On Tuesday Amazon.com Inc launched an online pharmacy for delivering prescription medications in the United States; this is launched due to the increasing competition with drug retailers such as Walgreens, CVS and Walmart.
Called Amazon Pharmacy, will be a new store that lets customers compare the price as they buy drugs on the company’s website or app. At checkout between their co-pay and a non-insurance option, the shoppers can toggle and there are heavy discounts also available for members of its loyalty club Prime.
The move builds on the web retailer’s 2018 acquisition of PillPack, which Amazon said will remain separate for customers needing pre-sorted doses of multiple drugs.
According to analyst notes from Jefferies Equity Research, Amazon has worked for over the past two years to secure more state licenses for shipping prescriptions across the country as this had been an obstacle for its expansion of its drug supply chain.
TJ Parker, PillPack’s CEO and vice president of Amazon Pharmacy, said in a statement the retailer aimed to bring “customer obsession to an industry that can be inconvenient and confusing.”
The company has been founded as an online bookseller that has disrupted industries including retail, computing and now potentially pharmaceuticals, drawing criticism of its size and power from labor groups and lawmakers along the way.
According to market research from J.D. Power, Amazon faces ingrained competition from Walgreens Boots Alliance Inc, CVS Health Corp, Walmart Inc, Rite Aid Corp, Kroger Co and others. Take-up of online ordering of drugs has been low.
Should Prime members prefer buying in person?
Amazon said, the discounts on non-insurance purchases apply at more than 50,000 brick-and-mortar pharmacies – including those run by rivals.
Inside Rx, a subsidiary of Cigna Corp’s Evernorth, oversees that benefit, Amazon said.
The pandemic may help bring drug orders online, while E-commerce has peaked this year as people were told to stay home to be safe from infections of COVID-19, and Prime members and more than 150 million globally that may be receptive to buying medication online now, that it’s from Amazon
About the subscribers will get up to 80% off generic and up to 40% off brand drugs when they pay without insurance, as well as two-day delivery, the company said.
However, a spokeswoman said, Amazon’s online pharmacy is not yet available in Illinois, Minnesota, Louisiana, Kentucky, and Hawaii.