Amazon’s long-standing online drugstore has finally come out. On the evening of November 17, Beijing time, Amazon launched an online pharmacy in the United States to provide online distribution of prescription drugs, officially declaring war on pharmacy chain enterprises. After three years of preparation, once it came out, at the same time, the stock prices of traditional medicine retail giants fell. At the special node of the epidemic, Amazon online drugstore was prepared. However, the future is still unknown whether Amazon can break through the layers of containment after the giants have been entrenched for many years. < / P > < p > unlike traditional medicine retailing, the new store, called Amazon pharmacy, allows customers to compare prices when buying drugs on the company’s website or app. Shoppers can switch between insurance payments and non insurance options at checkout, and Amazon offers substantial discounts to prime members of the company’s loyal club. According to reports, most insurance policies in the United States are applicable to Amazon online pharmacies, and prime members can enjoy 20% off ordinary drugs and 40% off brand drugs without paying through insurance, and can enjoy two-day delivery. < / P > < p > “when Amazon looks at the business of traditional Chinese medicine room, it is obvious that it refers to the business model and high market value scale of Ali health and Jingdong health.” Huang Sheng, an analyst of property and economic communities, told Beijing Business Daily that compared with traditional retail pharmacies, Amazon has unique advantages, namely its strong cloud computing capability and logistics service efficiency. Therefore, for Amazon, pharmaceutical retail is a huge potential and undeveloped rich ore. By entering the pharmaceutical industry, Amazon has opened up a consumer market worth more than $300 billion, according to Morgan Stanley. “The repeated purchase characteristics of drugs, as well as smaller package sizes, should also be well integrated into Amazon’s existing logistics orders to increase the gross margin of each shipment,” the analyst said < / P > < p > under the new epidemic situation, the development of online pharmacies is favorable, and more than 150 million prime members of Amazon will become potential customers of Amazon online pharmacies. Beijing Business News reporter contacted Amazon for an interview, but no reply was received as of the time of publication. < / P > < p > according to healthcare weekly, the current market size of pharmacy business in the United States is about 312 billion US dollars, and almost all the growth of 3% every year comes from the improvement of online pharmacy and distribution services. Considering the special period we are in, online shopping for prescription drugs is more attractive than ever. < p > < p > the capital market is also quite optimistic. Affected by the above news, the shares of several pharmacy chains and distributors in the United States have fallen sharply, while the shares of Amazon have increased by nearly 1%. Specifically, Walgreens fell more than 9%, CV, the largest drugstore operator in the United States, fell 9%, ritaid fell more than 16%, and goodrx, a California based company that offers discounts to 75000 U.S. pharmacies, fell 20%. Analysts at evercore ISI, a brokerage firm, said in a report that Amazon has injected new vitality into an industry dominated by several large distribution pharmacies such as CVs, CIGNA and United health. < / P > < p > although the launch of online pharmacies is at the special node of the epidemic, Amazon has been planning for a long time. Unlike conventional e-commerce or online grocery business, online sales of prescription drugs is a strictly regulated business. < / P > < p > it is reported that Amazon pharmacy can provide a series of non patent drugs and prescription drugs, such as triamcinolone acetonide steroid cream, insulin, metformin, and sumatriptan for migraine, which are commonly used in the pharmacy. In addition, Amazon does not provide drugs that fall under the category II Classification of the Convention on psychotropic substances, such as many common opioids such as oxcontin. < / P > < p > when purchasing prescription drugs in Amazon pharmacy, buyers need to register their personal account on Amazon website and let doctors send electronic prescriptions to their accounts. It is worth noting that doctors can directly send prescriptions to Amazon drugstores, and patients can also ask drugstore chain giants such as CVs and Walgreens to transfer their personal prescription drug records to Amazon. < / P > < p > and all of this, Amazon has begun to lay out three years ago. In 2017, Amazon applied to the US multi state pharmaceutical Commission for permission to become an online distributor of drugs. < p > < p > a year later, Amazon bought pillpack, an online drugstore, for $1 billion. On the day of the announcement, shares of major drugstore chains including Rite Aid, Walgreens and CVs fell 8% – 10%. < / P > < p > who is the pillpack that has made the pharmaceutical giant evaporate $13 billion? In fact, the year before Amazon acquired pillpack, its sales were only $100 million, compared with about $30 billion in e-commerce sales of pharmaceuticals and beauty products across the United States. What really scares the giants is pillpack’s license to sell prescription drugs. It is reported that pillpack has obtained approval from local regulators to sell prescription drugs in 49 states. < / P > < p > and in the past two years, Amazon has been trying to get more state licenses to distribute prescription drugs nationwide, which has been an obstacle to its expansion into the drug supply chain, according to analysts at Jeffrey securities research. < p > < p > at that time, Wal Mart, a retail giant, was also bidding with Amazon for pillpack. Despite the defeat, since the outbreak of the new crown, the demand for door-to-door drug delivery and related online services has increased, and many drug sales enterprises in the United States have arranged one after another. CVs and Walgreens offer same day delivery services in many markets, as well as services to help consumers monitor chronic diseases such as diabetes, while Amazon online pharmacies currently do not offer the latter service. < / P > < p > in the final analysis, Amazon’s entry into the retail industry is to compete with the traditional medicine retail. “Amazon’s pharmacy business will, to a certain extent, seize the retail market of CVs and other enterprises. In compliance with the laws and regulations of the United States and the standards of the pharmaceutical industry, this will benefit Amazon’s market value and increase production expectations for a long time.”. Huang Sheng pointed out. < p > < p > < p > and the giants have also released “cruel words”. “In the highly competitive pharmaceutical market, new entrants are no surprise to us,” CVS said. While pharmacies are a core part of our business, CVS health offers a lot more services than corner pharmacies. ” According to public information, cvspharmacy is the largest retail drugstore chain in the United States, and 70% of Americans have at least one CVS pharmacy within 5 km of their life. Walgreens said in a statement that it has provided customers and patients with a comprehensive and growing range of medicines, health solutions, and free one day and next day delivery options. < / P > < p > however, Amazon said that if Prime members prefer to shop in person, its non insurance discounts apply to more than 50000 physical pharmacies – including those run by competitors. < p > < p > Amazon will offer the service to users over the age of 18 in 45 states starting this week. However, Zhao Heng, a pharmaceutical expert, pointed out that although Amazon has obtained regulatory permission, there are still compliance problems in the storage and transportation of drugs, which may bring huge obstacles to Amazon, and the company needs to find ways to solve them. Zhao Heng explained that consumers who buy prescription drugs often trust local pharmacists and will always buy drugs from the same pharmacist. Part of the reason for this phenomenon is the sensitivity of drug treatment. These consumers are also usually older, so they may not be used to online shopping. “It’s much more difficult to sell medicine than to sell food,” he said. There are complicated problems in this market segment. From the perspective of relationship, the pharmaceutical industry may be more difficult to break than other retail market segments. ” So while Amazon has successfully shaken many consumer industries, it will face huge challenges if it wants to subvert traditional pharmacies. 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