Nearly three-quarters of all consumers are willing to purchase prescription drugs through Amazon, as the e-commerce giant seeks to tap into a $300 billion market
- Amazon is moving aggressively into the healthcare space, as shown with its recent acquisition of digital pharmacy startup PillPack.
- But are consumers willing to purchase drugs through Amazon? A recent survey by Deutsche Bank indicates that nearly three quarters would be.
- Consumers are attracted to the possibility that Amazon can offer these drugs at a lower price than usual.
Amazon's acquisition of digital pharmacy startup PillPack could be first of many new services the e-commerce giant might be adding on in order to increase its presence in the healthcare space and shake things up.The online pharmacy space is estimated to be worth $300 billion and PillPack may allow Amazon to capture a good portion of that market. Advertisement
But before it can execute its master plan, there's one big question it has to answer first: will consumers bite?
Adding new services may be a waste if Amazon can't convince its customers to use it. But a new research report by Deutsche Bank indicates that consumers are largely onboard with Amazon's new plan.The report found that 71% of consumers would be willing to purchase prescription drugs through Amazon, regardless of the number of medications they use per month. That number breaks down to 85% of Prime members with insurance and 55% of non-Prime customers with insurance.
The willingness to purchase drugs through Amazon seems to decline with age. Still, 52% of respondents over the age of 65 said they would purchase drugs from the company.Deutsche Bank found that the major advantage drawing customers to Amazon is the potential for significantly lower-priced prescription drugs.In the brick and mortar pharmacy space, if Amazon additionally introduces pharmacies in Whole Foods' stores, Deutsche Bank said that it could allow it to potentially address a $215 billion opportunity, putting it on tier with CVS and Walgreens. Advertisement
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