A little over two years after acquiring prescription drug delivery service Pillpack for $753 million, Amazon finally launched Amazon Pharmacy, an online and mobile prescription drug ordering, and fulfillment service.
Using secure pharmacy information, customers can add insurance information, manage prescriptions, and choose payment methods through Amazon’s services. In another small push to a wider range of medical services, not just selling items, users are provided with “self-service” tools on the Amazon portal. They can also choose to pass Talk to the pharmacist on the phone for advice:
“A friendly and knowledgeable pharmacist can answer questions about medication 24/7.”
After launching its own over-the-counter drug product line in 2019, this is arguably the most extensive promotion of Amazon’s healthcare business to date. It can bring new revenue opportunities for the company; especially with the ongoing COVID-19, the popularity has prompted consumers not only to need more remote care but also to use online channels to meet all their shopping needs.
This is not just Amazon’s continued expansion as a one-stop medicine and healthcare store. For many consumers, shopping in pharmacies and shopping in grocery stores go hand in hand (of course, for decades, many independent pharmacies have become more and more like food stores, and food sellers also have pharmacy counters).
Combine it with Amazon’s very aggressive and ambitious grocery store-reflect its drug strategy by covering its brand as well as the brands purchased (including Amazon Fresh Foods, Whole Foods, Amazon private label products and physical Amazon grocery stores) -Providing a more complete experience for the company, shoppers can more fully meet their shopping needs using only Amazon.
Although Amazon Pharmacy currently appears to be only launched in the United States, this is a global opportunity. By 2025, revenue from online pharmacy services is expected to reach $131 billion. At the same time, it is estimated that the output value of the prescription drug industry this year is 904 billion US dollars and will grow to nearly 1.3 trillion US dollars by 2025.
As more and more people want to complete their daily work at home, pharmacies are an important and necessary supplement to Amazon’s online store. PillPack has provided outstanding pharmacy services for patients with chronic diseases for more than six years. Now, they are expanding their pharmacy products to Amazon.com, which will help more customers save time, save money, simplify their lives and feel healthier.
In addition to the basic Amazon Pharmacy service, Amazon has also introduced special features for Prime members: users who subscribe to Amazon’s premium membership level can get unlimited free two-day delivery services in Amazon orders.
Prime members can save on drug costs without having to purchase insurance on Amazon Pharmacy and get the same discount at 50,000 other participating pharmacies across the country. Without insurance, Amazon Prime’s prescription savings offer can save members up to 805 generic drugs and 40% of brand-name drugs.
Elite members can use prescription savings at checkout, and all Amazon customers can purchase medicines (including branded and generic versions, as well as medicines in different shapes and dosages) and order online.
Amazon also allows customers to compare the price with their insurance copayments (without insurance) or savings available through the Prime prescription savings plan to choose the lowest option. Amazon is also operating its pharmacy services available 24/7 so that customers can answer questions about their medications.
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The launch of Amazon’s new internal pharmacy service has hit other discount prescription drug services (such as publicly traded companies such as GoodRx and RxSaver) and delivery services (such as ExactCare pharmacies).
Competition from Amazon may be one of the reasons GoodRx began to provide telemedicine services as a starting point for differentiation and promotion of the value chain. It is interesting to see if Amazon will also switch to providing virtual care for people other than employees. Last year, the company provided Amazon Care for its employees in Seattle as part of a pilot service that provided on-site and telemedicine services.
At the time, the company limited the pilot activities to employees only, but (as reported by TechCrunch), their approach was highly publicized, and it was clear that the amount of product development invested in initial applications, user experience, and branding might indicate that it has The entire US market is seen as a potential expansion opportunity.
In August, Amazon launched Halo, a fitness tracker. Personal health and fitness monitoring and advice services include a $64.99 wrist tracker and an application kit for monitoring health.
As TechCrunch pointed out, the service not only includes a standard health tracking gadget/app combination, but also provides a comprehensive view of various health indicators, including body fat content, which use only the smartphone’s camera and the Amazon Halo app Take measurements at home. Through the application’s deep neural network-based processing based on uploaded data, Amazon can separate the human body image from the surrounding environment, and has the function of analyzing so-called body fat “hot spots”, where it is easier to measure body fat percentage. Then, the application generates a 3D model of the user’s body. Halo users can then use the slider to adjust their body fat percentage up and down to see how increasing or decreasing body fat affects their physique.
In summary, powerful Amazon Prime users shop at Whole Foods, use Halo, and fill out prescriptions through Amazon Pharmacy, which may give the company the most comprehensive understanding of its health.
If Amazon launches its Amazon Care service to consumers, the only part of the healthcare sector that the company will not touch is catastrophic care. However, given Amazon’s ambitions, it is not impossible to imagine a world in which emergency care clinics or hospitals will also be covered with the Amazon logo.
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