Amazon India has added an online pharmacy to its offerings in Bengaluru, one of the nation’s largest cities with a population of nearly 12 million.
Reuters reported Amazon Pharmacy will offer prescription, over-the-counter (OTC) drugs and Ayurveda medications, a holistic approach to healthcare considered one of India’s traditional healthcare treatments.
“As a part of our commitment to fulfill the needs of customers, we are launching Amazon Pharmacy in Bengaluru.” an Amazon spokesperson has said in published reports.
“This is particularly relevant in present times as it will help customers meet their essential needs while staying safe at home.”
Reuters reports this is the latest initiative by the eCommerce giant to broaden its reach in a key growth market.
India’s pharmaceutical industry is expected to reach $55 billion by the end of 2020, up from $28 billion in 2016, according to a report by the Indian Brand Equity Foundation, a nonprofit trust established by the Indian government to promote the Made in India label.
Amazon joins a competitive prescription and OTC drug market in India where its rivals include Flipkart, Walmart’s eCommerce marketplace that offers 80 million products in more than 80 million categories and calls itself the largest online shopping site in India. In addition, Medlife, Netmeds, Temasek-backed PharmEasy and Sequoia Capital-backed 1mg.com compete for sales in the pill market
In June, PYMNTS reported India’s West Bengal State Beverages Corp., the state agency that manages liquor licenses, granted approval for Amazon to sell alcohol online.
India has not finalized regulations for ePharmacies, but the growth of online sellers threatens traditional drug stores.
“Amazon’s customer base is very high, so we are bound to lose business,” Yash Aggarwal, legal head of South Chemists and Distributors Association, a New Delhi-based trade organization, told Reuters. “There are 5 million families dependent on this (offline) trade.”
In January, CNBC reported Amazon had filed for a trademark for Amazon Pharmacy in Australia, Canada and the United Kingdom.
The trademarks illustrate how Amazon could potentially move its online pharmacy business overseas, despite the numerous challenges it faces in the U.S.
Amazon started moving into the health space in 2017. Last summer, Amazon announced that it was buying PillPack for $753 million, snapping up a company that delivers most of the medications consumers can get from their drugstore packaged in convenient white packets so people will remember to take them, along with automatic refills and 24/7 customer support.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More