makes sense for them to include the option of ordering medicines along with their existing brand items, Amazon Fresh, Whole Foods and physical Amazon grocery stores. Now, Amazon customers can be assured to get a more complete experience.
The e-commerce giant, besides rolling out the basic Amazon Pharmacy service, has also launched some special features for their Prime members exclusively. The company, in a statement, said those who are subscribed to Amazon Prime are eligible to receive unlimited free two-day delivery on Amazon pharmacy orders along with receiving discounts when paying without insurance.
These special features can be accessed by Prime members when they are checking out after adding all the required medications in their cart. Amazon will be making available everything, including branded and generic versions of widely available medicines in different forms and dosages.
With Amazon Pharmacy, users can expect complete transparency as the company lets customers compare prices with their insurance co-pay as well. Customers can choose to opt the lowest pricing option available to them without insurance or with savings on their Prime prescription savings plan. Apart from this, as a cherry on top, Amazon is staffing for a pharmacy service accessible 24/7 so that you can get all your questions answered about the various different medicines.
Global Online Pharmacy Market
The worldwide online pharmacy services market is projected to hit $131 billion in revenue by the year 2025 while prescription drugs have been estimated to be a $904 billion industry which will grow to nearly 1.3 trillion by 2025.
The market is expected to clock an impressive 20% CAGR between 2019 and 2024. The increasing global penetration of internet and smartphones amplified the adoption of online shopping and online players have formed a view that there could be no better time than now to jump into online pharmacy market and capitalise on existing customers who are quite comfortable with buying products online.
Therefore, Amazon getting into this space indicates that they will bite off a significant portion of the global market space of the same with their widespread presence across different countries.
Considering the war chest Amazon is capable to create, the excellent customer support and superb delivery service, it is safe to assume that the eCommerce giant has set its eyes on the lion’s share of the market. The unparalleled access to consumers’ data and their buying preferences provide Amazon have an edge over its competitors who are also trying to penetrate the online pharmacy market.
All in all, it is safe to say, the entire pharma sector is all set to be shaken up as this giant has finally stepped foot into it. How well consumers take to this newly available service is something we are yet to see. We will keep you updated on all future developments. Until then, stay tuned.