Amazon Launches Its Own Pharmacy, Prescription Delivery Service

November 18, 2020 - Amazon is moving into the pharmacy business by launching its own online pharmacy and prescription delivery services, the company recently announced.

The first offering, Amazon Pharmacy, allows customers to complete a pharmacy transaction on their desktop or smartphone through the Amazon app.

Customers are able to create a pharmacy profile where they can add their insurance information, then compare prices, manage prescriptions, and choose payment options before checking out. 

Additionally, patients who are Amazon Prime members can receive unlimited, free two-day delivery on orders from Amazon Pharmacy. 

“We designed Amazon Pharmacy to put customers first – bringing Amazon’s customer obsession to an industry that can be inconvenient and confusing,” TJ Parker, vice president of the new Amazon Pharmacy, said in the announcement.

“We work hard behind the scenes to handle complications seamlessly so anyone who needs a prescription can understand their options, place their order for the lowest available price, and have their medication delivered quickly,” Parker continued. 

The second Amazon offering announced yesterday allows Amazon prime members to access savings on medications when paying without insurance, as well as at over 50,000 other participating pharmacies nationwide.

Members could save up to 80 percent on generics and 40 percent on brand-name medications when paying without insurance, according to Amazon.

The company also plans to leverage its existing browsing experience infrastructure that Amazon customers are already familiar with to help them discover different branded and generic drugs, as well as different dosages.

If a customer has questions about navigating the system, they can turn to the self-service help options or chat with a pharmacist at any time, Amazon added.

Amazon did note that PillPack, part of Amazon Pharmacy, remains an individual service for customers managing multiple daily medications for chronic conditions.

“As more and more people look to complete everyday errands from home, pharmacy is an important and needed addition to the Amazon online store,” said Doug Herrington, senior vice president of North American Consumer at Amazon. 

“PillPack has provided exceptional pharmacy service for individuals with chronic health conditions for over six years. Now, we’re expanding our pharmacy offering to Amazon.com, which will help more customers save time, save money, simplify their lives, and feel healthier,” he stated. 

Mail service delivery options for prescription drugs allows customers to order their needed medications from the comfort of their own home and with the touch of a button.

Back in 2018, CVS Pharmacy was the first national retailer to announce that prescription delivery was available from CVS Pharmacy locations nationwide.

Customers could have their medications delivered to them the very next day through the CVS Pharmacy app or by calling their local store.

Additionally, a selection of health and household items carried by CVS, including cold and flu remedies, allergy medications, pain relief, first aid, digestive health, and vitamins were also available to add to delivery orders. 

But some experts believe that these prescription delivery services may pose a threat to traditional pharmacies. 

Craig Garthwaite, a professor at Northwestern University’s Kellogg School of Management, voiced that the launch of this online pharmacy is a “meaningful threat to brick and mortar pharmacies.”

“These retail pharmacies must now offer more than just easy access to a prescription. This is a key driver of the pivot for CVS to ‘CVS Health.’ Providing healthcare services in-store is a much better use of the retail footprint and shifts business away from our reliance on in-person pharmacy,” Garthwaite said in an emailed statement. 

“Amazon is also claiming patients can save up to 40% off branded drugs without insurance. This is likely the first step towards starting a pharmacy benefit manager business. It also means uninsured customers get better access to rebates from drug manufacturers,” he concluded.