Today, we look at Amazon’s move into medical devices.
Last month, we asked: Would You Buy Your Prescriptions at Amazon? It seems that the online behemoth knows no limits. And it realizes the enormous potential of health-related products.
According to Business Insider:
“Amazon is now offering an exclusive brand of consumer-focused medical devices to help consumers manage diabetes and hypertension, according to CNBC. The brand, dubbed Choice, was developed by health consultancy firm Arcadia Group. Choice will initially include blood pressure cuffs and glucose monitors with supporting mobile apps that offer measurement tracking and reminders. Exclusive consumer-facing medical supplies will complement Amazon’s existing offerings and should be a boon for its healthcare play.”
“But Amazon will need to focus on building consumer trust if plans to use its new health products for a broader healthcare play. On average, more than a third of consumers are ‘not at all comfortable sharing information as simple as personal fitness details and prescription records with Amazon in exchange for its services, per a May 2018 Alpha survey.”
Look at how far Amazon has to go in getting shoppers’personal information.
Until now drugstore chains, independent pharmacies, mail-order delivery from prescription suppliers, and in-store pharmacies in retail stores have been the major ways that we buy prescription drugs.
Now, Amazon intends to change this — as it has so many other business segments. So, would you buy your prescriptions at Amazon?
According to Business Insider Intelligence:
“More than half of U.S. consumers say they would ditch their current pharmacy for Amazon. And Amazon’s $1 billion deal to acquire online pharmacy startup PillPack is bad news for CVS, Rite Aid, Walgreens, and other pharmacies. The majority of respondents (57%) in an exclusive Business Insider Intelligence survey said they would use a pharmacy service offered by Amazon over their current pharmacy.”
“Amazon’s strengths are price, product selection, and delivery speed — all of which could be applied to retail pharmaceuticals. While it’s unclear how Amazon aims to use PillPack, we think consumers anticipate lower prices and convenience.”
“Amazon still has a number of hurdles to overcome before offering a full-fledged pharmacy service. For instance, Amazon could have trouble forging relationships with pharmacy benefits managers who could see Amazon’s entry into the pharmaceutical market as a direct threat.”