Amazon expects to generate revenue upwards of $130 billion by 2025 from this new offering.
Through the pandemic, pharmacies have been an e-commerce resistant segment of the real estate market. But that could be changing with a new announcement from Amazon.
The e-commerce giant announced the launch of a new store, called Amazon Pharmacy, which will allow customers to complete an entire pharmacy transaction on their desktop or mobile device through the Amazon App. The platform will enable customers to add their insurance information, manage prescriptions and choose payment options before checking out. Prime members will receive unlimited, free two-day delivery on orders from Amazon Pharmacy included with their membership.
Prime members will also be able to access savings on medications at Amazon Pharmacy when paying without insurance and at over 50,000 other participating pharmacies nationwide. Separately, Amazon offers PillPack, which provides pre-sorted dose packaging.
“Having bought PillPack in 2018 for roughly $750 million, it is no surprise today that Amazon announced its intent to enter into the prescription drug market,” Jonathan W. Hipp, principal, US Capital Markets and head of U.S. Net Lease Group at Avison Young told GlobeSt.com. “Based on Amazon’s success in growing the online grocery business with the acquisition of Whole Foods and launching a delivery model being copied by all, Amazon expects to generate revenue upwards of $130 billion by 2025.”
In the short term, Hipp doesn’t see a significant impact on the pharmacy sector in net lease.