Photo Credit: WSJ.com
Amazon recently launched an online pharmacy to expand their trillion dollar company. It will offer services such as ordering and filling prescriptions in addition to delivery of medications by mail.
With an increase in consumers ordering medications by mail during the COVID-19 lockdown, the pharmaceutical industry has become even more successful. Prescription drugs are worth hundreds of billions of dollars. With that being said, Amazon will now be a major competitor for companies such as Walmart, CVS, Walgreens, Good Rx, and more. Even though these companies have offered home delivery, Amazon has a broader focus. In 2018, Amazon began a startup company, PillPack. PillPack focuses on customers who take multiple prescriptions and allows them to order and receive their medication in an affordable and timely fashion. Amazon has rebranded PillPack to be a part of Amazon Pharmacy.
Consumers will be able to order generic and name brand drugs. This will include but is not limited to insulin, inhalers and blood pressure medicine with the exception of controlled substances such as opioids. The company plans to accept most insurance plans, but also offers its own discount program for paying users who are not insured. According to Amazon, “Prime members will be able to save up to 80% off generic and 40% off brand name medications when paying without insurance.” It will offer free two day delivery for Prime subscription members, and cost $119 a year in the United States. Customers who do not have Prime will receive free delivery within five days or they can pay $5.99 to upgrade to two day delivery. This will be available in 45 states which excludes Hawaii, Illinois, Kentucky, Louisiana and Minnesota.
Anyone who is over the age of eighteen can sign up by making a secure pharmacy profile. This includes optional information you wish to include such as health insurance, medical issues, allergies and regular prescriptions. Amazon Pharmacy customers will be able to save on medication bought in person from over 50,000 pharmacies in the United States such as Rite Aid, CVS, Walmart and Walgreens.
In addition to Amazon providing a new method of ordering and receiving prescription drugs, other competitor pharmacies’ stocks have actually decreased. According to CNBC in their online article written by Christina Farr and Annie Palmer, “Amazon jumps into the pharmacy business with online prescription fulfillment, free delivery for Prime members. CVS Shares fell 8.6% Tuesday. Walgreens Boots Alliance dropped 9.6%. Shares of Rite Aid slid 16.2%. Good Rx, which helps consumers find discounts on prescription drugs fell 22.5%. Amazon shares closed slightly higher.” This can be a start to a major change in how we order and consume medications here in the United States.
Amazon’s Senior Vice President of North American Consumer, Doug Herrington stated, “As more and more people look to complete everyday errands from home, pharmacy is an important and needed addition to the Amazon online store.” He suggests this will work in the company’s favor, but provides great benefits to consumer
