Amazon launches online pharmacy [Video]

WHAT YOU NEED TO KNOW:

• E-commerce company Amazon has opened an online pharmacy store, offering various types of medications.
• The online pharmacy is expected to make waves in the pharmaceutical industry as the demand for online shopping grows amid the coronavirus pandemic.
• Shoppers would need to make an Amazon profile on the company’s website and could also avail of the Prime membership to get discounts.

Amazon has launched an online drugstore to cater to the medical needs of shoppers. Medicines such as insulin, inhalers, and other prescriptions, can now be easily purchased and delivered within a matter of days.

The e-commerce company has teamed up with Cigna’s Evernorth subsidiary to offer InsideRx card for its Prime members. This endeavor aims to provide discounts on branded prescription drugs albeit without insurance at Amazon Pharmacy, including other drugstores.

“We view the launch of Amazon Pharmacy as a continuation of Amazon’s efforts to improve the value proposition of its Prime membership program while capturing an increasing percentage of wallet share/household spend among existing members as Prime penetration continues to mature in the US,” UBS analyst Eric Sheridan said in a research note.

The company’s movies expected to make an impact to the whole pharmaceutical industry as people can now get their medicine without physically going to a drug store.

In another perspective, big retailing stores CVS and Walgreens under a threatening position as they rely on their pharmaceutical sales to attract shoppers from visiting them. 

Amid the continuous coronavirus pandemic and the growing demand for online shopping, Amazon has stepped up its game in merchandising.

In terms of market share, drugstore chains have declined, with CVS losing about 9% and Walgreens by 12%. Meanwhile, Amazon shares grow at 2.6%.

Starting Tuesday, various medicines will be available which include creams and pills. Shoppers would need to register to Amazon’s website and make a profile. Doctors would also need to submit prescriptions before the pharmacy could release the medicines. 

Shoppers are able to compare and contrast medicines such as branded and generic types. When the shopper avails the Prime membership, he could buy any drug at a discounted price even without insurance. Prime members could get up to 40% discount for branded medications and up to 80% discount for generic drugs. Insurance is generally accepted according to Amazon.

In a statement, vice president of Amazon Pharmacy TJ Parker said: “We work hard behind the scenes to handle complications seamlessly so anyone who needs a prescription can understand their options, place their order for the lowest available price, and have their medication delivered quickly.”

Source: CBS News