Amazon sent shock waves through the pharmacy world recently, when the global company announced its plans for rapid expansion into the market.
Amazon Pharmacy allows customers to complete an entire pharmacy transaction on their desktop or mobile device through the Amazon App. Customers can
add their insurance information, manage prescriptions, and choose payment options before checking out.
Members of Amazon Prime can also have access to free two-day delivery and discounts of up to 80% on generic medicines and 40% on prescribed brand-name drugs.
Amazon is no stranger to disrupting industry, and this move is a direct competitive threat to retail pharmacy incumbents.
Amazon’s pharmacy plans include rapid expansion into the trillion-dollar healthcare care and insurance sector, creating a buffet of healthcare-related acquisitions, rolling out expedited drug shipping, and drug discounting and perhaps shaping the pharmacy of the future.
It all started in 2018 when it paid a steep price of nearly $1 billion to acquire the mail-order online pharmacy PillPack, outbidding its closest rival Wal-Mart.
With the purchase of PillPack, Amazon not only set its eyes firmly on the retail pharmacy business, but it’s also slowly including branding.
The importance of this announcement isn’t just about the pharmacy business, it’s about the possibility of many new entrants in multiple markets disrupting existing distribution. The growth of e-commerce and the ease of distribution means that many industries will be under pressure to change how their products and services get sold and consumed.
Whilst the news is far from Ireland shores at present, one community pharmacist told Irish Pharmacy News, “What Amazon will always miss is what is really at the heart of pharmacy, and that is the community aspect.
“Pharmacy is about much more than dispensing medication, customers need face-to-face interaction with their local pharmacist. There are many services offered by high street pharmacies that simply cannot be replicated by online providers such as Amazon. Community pharmacy is about much more than just pharmacy, and more than just giving patients their medicines.”
