Amazon Could Soon Move Into The Pharmaceutical Market
A potential move from the retailer could make prescriptions more affordable and convenient
The e-commerce giant is seriously considering selling drugs online. With on-demand remote consultations slowly becoming a reality, an online pharmacy with the resources of Amazon could close the loop for digital healthcare.
Relatively lower set-up costs and better transparency in pricing can equal greater savings for customers. The move can push Amazon toward even faster delivery and direct-into-home delivery, which the retailer is already developing. While Amazon has yet to reach a decision as to whether it will dabble in the $560 billion per year pharmaceutical market, the thought alone is already shaking up the industry with stocks of potential competitors Walgreens and CVS plummeting after the news broke.
In an internal email obtained by CNBC, Amazon says a decision could be made before Thanksgiving. A 30-page report from Goldman Sachs highlights one issue that could keep Amazon from making the jump: the age gap. Amazon’s demographics are predominantly young and healthy, and not older people with maintenance medications.
Lead Image: Two pill bottles via Shutterstock