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Amazon Launches Amazon Pharmacy
While Amazon has managed to crack, and often dominate, most retail markets, the lucrative one for prescription pharmaceuticals has remained elusive. Investors have been expecting the Seattle-based firm to make a move into the pharmacy space since at least 2018, when Amazon acquired online pharmacy PillPack for more than $750 million.
Well, It’s now a reality! Amazon Pharmacy, a new store on Amazon, allows customers to complete an entire pharmacy transaction on their desktop or mobile device through the Amazon App.
On Tuesday November 17th 2o2o, Amazon announced the launch of its own digital pharmacy the launch of its own digital pharmacy alongside prescription discounts of up to 80% for its Prime members.
Why Amazon Pharmacy?
While Amazon Pharmacy looks to be a U.S.-only launch for now, it’s a global opportunity. Online pharmacy services are projected to hit revenues of $131 billion by 2025 worldwide.
The launch of the new Pharmacy service within Amazon is a blow to other discount prescription services like the publicly traded GoodRx and companies like RxSaver and delivery services like ExactCare Pharmacy.
The launch of Amazon Pharmacy is also a great opportunity for Amazon to expand.Indeed, Prescription drugs have been estimated to be a $904 billion industry this year, growing to nearly $1.3 trillion by 2025.
Amazon Pharmacy: What benefits for Prime Members?
In addition to the basic Amazon Pharmacy service, Amazon is rolling out special features for Prime members: Those subscribing to Amazon’s premium membership tier can receive unlimited, free two-day delivery on Amazon orders, the company said in a statement.
The Amazon Prime prescription savings benefit gives Prime members access to low prices on many brand name and generic prescription medications when paying without insurance.