Not satisfied with only selling vitamins, Amazon and pharmacy "rob business"

[China Pharmaceutical network enterprise news] Amazon, which has changed the way people in the United States (or the world) shop and used prime video to enter the streaming media, has made new moves! Recently, the e-commerce and technology tycoon seems to be focusing on the challenging medical field, ready to do a big job in the pharmaceutical industry According to CNBC's report on May 16 local time, Jeff Bezos is planning to recruit a group of medical talents, including the general manager of a possible pharmaceutical branch in the future, as well as personnel from various departments related to medicine According to the report, Amazon's Japanese website has added the transportation of drugs and cosmetics to the "prime now" option, as well as a new drug classification page According to Amazon's habit, the new service will be tested on websites outside the United States before being launched In the stock market, some large drug chains were immediately affected - CVs and Walgreens both ended down more than 3% Not satisfied with selling only vitamins, it's easy to see why Amazon is interested in pharmacies as Amazon continues to "compete" with pharmacies For example, CVS's mail order drug business generated more than $10 billion in revenue in the quarter If Amazon is considering moving into a broader drug benefit management (PBM) business (which Amazon is reportedly recruiting), it is testing a business that made more than $200 billion last year On the other hand, if Amazon can significantly improve its current drug mail order with its own experience, it may also have a significant impact on retail pharmacies In fact, Amazon has made a certain impact on the business of traditional pharmacies, such as its own brand vitamins, batteries, groceries, etc sold on its e-commerce platform; however, drug sales is a more profitable target - drug sales provide the vast majority of revenue for large pharmacies in the United States At present, most people still buy prescription drugs in physical pharmacies In the quarter, only 14.5% of medical reimbursement in CVS pharmacies is completed through mail order channels Therefore, Amazon's target may also be to establish offline physical pharmacies Stephen buck, founder of goodrx, a healthcare company, said: "I think Amazon will bring more transparency to drug prices." Amazon, which can sell anything, can sell medicine? With so many people, Amazon has always been unafraid of exploring new areas At that time, many people thought that it was impossible for a large company like Microsoft to dominate the field of Business Computing But Amazon did Its AWS (Amazon cloud computing service) generated more than $13 billion in revenue in the past year, and has become a major player in the rapidly growing cloud computing market But while companies with strong operational capabilities like Amazon are enough to intimidate any rivals (and their investors), entering the pharmaceutical industry is not easy There are many challenges in drug distribution First of all, there are many more restrictions on drug delivery than ordinary goods In addition, Amazon has to face the existing health insurance companies and PBM companies in the market, because PBM is not Amazon's professional director in managing drug profits, controlling costs and improving efficiency But at the same time, don't forget that Amazon's specialty is selling everything Every year, the sales volume formed on Amazon platform is unmatched by any other enterprise, and chain drugstores are no exception It is far superior to its potential pharmacy competitors in terms of fast delivery and consumer experience This advantage is also an opportunity for Amazon If it can break through many restrictions in the pharmaceutical industry, it may quickly penetrate the online and mail order drug market "Amazon's goal is to dominate the world, and of course, they have succeeded step by step in every area they decide to enter." CNBC reporter said.