Amazon’s pharmacy venture is set to achieve a significant milestone, projected to reach $2 billion in sales this year, according to Evercore’s analysis. This marks a substantial rise in consumer interest, positioning Amazon as a formidable player in the pharmaceutical industry.
Amazon Pharmacy is expected to reach $2 billion in revenue this year, fueled by growing consumer interest. Evercore’s recent analysis highlights a notable uptick in user engagement with Amazon’s online pharmacy services, indicating a strong potential for growth in this sector.
According to a survey conducted by Evercore in June, 45% of Amazon customers expressed extreme or significant interest in purchasing prescriptions through Amazon, up from 34% the previous year and 14% in 2020. This demonstrates the largest increase in consumer intent to purchase pharmaceuticals online from Amazon in eight years.
The survey, which drew responses from 1,100 participants, found that 13% of customers have already bought pharmaceutical products from Amazon, a rise from 9% last year. These findings suggest Amazon’s growing influence in the prescription market, which is valued at approximately $435 billion in the United States.
Furthermore, half of Amazon’s Prime households are anticipated to purchase prescriptions from Amazon in the coming years, potentially adding $33 billion in sales and boosting operating income by $1.6 billion over three to five years. This aligns with Amazon’s strategic expansion into same-day pharmaceutical deliveries, aiming to cover nearly half of the U.S. population by the end of 2025.
Such expansion efforts underscore Amazon’s ambition to penetrate further into the U.S. prescription market, where it currently holds less than 1% market share. The company’s advancement is placing pressure on traditional retail pharmacies, as evidenced by Walgreens’ discussions to sell itself to a private equity firm.
With rising consumer engagement and strategic expansions, Amazon is poised to become a dominant force in the online pharmaceutical landscape. The company’s innovative approach and market strategies suggest a potential revolution in how prescriptions are purchased and delivered.
Source: Businessinsider
