Andrew Teigman

Nov 19, 2020

2 min read

Amazon: The Next Big Thing in Pharma?

You read my title correctly, Amazon is attempting to makes it next big move: the pharmacy space. What will competitors like CVS, Walgreens, and Duane Reade do to combat this tycoon that never stops? Amazon is introducing their own home delivery on RX medications to all consumers. Amazon Prime Consumers will have the ability of 1–2 Free Shipping on Prescriptions. The challenges that Amazon will have to hurdle over is the long time loyalty that many consumers have to pharma giants like CVS and Walgreens. Additionally, insurance companies often subsidize or pay for certain drugs, how will Amazon forge these relationships with the insurance companies? A large market share of medication is bought for older generation of people that are not so familiar with Amazon’s technology and E-commerce platform. Grandpa Jack and Grandma Etel are more likely to go to the pharmacist that they know and love in their CVS to fill their laundry lists of prescriptions than buying the RX using Amazon. All of the sentiments that I stated earlier are true, however, there is one small problem especially using Godin’s framework. As Godin articulates “ After the refrigerator was popularized, there wasn't a good reason to continue hiring the ice delivery man….. because better is what our market is waiting for” . ( This is Marketing, 62). E-commerce is the future of our lives and Amazon is our engine that takes us there. There is no reason why we should be robotic in this area of our lives. Amazon has all the money and infrastructure to make all the right delivery, savings, and memberships options to make this venture extremely profitable. My only question is what is Amazon gonna do with all of those empty CVS and Walgreens stores after Amazon Pharmacy is the next big thing.