Amazon has now launched an online pharmacy to serve as competition for other big-named retail pharmacies, according to a news release.
Amazon's online pharmacy will compete with Walgreens, Rite Aid, CVS Health, Kroger and Walmart.
Amazon launched the online pharmacy on Nov. 17, hoping to gain a foothold in the U.S. pharmacy business, it said, hoping to also bump up the sluggish pharmacy market. The online pharmacy market is likely to pick up with more people staying home because of the COVID-19 pandemic.
Those with Amazon Prime memberships could also receive major discounts by using the service — up to 80% for generics and 40% for brand medications if they pay for those medications not using their insurance.
Members who prefer to shop in person can also use Amazon's discounts, even at their competitors.
Amazon Pharmacy will also allow its customers to compare with other pharmacies and see the prices for their medications with their co-pay, as well as the non-insured price.
The online store is already available nationwide. There are five states that it is not yet available in: Hawaii, Kentucky, Minnesota, Louisiana and Illinois.
“Amazon’s launch of an online pharmacy is a meaningful threat to brick and mortar pharmacies,” Northwestern University’s Kellogg School of Management professor Craig Garthwaite told Reuters. “These retail pharmacies must now offer more than just easy access to a prescription.”
CVS Health said it wasn't surprised that Amazon had decided to launch a pharmacy.
“New entrants to the highly competitive pharmacy market come as no surprise to us,” CVS Health said in a statement, Reuters reported. “While pharmacy is a core component of our business, CVS Health is so much more than your corner drug store.”
Walgreens responded to the announcement saying it already provided many solutions for customers and even offered same-day and next-day delivery options.
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