The pharmacy industry has evolved over the years and in the next 5 years it will go through a high shakeout and find its high profits under intense pressure. To achieve this, your pharmacy needs preparations and you need the knowledge of doing business in these modern – marketplace, customers and technologies. We have presented here, one of the first challenges you will face in the coming months. In case you are relieved that Amazon’s entry into the pharmacy market is a threat only to the western world, then you are wrong.
Amazon has evolved to be more than a brand, it has impacts on a few markets in the world but for the rest of the world, it has given a business concept for others to build their own business, so whether Amazon is in your country or not, it’s a global game changer. Now the news is “Amazon shakes up drugstore business with a deal to buy online pharmacy PillPack”
Considering our global readers and clients in mind we are giving here an elaborate summary of Pill pack, amazon’s buying deal, what is Amazon’s vision and how your pharmacy can still dominate your market.
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What is PillPack?
PillPack has a pharmacy in New Hampshire, USA and has pharmacy licenses in all 50 states of the United States but its main activity is mail order pharmacy for ongoing and chronic medications and does everything from dealing with insurance companies to handling refills. Pill pack analyses the combination of medications a person is taking to ensure they don’t counteract each other and then presorts, divides into daily packets and packages the medications for each person and delivers medications to customers at no extra cost on a 30-day schedule which is designed to make it easier for people who see piles of prescription pill bottles and struggling to keep track of when to take what.
What is Amazon?
Amazon which has advanced light years from its origins as an online bookseller has had a dramatic impact on many of the industries it’s touched. When Amazon disrupts an industry, they don’t play the game of the existing players but come up with new and innovative methods
When it moved into cloud services and streaming shows, it left rivals scrambling to catch up. Last year, it bought Whole Foods, shaking up the grocery space.
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AMAZON IN HEALTHCARE:
Amazon is a master at Squeezing out inefficiencies in the supply chain and this could prove particularly useful in the healthcare arena. In the late 1990’s Amazon first tried itself into a drugstore by purchasing part of a now-shuttered online pharmacy that emerged during the dot-com era, Drugstore.com, one of the first online sellers of pharmaceutical supplies and others but that investment didn’t turn out to be Amazon’s ticket into the pharmaceutical industry. Now the mail-order prescription-drug business is larger than it was in the late 1990s, and Amazon is a very different company.
Amazon started its Amazon business site a few years ago, trying to convince the medical community to buy commonly used products such as rubber gloves, syringes, gauze, surgical gowns, stethoscopes and dental bibs. While this business line isn’t as complex as pharmaceuticals, it still required Amazon to get licenses in various states of the USA before it could sell certain medical supplies.
This set off a flurry of speculation and was widely expected to move into the pharmacy business. Though Amazon was long expected to partner with someone to change how drugs are sold, no one thought that Amazon will start a drugstore or drug distributor because the pharmacy business is much more complex than just delivering certain pills or certain packages. There’s plenty of room for improvement but If Amazon’s move to disrupt healthcare is going to make the public any healthier, then it’s not just another deal in the healthcare business.
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WHAT ARE THE CHANGES AMAZON WILL MAKE?
Amazon’s surprise acquisition of mail-order pharmacy PillPack sent a clear signal that Amazon’s pharmacy ambitions aren’t quite so gentle and kind but are serious about it after all.
Prescription drugs were one of the only things that pharmacies offered that Amazon couldn’t, but No longer. Acquiring PillPack gives Amazon an immediate nationwide presence in the prescription-drug market and puts another industry on notice as pharmacies are highly reliant on prescription drug sales as both a source of revenue and a way to draw people into stores to buy makeup or milk.
“PillPack’s visionary team has a combination of deep pharmacy experience and a focus on technology. PillPack is meaningfully improving its customers’ lives, and we want to help them continue making it easy for people to save time, simplify their lives, and feel healthier. We’re excited to see what we can do together on behalf of customers over time.”
Jeff Wilke, Amazon CEO Worldwide Consumer.
It’s not clear yet just what Amazon plans for PillPack. Will it eventually merge it into a broader healthcare platform on Amazon or keep it independent as it has done with other subsidiaries like shoe retailer Zappos and video site Twitch? It’s also possible to imagine that Amazon might use its Whole Foods grocery stores for a physical drugstore operation, too.
Amazon could insert itself into the now-overly-mediated supply chain and negotiate rates directly with healthcare providers and drug manufacturers and ultimately use its know-how to make a dent in prices.
Amazon could use technology for paying bills and to ease consumers’ ability to make appointments or consult with doctors and other healthcare institutions.
Amazon could store information in the cloud and make it easier for patients and providers to access their medical records, and prescription history and in that way, everything is all together in one place.
Amazon could also collect much-needed data on dangerous drug interactions — hazards that wouldn’t necessarily have been revealed in clinical trials. The more patients and their doctors know about side effects and interactions, the more likely patients will be to get the right prescription for their needs and the lower the risk of noncompliance.
DID YOU KNOW.?
An Amazon online pharmacy could transfer a lot of the power and responsibility of improving health care to patients themselves, so what would consumers lose in the deal? Unfortunately, something enormously valuable, in our opinion: the voice of the independent pharmacist. The old-fashioned neighbourhood pharmacist remains one of the most accessible front-line health care providers in many parts of the world.
HOW CAN YOUR PHARMACY SUSTAIN?
There is no clear answer now for the pharmacies to meet the challenges of Amazon\’s Pill pack pharmacy services as we are not much informed of Amazon\’s plans to target the pharmacy market, in any scenario, disrupting the pharmacy market will take some time. The PillPack deal is a win for Amazon investors as PillPack can deliver significant sales growth and Amazon\’s scale can accelerate its path to profitability but Amazon\’s pharmacy business is not just limited to online, they have retail stores as well which can be transformed into a physical pharmacy or delivery point. From what we have understood from the operations of Amazon we have some suggestions to prepare yourself for defending your title as your community\’s front-line for health care.
For your pharmacy to succeed,
you need to find ways really differentiating yourself – what can you do, which Amazon can’t and by creating great experiences, for instance, you should also take advantage of the digital opportunity, sort of Blend bricks with clicks.
Now, there is a lot of medicines customers can buy from your pharmacy can also be bought from Amazon so the customer needs to be given a particular reason to go to your pharmacy – good customer service, interaction, consultation, things like that, somethings worth costumers getting to your door.
There is a shift in the percentage of online vs offline revenues, It is not about Online taking over offline pharmacies, it is not about your pharmacy existing as a channel for health care needs, it is about the consumers wanting to purchase or use your services whenever and however, they desire to do so and so it\’s your responsibility to create an ecosystem that will serve the healthcare needs of your community.
There is a shift in the percentage of online vs offline revenues, It is not about Online taking over offline pharmacies, it is not about your pharmacy existing as a channel for health care needs, it is about the consumers wanting to purchase or use your services whenever and however, they desire to do so and so it’s your responsibility to create an ecosystem that will serve the healthcare needs of your community.
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