Amazon Pharmacy is going to be the first big test of public trust in Prime and will expose the company to more scrutiny

Jeff Bezos wearing a suit and tie: Amazon CEO Jeff Bezos. c

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Amazon CEO Jeff Bezos. c

  • This week Amazon launched its new Amazon Pharmacy service, selling prescription and generic medications.
  • Prime members will get a bunch of perks, including huge discounts of up to 80%.
  • By selling healthcare, Amazon Prime is getting into a market where consumers are keenly aware of how sensitive their data is, which means it will have to walk a fine line to maintain public trust.
  • Visit Business Insider’s homepage for more stories.

Amazon launched its new service Amazon Pharmacy on Tuesday, which means the company will be selling both prescription and generic medication to its US customers via its website.


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The move was not unexpected; industry watchers have been expecting Amazon to move into delivering medications since 2018, when it acquired drug-delivery startup PillPack. The company has also been pushing into healthcare more generally since then.

Amazon Pharmacy is

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What Amazon’s push into pharmacy means for pharmacies, health plans, and startups

Companies like Hims or Ro that prescribe and ship medications to your door could see a slight benefit as getting drugs online goes mainstream, but ultimately could have to compete directly with Amazon.



Analysts and experts credit Amazon with ushering in the widespread adoption of e-commerce shopping and selling habits with its Prime two-day shipping. Amazon Pharmacy could create the same seismic shifts in mail-order prescriptions that initially benefit the existing companies in the space, but ultimately leave those companies competing directly with the behemoth.

Direct-to-consumer pharmacies, for example, could benefit as new consumers learn to order prescriptions online for the first time through Amazon. In a way, it proves their business model is a good one, and that widespread adoption is possible, making the private companies more enticing to potential investors. However, customers could have a more established purchasing relationship with Amazon, given the ubiquity of Prime memberships

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After Books And Streaming, Amazon Launches Online Pharmacy

After books, clothes, appliances, fresh food and even streaming content, Amazon is branching into one of the last realms it has yet to conquer: prescription drugs.

The e-commerce giant said Tuesday it was launching an online pharmacy for US consumers, who will be able to order prescription medications directly from its website or mobile app.

The move comes two years after Amazon acquired PillPack, an internet pharmacy offering pre-sorted dose packaging and home delivery.

“As more and more people look to complete everyday errands from home, pharmacy is an important and needed addition to the Amazon online store,” said Amazon senior vice president Doug Herrington.

TJ Parker, vice president of the new unit, said it was designed “to put customers first — bringing Amazon’s customer obsession to an industry that can be inconvenient and confusing.”

Amazon has long been rumored to be interested in the pharmacy business, and the entry

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New Amazon online pharmacy service will compete against CVS and Rite Aid

Though long expected, the announcement rattled the drugstore industry, sinking the shares of all of Amazon’s news rivals. Shares in both CVS and Walgreens Boots Alliance slid about 9 percent in midday trading. Rite Aid’s stock fell more than 15 percent. (Amazon chief executive Jeff Bezos owns The Washington Post.)

Prescription drug sales will approach $360 billion this year, according to a forecast from the Centers for Medicare & Medicaid Services, an agency within the Department of Health and Human Services. With the ongoing coronavirus pandemic, Amazon Pharmacy hopes to take advantage of the burgeoning interest in shopping from home.

“As more and more people look to complete everyday errands from home, pharmacy is an important and needed addition to the Amazon online store,” senior vice president Doug Herrington said in a statement announcing the move.

Amazon Pharmacy is available, for now, to customers in every state except Hawaii, Illinois,

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Amazon’s Pharmacy Rollout Sinks Drugstore Stocks  (AMZN) – Get Report officially opened the virtual doors of Amazon Pharmacy, a new full-service digital pharmacy that lets Amazon Prime members order and fill their prescriptions online and have them delivered directly to their front doors.

The offering puts Amazon in direct competition with pharmacy giants CVS Health  (CVS) – Get Report and Walgreens Boots Alliance  (WBA) – Get Report, and helps it compete with Walmart  (WMT) – Get Report, Target  (TGT) – Get Report and other big-box stores that already sell prescription drugs.

Walgreens Boots, CVS Health and Rite Aid  (RAD) – Get Report all traded lower in premarket trading on Tuesday after Amazon’s announcement. Shares of Walgreens Boots were down 8.7% at $40.26, while shares of CVS were down 7.95% at $67.63. Rite Aid stock was down 12.79% at $11.28.

The new

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Drugstore Stocks View Amazon Pharmacy Launch as Poison Pill

For drugstore stocks,’s  (AMZN) – Get Report announcement on Tuesday that it is launching Amazon Pharmacy is already providing to be a tough pill to swallow.

Shares of pharmacy giants CVS Health (CVS) – Get Report, Walgreens Boots Alliance (WBA) – Get Report and Rite Aid (RAD) – Get Report all traded lower on Tuesday after Amazon announced the official opening of Amazon Pharmacy, its new full-service digital pharmacy for Prime members.

The offering puts Amazon in direct competition with the the pharmacy chains, and also puts it head to head with Walmart (WMT) – Get Report, Target (TGT) – Get Report and other big-box stores that already sell prescription drugs.

Amazon Pharmacy comes more than two years after Seattle-based Amazon’s $753 million acquisition of PillPack, an online pharmacy known for organizing pills into packets that also

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Walgreens drops 11% to lead drug store stocks lower after Amazon launches pharmacy business

A CVS Pharmacy store is seen in the Manhattan borough of New York City, New York.

Shannon Stapleton | Reuters

Pharmacy stocks fell sharply on Tuesday after Amazon launched its new Pharmacy offering, which includes online ordering and delivery for prescription drugs.

Dow Jones Industrial average member Walgreens Boots Alliance dropped more than 11% in premarket trading. CVS Health shares lost over 8%. Shares of Rite Aid fell 12.8%, while GoodRx stock also declined.

Amazon Pharmacy is available in 45 states and accepts most forms of insurance. Amazon Prime members can also receive discounts on generic and name-brand drugs when paying without insurance, the company said.

Amazon has been building its pharmacy offerings for several years, including acquiring PillPack in 2018. Shares of the tech giant rose 2.4% in premarket trading following the announcement.

The pressure from Amazon comes as pharmacy stocks have already underperformed the broader market in 2020.

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Amazon Pharmacy: Online drugstore and Prime Rx discounts extend tech giant’s reach into healthcare

The new online Amazon Pharmacy reflects the company’s larger ambitions in healthcare. (Amazon Photo)

Amazon will offer prescription medications for home delivery through a new online drugstore, promising Prime members free two-day delivery and discounts of as much as 80% on medications purchased without insurance.

The new services represent Amazon’s big move into the online pharmacy business, following the tech giant’s $753 million acquisition of prescription-by-mail company PillPack in 2018.

Amazon will be competing for a bigger share of the estimated $300 billion U.S. pharmacy market against a host of online drugstores and pharmacy delivery services from big rivals such as CVS, Walgreens, Walmart and Target, as well as smaller startups and traditional drugstores.

Amazon Pharmacy, as the digital drugstore is known, will be available on and the Amazon App. Doctors and other healthcare providers will be able to send prescriptions to Amazon, at the request of a patient,

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