The other shoe drops: Amazon Drug store is here


While today’s announcement of Amazon Pharmacy led to a flurry of headings, the news itself was a bit anticlimactic. This is what we anticipated when Amazon got PillPack back in 2018, in what appeared to be a play to achieve pharmacy licenses. In our post about healthcare’s brand-new world order, we discussed how Amazon is an abnormality amongst the other huge tech players entering into healthcare due to the special mix of their tech abilities in addition to their retail footprint and customer experience. The only missing out on piece of the puzzle was scientific abilities, which the PillPack acquisition offered.

Now that Amazon Drug Store is here, what will this indicate for the online pharmacy market? We expect Amazon Drug store’s preliminary clients will mostly be existing Amazon clients– especially Amazon Prime members– ready to transition far from brick-and-mortar retail pharmacies and eager to online look for all of their household requires in one place. CVS, Walgreen’s, and Rite Help have currently felt the impact, as evidenced by their stock rates tumbling today.

Online drug stores can keep importance by strengthening their distinction. Consumers of benefit care online pharmacies like Ro, Hims, and Lemonaid– that likewise provide a telemedicine component– will continue to utilize those services mostly for doctor gain access to and the “one-stop-shop” experience. Pharmacy-only start-ups like Capsule and Alto Pharmacy can stave off the newbie through customer care levels that Amazon Drug store doesn’t presently use. GoodRx (who just recently went public) will most likely still maintain an edge with the coupon-clippers, although Amazon Pharmacy is taking a cut of that too by enabling individuals to utilize GoodRx coupons and compare costs prior to purchase.

That stated, these competitive advantages may well be short lived. Amazon will likely incorporate telemedicine next– as it has with its staff member benefit Amazon Care– and other health care services to complete as an end-to-end digital health platform. It’s never ever more clear that a market has actually matured than when Amazon stakes their claim– and today, it was digital pharmacy’s turn.