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Friday, February 26, 2021

Amazon Launches Online Pharmacy

Amazon on Tuesday has officially launched an online pharmacy that would allow customers in the U.S. to order prescription medications for home delivery.

Amazon on Tuesday has officially launched an online pharmacy that would allow customers in the U.S. to order prescription medications for home delivery.

The e-commerce giant’s bold move comes after it bought mail-order pharmacy PillPack for $1 billion in 2018.

Amazon’s online delivery service aims to disrupt the pharmacy space, as well as challenge drug retailers such as Walgreens, CVS and Walmart.

Amazon Pharmacy, the name of the new store, could offer up to 80 percent discounts on generic drugs for Prime subscribers paying without insurance, either on its platform or at more than 50,000 brick-and-mortar pharmacies – including the ones run by rivals. The company could also offer discounts of up to 40 percent on branded drugs.

The announcement of Amazon’s new store caused the shares of some pharmaceutical competitors to drop during the pre-market trading on Tuesday.

The launching of Amazon Pharmacy could help further boost the U.S. retailing giant’s online sales as people opt to stay indoors amid the pandemic.

“We understand the importance of access to affordable medication, and we believe Prime members will find tremendous value with the new Amazon Prime prescription savings benefit,” said Amazon Prime Vice President Jamil Ghani.

Despite the opening of the online pharmacy, PillPacks’s services would remain functioning separately from Amazon Pharmacy.

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