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.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.See also:
- From health clinics at Whole Foods to Alexa for home care, here's how Amazon could dominate healthcare
- Amazon is trying to tap into the $300 billion market for online pharmacies - here's how it could change the healthcare industry