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Amazon Stepped Into The OTC and Pharma Market in the US

Amazon has stepped into the OTC and pharma market by launching a line of OTC health products with indications like allergy, digestive, cough, oral electrolytes, sleep aid in the US. This development could possibly have negative effects on physical and online pharmacies to medical companies. To face this new challenge, OTC and pharma companies should reconsider their current strategy.

It seems that the e-commerce giant is changing the game in the healthcare market and squeezing retailers by offering lower prices to customers. For instance, on Amazon, 200mg ibuprofen in packs of 500 tablets is sold at $6,98 while it costs $15,99 in CVS and $15,49 in Walgreens. According to CNBC, Amazon’s spokesman said the company would work hard to offer low prices across its entire selection.

Apart from that, Amazon’s future vision of health care is becoming clear, using its technological strengths such as Alexa’s pick up service to bring customized services to buyers.

With Amazon’s aggressive actions in the OTC and Pharma market, the players in the market, from drug stores to pharma companies, should be alarmed. The pharma industry is strongly influenced by the digital transformation. To deal with digital trends, it is necessary for OTC and pharma companies to consider and adjust their strategies to meet the customers’ changing needs and better fit into the market.

Categories of healthcare product sales on Amazon

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