Seattle: The online dominating giant opened up an Online Pharmacy on Tuesday, which provides an allowance to the customers to order medicines or prescription refills and will have it delivered to their house in a couple of days from the date of order.
Amazon’s powerful impact on the pharmaceutical space broke open the sector faster, was before the opening bell, the shares of CVS Health Corp dropped by 9%, and on the other hand, Walgreens and Rite-aid dipped to an estimate of 10%. The pharmacies have been dependent upon by a plethora of larger pharmacy chains for a substantial flow of shoppers who could grab a snack or a shampoo. The online services may be upped, but Amazon.com has gone to the extent of mastering it, and it has n indefinitely larger online store.
Though Amazon may have taken their time to gain prominence in availing off medications, its capacity to reach out to customers, especially amidst the pandemic, will urge many to but from them during the times of need. To start, Amazon will initially offer the commonly prescribed medications on Tuesday in the United States, including pills, creams, and refrigerated medicines like insulin. To facilitate the sale of drugs, shoppers need to make their profile on Amazon’s website and attach prescriptions there. The medications that are abused cannot be shipped, which also includes Opioids.
Amazon stated that most of the insurances could be excepted. However, suppose the shopper does not have insurance but yet is a prime member of Amazon. In that case, they can avail of the medicines at a discount from 50000 pharmacies all over the US, including Wallgreens, CVS, Walmart, and Costco. Amazon has been eyeing the health care industry for the last two years, starting with investing 750 Million dollars to buy Pill pack. This online pharmacy organizes packet-based medicines and also estimate the time and day they need to be taken. Amazon stated that Pill pack would continue to emphasize shipping medicines to people suffering from chronic conditions. CVS and Walgreens that have built around thousand of drugstores worldwide to get closer to the customers have been trying to find a way to regulate online shopping by offering same-day delivery. At the start of 2020, CVS experimented with prescription deliveries by using self-driving vehicles and Walgreens with the help of drones to facilitate same-day delivery minutes after ordering.
With this new move of Amazon, shipping companies have woken up to this situation and started delivering way too many packages of their own. Craig Garthwaite, the health economist, has witnessed Amazon’s numerous reasons to be an attractive option for patients to buy the prescriptions. Amazon has been a long term known entity that has come in fair use by the people and can make prescription price shopping a bit more pleasant. It could also be competitive for the pricing of generic drugs, as stated by Craig, who is a teacher at Northwestern University’s Kellogg School of Management. Amazon’s move is most likely to impact the smaller drug stores that don’t have the purchasing power of such a retail giant or have deals with major chains of drugstores have with the insurers and lure them to their stores for prescriptions.
Amazon also has a separate venture with the name Haven with JP Morgan Chase and Berkshire Hathaway to emphasize the improvement of the care they employees get and manage their expense. Walgreens is in partnership with FedEx to facilitate a delivery service which at least a day or two. The CEO of Walgreens, Stefano Pessina, told the analysts’ in Mid July, the company has witnessed an extraordinary demand for both home and online services amidst the Covid-19 pandemic. The collaboration of these companies helps customers monitor chronic conditions of the people like diabetes and provide exquisite services that Amazon cannot match. Amazon will continue to evolve and undoubtedly analyze their competitors and make a move that could surpass Walgreens and other reputed pharmaceutical companies.