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Need A Prescription Refill? Amazon Reportedly Mulls Selling Drugs Online

Updated on November 5, 2017

Beware Illnesses, Amazon is Ready.

Amazon Pharmacy is Coming.

Amazon is in its final stage in deciding whether it should get into the multibillion dollar prescription pill market. If the insider views are taken to be true, the decision will come as soon as before this thanksgiving.

Amazon usually analyses a new move for years before giving it a green signal, and according to a CNBC report, the largest online retailer in terms of annual revenues in the US is already prepared if the decision comes out to be a ‘yes’.

Amazon already has a medical supply business, and to tap the $ 560 billion a year prescription drug market, it will just need to involve and expand its medical supply model to reach the medicine retailers and individual buyers.

The New Market

However, analysts believe that, selling drugs online is different from selling other items because there is always a risk factor involved in selling drugs. Still, when it is none other than Amazon, everything is possible.

As Linda Pissott Reig, who co-chairs the FDA section of the Pittsburgh-based law firm Buchanan, Ingersoll & Rooney PC puts it, “Amazon has shown that they have mastery of the technology and innovative approaches to really transform how the marketplace delivers product.”

The new business could also help the company to have complimentary sales. For example, people buying medicines for depression could also be looking for self-help books, and Amazon can easily rely on its repository of big data to find such dual-needy customers. As Reig added, “Amazon, with a giant marketplace, has a lot of ability to collect information.”

Making Retail and Shipping Arrangements

The speculation of Amazon’s pharmacy business interests went rife also because the company bought Whole Foods for a whopping $14 billion in June only to shut it down after a little longer than two months. Many believe that the Whole Food facilities might just become the pharmacy locations for the company’s drug distribution strategy.

Another Bloomberg report has stated that Amazon is also preparing to rely less on UPS and FedEx, and devise its own shipping network. If fortified, this could be a boon for the pharmaceutical business as most individuals requiring medicines would need fast and accurate deliveries for a satisfactory experience of buying drugs online.

Keep Fingers Crossed, Though

Amazon did not say anything about the prescription drug sales, but analysts noted that it is a bit tougher to enter a regulated market. As CVS Health Corp. Chief Executive Larry Merlo reiterated in August to Wall Street Journal that the industry was “highly regulated, so the barriers to entry are high.”

Let’s wait till Thanksgiving to see how Amazon deals with the new high.


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