AUS
NZ
UK
CA
USA
IND
.jpg)
Summary
- Amazon launched a new division called Amazon Pharmacy last week, a service that provides a fully online facility to purchase prescription meds.
- In three easy steps, Amazon Pharmacy guarantees the safe delivery of pharmaceutical products to each member’s doorstep. Amazon Prime members are entitled additional subsidies.
- As Amazon Pharmacy registered for a trademark in Australia earlier this year, some experts are questioning that decision as Australia has strict laws about distributing medications.
Retail titan Amazon (NASDAQ:AMZN) launched a new project earlier this month that could provide the company with a multi-billion dollars opportunity – Amazon Pharmacy. An expert suggested that the opportunity could be even more significant, worth a trillion dollars.
Amazon Pharmacy allows US residents to order prescription medications from the comfort of their home, without leaving the house to go to the pharmacist. The company introduced a new, secure pharmacy profile for its users, where they can store confidential information about their health insurance, handle prescriptions, and choose the most convenient payment preference.
RELATED: Amazon forays into the pharmacy industry with Prime
The novel opportunity is, for now, exclusive to Amazon members in the US. Yet, there might be a possibility for Amazon Pharmacy to launch in Australia, as the retail giant filed for a trademark to Australia IP earlier in January.
For now, Amazon Pharmacy has still not launched Down Under, and there seem to be many challenges for the online pharmacy due to strict industry regulations in Australia.
How does it work?
The first step in creating an Amazon Pharmacy profile is signing up for the service. In the process of designing a personal account, Amazon will ask about the necessary personal information (e.g. name, DOB, and other related information), medicines that are used regularly, and any known allergies or pre-existing conditions that one might have.
Once users register with Amazon Pharmacy, they need to get a prescription for the desired drug. They can accomplish the following by choosing one of the two ways for obtaining the prescription:
- Contacting a personal prescriber – Users can directly ask their doctors or other prescribers for the prescription, which will then be sent to Amazon Pharmacy.
- Request Amazon Pharmacy to get the prescription – If consumers choose this option, they might need to wait for two to four days to get the prescription.
The final stage before receiving medications is a notification from Amazon Pharmacy that the prescription is received. When Amazon verifies the prescription, users can place their order, choose the most suitable payment option, and then wait for the meds to arrive in their mailbox.
Amazon Pharmacy offers unique benefits to Amazon Prime members, providing them with significant discounts on medications (even if the member does not hold private insurance) as well as free two-day delivery.
It is essential to understand that the system works with almost every private insurance provider, so Amazon Pharmacy offers an excellent guarantee for cheaper medicines.
MUST WATCH: How Is Amazon Pharmacy planning to capture a slice of Healthcare Segment?
Could this model work in Australia?
Some experts believe that Amazon Pharmacy would not be the most appropriate option for Australia as the country has stricter regulations for the pharma industry compared to those in the US.
In comparison to the US, Australia allows registered pharmacists only, to own a pharmacy and deal with prescriptions as a part of their job. Giant companies are not likely to satisfy the strict criteria imposed by the government, so it might be hard for Amazon Pharmacy to find a way to the Australian market.
What challenges would Amazon need to confront?
As mentioned above, Australia does not allow just anyone to deal with prescriptions and assign them to patients. Amazon Pharmacy would have problems because of that feature due to its infrastructural nature, meaning it is a big company with no clear pharmaceutical guidelines.
Another significant challenge for Amazon would be the Pharmaceutical Benefits Scheme (PBS), which already allows affordable pharmaceuticals for select cardholders. By regulating the government subsidy and the market price of the medicine, PBS sets a drug price depending on the individual situation. The US does not have such a system so offering cheap pills through Amazon Pharmacy makes sense, but it would not work the same in Australia. Medicines in Australia have almost the same price online and in-store, unlike the US, where the costs might be significantly different.
Last but not least, Australians put a lot of their trust into pharmacists, especially local ones that have been providing them with medications over some time. Amazon Pharmacy is an impersonal system that excludes a human touch from the whole process, so Australians may not fully trust it.
