Amazon Pharmacy is an American online pharmacy which is a subsidiary of The business was launched on November 17, 2020, initially offering pharmacy service only in the United States.


Launch and business model[edit]

On November 17, 2020, Amazon launched Amazon Pharmacy.[1] The move was described as “arguably Amazon’s broadest push into the healthcare business to-date.”

Amazon Pharmacy’s business is based on online sales. The company offers free, two-day home delivery of prescription to Amazon Prime subscribers.[2] Amazon Pharmacy requires customers to establish a secure pharmacy profile to manage insurance and medical information.[3] At the time of its formation, Amazon Pharmacy’s operation was limited to the United States.[3] At the time of its launch, Amazon Pharmacy also announced its intention to offer a help line staffed by pharmacists and a discount program for uninsured customers.[4]

Challenges faced by Amazon Pharmacy include the need for customers to ask doctors to redirect prescriptions, customer habit in using nearby brick-and-mortar drug stores, and customer desire to speak in person with a pharmacist.[5]

Impact on existing pharmacies[edit]

The formation of Amazon Pharmacy was expected to result in disruption of the retail pharmacy sector.[6] On the day of its launch, stock prices for competitors dropped: GoodRx by 20%; Rite Aid by 16%; and Walgreens and CVS Pharmacy by 9% each.[4] In all, drugstores, drug distributors, and health insurers lost $22 billion in market value on the day of Amazon Pharmacy’s launch.[7]

An analysis from Citi Research called the announcement “a disruption to the system and competitive threat that will likely shift scripts away from the retail channel.”[6] An Edwards Jones analyst opined that Amazon Pharmacy was a particular threat to smaller drugstores that lack the purchasing power of major drugstore chains.[6]

History and relationship to PillPack[edit]

The establishment of Amazon Pharmacy followed Amazon’s acquisition of PillPack in June 2018 for a reported US$753 million.[8] In an interim step, Amazon rebranded PillPack in November 2019 as “PillPack, by Amazon Pharmacy”.[9] With the launch of Amazon Pharmacy, the company announced that PillPack would continue to operate as a “distinct service for customers managing multiple daily medications for chronic conditions.”[2]


  • ^ .mw-parser-output cite.citation{font-style:inherit}.mw-parser-output .citation q{quotes:”””””””‘””‘”}.mw-parser-output .id-lock-free a,.mw-parser-output .citation .cs1-lock-free a{background:linear-gradient(transparent,transparent),url(“//”)right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-limited a,.mw-parser-output .id-lock-registration a,.mw-parser-output .citation .cs1-lock-limited a,.mw-parser-output .citation .cs1-lock-registration a{background:linear-gradient(transparent,transparent),url(“//”)right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-subscription a,.mw-parser-output .citation .cs1-lock-subscription a{background:linear-gradient(transparent,transparent),url(“//”)right 0.1em center/9px no-repeat}.mw-parser-output .cs1-subscription,.mw-parser-output .cs1-registration{color:#555}.mw-parser-output .cs1-subscription span,.mw-parser-output .cs1-registration span{border-bottom:1px dotted;cursor:help}.mw-parser-output .cs1-ws-icon a{background:linear-gradient(transparent,transparent),url(“//”)right 0.1em center/12px no-repeat}.mw-parser-output code.cs1-code{color:inherit;background:inherit;border:none;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;font-size:100%}.mw-parser-output .cs1-visible-error{font-size:100%}.mw-parser-output .cs1-maint{display:none;color:#33aa33;margin-left:0.3em}.mw-parser-output .cs1-format{font-size:95%}.mw-parser-output .cs1-kern-left,.mw-parser-output .cs1-kern-wl-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right,.mw-parser-output .cs1-kern-wl-right{padding-right:0.2em}.mw-parser-output .citation .mw-selflink{font-weight:inherit}“Amazon opens online pharmacy with prescription delivery”. CBS News. November 17, 2020.
  • ^ a b Jordan Valinsky (November 17, 2020). “Amazon is now a drug store. It will ship prescriptions to Prime members”.
  • ^ a b Allison Xu (November 17, 2020). “Amazon launches Amazon Pharmacy”. TechCrunch.
  • ^ a b “How Bad Is Amazon Pharmacy for CVS and Walgreens?”. Barron’s. November 17, 2020.
  • ^ Angelica LaVito and Matt Day (November 17, 2020). “Amazon Expands Push Into Health Care With Online Pharmacy”. Bloomberg.CS1 maint: uses authors parameter (link)
  • ^ a b c “Amazon opens online pharmacy, shaking up another industry”. Associated Press. November 17, 2020.
  • ^ Cristin Flanagan (November 17, 2020). “Drugstores, Insurers Suffer $22 Billion Blow on Amazon Move”. Bloomberg.
  • ^ Farr, Christina (2019-05-10). “The inside story of why Amazon bought PillPack in its effort to crack the $500 billion prescription market”. CNBC.
  • ^ Garcia, Ahiza (2019-11-15). “Amazon rolls out ‘Amazon Pharmacy’ branding to PillPack”. CNN Business. Cable News Network. Retrieved 2019-11-18.
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