Amazon Introduces Amazon Pharmacy: A Pharmaceutical Home Delivery Service

Making a big leap into the $312 billion US pharmacy industry, Amazon.com, Inc. (Amazon), has launched Amazon Pharmacy, a digital drugstore offering home delivery for prescription medication. Amazon Pharmacy will offer a range of generic and brand-name drugs. While Amazon Pharmacy will only initially be available in 45 US states, Amazon has announced its plans to expand the availability of Amazon Pharmacy in the near future.

Customers will be able to sign up for Amazon Pharmacy by creating a “secure pharmacy profile”. The profile will allow customers to add information about their health insurance, any outstanding medical issues, and any regular prescriptions. Amazon Prime members will get additional perks for joining Amazon Pharmacy. These perks include free, two-day delivery on orders, and discounts on medication. Amazon Pharmacy will accept “most” insurance plans. Interestingly, however, Amazon claims users, when paying without insurance, will be able to save up to 80 percent off of generic and 40 percent off of brand-name medications.

Amazon’s foray into the pharmaceutical industry is not entirely unexpected, as the Seattle-based company already has some experience in the sector. The online retailer sells medical equipment and supplies, as well as non-prescription drugs and other related goods in other nations, such as Japan. In 2018, the e-commerce giant bought pharmaceutical delivery start-up PillPack for just under US$1 billion. PillPack was later rebranded as PillPack by Amazon. PillPack delivers medications to customers with chronic conditions who are taking multiple daily medications. Nonetheless, PillPack’s infrastructure and relationships with healthcare providers coupled with Amazon’s prowess in logistics, and its network of warehouses and drivers, made Amazon’s entry into the pharmaceutical industry as a logical next step. The launch of Amazon Pharmacy comes at a time when more people are staying at home as a result of the COVID-19 pandemic, making the prospect of delivery medication more attractive to consumers.

With Amazon moving into almost every market there is, it will be interesting to see what steps the tech giant takes on next.

Author: Nargis Fazli