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Americans keen on Amazon physical pharmacy presence

GlobalData has released consumer research into Amazon’s move into the pharmacy space via its $1 billion acquisition of PillPack.

54% of the 1,900 Americans surveyed approve of its decision to enter this space. Only 24% think that the move is a bad thing, with the rest being neutral. When it comes to where consumers would like Amazon to offer its pharmacy services, 61% are happy with mail order. However, a sizeable number would like to see the e-commerce giant develop a physical presence, either at its Whole Foods stores or via standalone pharmacies. Some also mentioned kiosks in malls and Amazon’s Go concept store. 

Almost 58% of consumers have at least a minor concern about sharing medical and health information with the company. On the flipside, almost 38% say they would have no problem at all; these consumers tend to be younger. Other barriers include a perceived lack of customer service, potential insurance restrictions and safety concerns about mail order dispensing.

“Consumers generally welcome Amazon’s move into pharmacy, most likely because they think it will increase competition and reduce prices,” says Neil Saunders, Managing Director at GlobalData Retail.“Despite concerns about sharing sensitive medical and health information, there are sufficient numbers who seem willing and able to use Amazon’s pharmacy services to allow the online giant to build a credible business and cause some disruption to established players."

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