In an attempt to diversify its revenue streams in the American marketplace, tech giant Amazon has launched an online pharmacy named ‘Amazon Pharmacy’ for delivering prescription medications in the country.
Amazon Pharmacy will allow its customers to compare the prices of their medications while they make the purchase through the website or the app. Buyers will also have the option to choose between co-pay and a non-insurance option at the checkout while members of Amazon’s loyalty program Prime will be offered extensive discounts on their purchases.
Amazon had earlier purchased US-based online pharmacy PillPack in 2018.
In the past several years, the tech giant has been working with regional authorities to acquire state licenses for shipping prescriptions which were one of the obstacles to its expansion into the drug supply chain.
The much crowded US pharma marketplace is already home for firms like Walgreens Boots Alliance Inc, CVS Health Corp, Walmart Inc, Rite Aid Corp, Kroger Co and others while overall transactions on these platforms have been lower than expected.
In its statement during the launch, TJ Parker, PillPack’s CEO and Vice President of Amazon Pharmacy stated that Amazon is striving o bring “customer obsession to an industry that can be inconvenient and confusing.”
Amazon is betting on the rise of eCommerce amid COVID-19 which has forced governments to direct people to stay home to stave off infections to improve its prospects in a market that has seen slower adoption.
The firm will offer up to 80% off on generic and up to 40% off on branded drugs to its Prime subscribers when they pay without insurance along with two-day delivery.
Amazon’s online pharmacy is not yet available in Illinois, Minnesota, Louisiana, Kentucky, and Hawaii. Earlier in August, the firm launched the service in India.