Now at Amazon.com: insulin and inhalers.
The online colossus opened an online pharmacy Tuesday that allows customers to order medication or prescription refills, and have them delivered to their front door in a couple of days.
“We designed Amazon Pharmacy to put customers first – bringing Amazon’s customer obsession to an industry that can be inconvenient and confusing,” TJ Parker, Vice President, Amazon Pharmacy, said in a statement. “We work hard behind the scenes to handle complications seamlessly so anyone who needs a prescription can understand their options, place their order for the lowest available price, and have their medication delivered quickly.”
The potential impact of Amazon's arrival in the pharmaceutical space rippled through that sector immediately. Before the opening bell, shares of CVS Health Corp. fell almost 9%. Walgreens and Rite Aid both tumbled more than 10%.
The big chains rely on their pharmacies for a steady flow of shoppers who may also grab a snack, or shampoo or groceries on the way out. All have upped online services, but Amazon.com has mastered it, and its online store is infinitely larger.
“As more and more people look to complete everyday errands from home, pharmacy is an important and needed addition to the Amazon online store,” commented Doug Herrington, Senior Vice President of North American Consumer at Amazon. “PillPack has provided exceptional pharmacy service for individuals with chronic health conditions for over six years. Now, we’re expanding our pharmacy offering to Amazon.com, which will help more customers save time, save money, simplify their lives, and feel healthier.”
Amazon will begin offering commonly prescribed medications Tuesday in the U.S., including creams, pills, as well as medications that need to stay refrigerated, like insulin. Shoppers have to set up a profile on Amazon's website and have their doctors send prescriptions there.
Most insurance is accepted, Amazon said. But Prime members who don't have insurance can also buy generic or brand name drugs from Amazon for a discount. They can also get discounts at 50,000 physical pharmacies around the country, inside Costco, CVS, Walgreens, Walmart and other stores.
“We understand the importance of access to affordable medication, and we believe Prime members will find tremendous value with the new Amazon Prime prescription savings benefit,” said Jamil Ghani, Vice President, Amazon Prime. “Our goal is for Prime to make members’ lives easier and more convenient every day, and we’re excited to extend the incredible savings, seamless shopping experience, and fast, free delivery members know and love with Prime to Amazon Pharmacy.”
Notably, Amazon will not deliver Schedule II controlled medications, which includes most opioids.
Amazon has eyed the health care industry for some time. Two years ago, it spent $750 million to buy online pharmacy PillPack, which organizes medication in packets by what time and day they need to be taken. Amazon said that PillPack will continue, focusing on shipping medication to people with chronic conditions.
In response, CVS and Walgreens, which built thousands of drugstores nationwide to get closer to customers, have been been trying to adjust to the rise of online shopping by offering same-day delivery. Earlier this year, CVS started testing prescription deliveries with self-driving vehicles, and Walgreens experimented with drones that can deliver minutes after being ordered.
