Amazon has decided to enter the online medicine space in India (1). It will put the company into competition with established e-pharmacies, local players like NetMeds, PharmEasy, 1mg, and Medlife. The service will allow consumers to order over-the-counter medicines, essential health care products, and ayurvedic medicines and prescription-based medications. All the products listed on Amazon e-pharmacy store would be from a certified seller.
The Amazon Pharmacy has already started its services in Bangalore. It is going to expand over other cities all across India shortly.
The spokesperson of Amazon India recently stated that we are launching Amazon Pharmacy in Bangalore as part of our commitment to fulfilling our customers’ needs. He further confirmed the development by saying that it would help the consumers meet their essentials while staying safe in their houses, especially in the present.
Not Easy for Amazon to Foray into Indian e-Pharmacy
The online medical segment in Amazon came during a tremendous amount of demand for the service. People are buying products online in fear of catching the virus during the COVID-19 pandemic.
However, tapping into the online pharmacy segment is not going to be easy for Amazon. The reasons include regulatory hurdles, an ongoing war between offline and online pharmacy, and the delay of the concluding rules for e-pharmacy by the Indian government.
Experts believe that the Indian e-health sector will get 16 billion USD by the Financial year 2025. The segment will grow from 1.2 billion USD, with a rate of at least 68% (compound annual growth). The numbers as per a report by RedSeer Consulting, a research firm. They expected the sector to touch more than 57 million houses. The growth will be driven by the positive reception of consumers and sellers and the government’s supportive regulations and investments.
The Indian healthcare industry will grow at 17% by 2025 financial year as per RedSeer. It means that the segment will reach at 353 billion USD growth by the year. Previously in May 2020, Amazon has also announced its foray in the Food delivery segment of India,