Amazon announced two new pharmacy offerings for customers to purchase medications:
Amazon Pharmacy: a new store on Amazon that allows customers to purchase medications and manage insurance prescriptions.
Prime Rx: Amazon Prime members who do not have insurance can save money at both the Amazon Pharmacy as well as at over 50,000 other participating pharmacies nationwide.
As with all Amazon services, the goal is to make it easy and convenient for the customer. If you have insurance, all you do is enter your name, birth date, and the last 4 digits of your Social Security number. After searching for a few seconds, Amazon pulls up your insurance information and prescription history. You then select your medication, purchase it, and track it. You can have your physician call in the prescription to Amazon, or Amazon will reach out to the doctor for you. Note: As of December 2020, Amazon does not allow manufacturer copay cards.
The Amazon Prime prescription savings benefit is not insurance. It is included with Amazon Prime membership at no additional cost.
The benefit provides savings on the price you pay for prescription medications if you are not using insurance. It can be used at over 50,000 participating retail pharmacies in the U.S. and Puerto Rico, including Amazon Pharmacy.
Currently offers greatest benefit to cash-paying or HDHP patients on generic medications
We know that Amazon is all about service, and service does not end with functional benefits. Its promise is grounded in universal insights and what you’d expect from Amazon – including protection of your privacy.
When Amazon Pharmacy’s launch was announced, shares of major retail pharmacies and GoodRx plummeted.
The Diffusion of Innovation (DOI) model describes how novel services and products get adopted in populations through:
Decision-making process to adopt
Factors that facilitate adoption
Kindle demonstrates the importance of a quick initial diffusion through early adopters as well as a strong secondary diffusion afterwards
Nov 2007: Amazon launches Kindle. Sold out in six hours
2007-2017: Barnes & Noble store-count drops. Amazon gradually starts selling more e-books than physical books Feb
2017: Amazon accounts for 80+% of e-book sales
The easier it is to fill your script, the easier for your patient. To see if Amazon can have an impact on your brand, ask yourself:
Is your brand available at the Amazon pharmacy?
What age demo is your patient/caregiver?
Highest Amazon Prime usage exists in adults ages 18-35, which may indicate a faster adoption curve among the millennial audience
That said, penetration among 35-54 and 55+ age groups is estimated to be higher today than in early 2020
Do copay cards greatly impact patient choice? As Amazon Pharmacy does not take copay cards, this can negatively impact a brand if a patient wants to use Amazon services
Do you have a lot of cash-paying customers or ones on high-deductible plans who can benefit from Amazon savings?
Amazon Pharmacy may…
How might we capitalize on current and projected Amazon Pharmacy services?
Continue to educate the HCP on services regardless of their patient’s pharmacy – and anticipatepotential hiccups(such as copay cardincompatibility)
Promote branded PSPs when patients search product or product-related keywords (unconfirmed if and when Amazon would sell media)
Anticipate and plan for compatibility with PSP copay savings cards
Leverage Amazon Pharmacy services for cash-paying patients (e.g. Rx savings card)
Please contact your account leads or firstname.lastname@example.org if you have any questions or would like to discuss any of the above.