Now sold on Amazon: Insulin, inhalers and other prescription drugs – all with two-day delivery for members of Prime Shopping Club of e-commerce Juggernaut.
Amazon’s new online pharmacy, which opens on Tuesday, allows users to buy and refill their medication on their phones or other devices and has it delivered to their doorstep in a few days, like a book or toilet paper . The move transformed Amazon into a new business, possibly shaking up the pharmacy industry as it has done everything from booksellers to toy shops and grocers.
In another incentive for Prime members, Amazon is teaming up with Amazon, Signra’s subsidiary, to offer discounts on brand-name drugs when they buy them without insurance at the pharmacy, and at nearly 50,000 participating drug stores.
“We see 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 shares / household spending among existing members, as Prime entry continues in the US. ” UBS analyst Eric Sheridan said in a research note.
Large chains such as CVS and Walgreens rely on their pharmacies to provide them with a steady flow of shoppers who frequently stop to take their medications. But Amazon is also making a debut in the midst of a coronovirus epidemic, increasing consumer demand for online delivery.
In pre-market trading, drugstore stocks lost 9% and CVS slipped 12%. Amazon shares rose 2.6%
Amazon said it would typically offer drugs starting on Tuesday, including creams and pills, as well as drugs that needed to be cold like insulin. Shoppers must set up a profile on Amazon’s website and doctors must send prescriptions to the company.
Amazon said that its customers will be able to research and compare drugs, including branded and generic versions, while checking price without insurance, price through their insurance co-payment or new prime prescription savings benefits.
Most insurance is accepted, Amazon said. But members who do not have insurance can also buy generic or brand-name drugs from Amazon for a discount, which the company said is up to 80% for generic drugs and up to 40% on brand-name drugs There will be a discount.
Vice President of Amazon Pharmacy, TJ Parker, said, “We work hard behind the scenes to handle the complications, so that anyone who needs a prescription can understand their options, get ours for the lowest available price.” Can order and get his medicine delivered quickly. ” a statement.
Amazon has monitored the health care industry for some time. Two years ago, it cost $ 750 million to buy the online pharmacy Pilpack, which organizes the drug in packets and the day they have to be taken. Amazon said Pilpack will continue, focusing on shipping medication to people with chronic conditions.