Amazon Pharmacy, the new online pharmacy in the midst of the Coronavirus pandemic, is born.
The new Amazon Pharmacy service, which allows you to receive the medicines you need at home.
We analyzed Amazon’s new service to understand what effects it may have on the market. Basically what Businesses it can overwhelm.
Then we developed a 5-point strategy to position our Companies in the Market, acquire new customers and win the competition.
Despite the climate of uncertainty these days, precisely because of Covid-19, Amazon has continued to develop its business.
In fact, the world’s most famouse-commerce, has put into practice the advice we have been giving our customers since the beginning of this pandemic: DON’T STOP.
Here you can find our article, DON’T STOP!
So Amazon rode the wave of the moment, and considering the rise of online sales of any product on the market, the pharmaceutical sector was just the last piece of the puzzle.
1. Amazon Pharmacy. What is it.
Amazon never ceases to amaze, and even in the midst of the “Coronavirus crisis,” it announces the launch of the new Amazon Pharmacy. A modern online pharmacy.
And like a good “alternative method,” Jeff Bezos’s eCommerce company informed the world of this Amazon news through a simple tweet on Twitter.
The new Amazon Pharmacy service, currently planned exclusively for the United States, will give Prime users the opportunity to purchase generic drugs, with discounts of up to 80 percent.
Even to those who do not have health insurance.
A real revolution in the pharmaceutical market, which has the industry giants worried in no small part.
2. Amazon news. Revolution… ?
As early as years ago, in 2018, Amazon started to go the online pharmacy route by purchasing PillPack. The portal for selling pharmaceutical products online.
So we can call Amazon Pharmacy, a kind of evolution of this pharmaceutical e-commerce.
It should be considered an innovation, however, as most of the world’s population has always used online shopping for a variety of product categories. Less so than for pharmaceuticals.
However, just because of the Corona Virus pandemic, people had to adapt.
In addition to buying more and more online, preferring to shop from home rather than in physical stores, there has been a need to be able to buy anything online.
Including medications necessary for one’s health.
And here Amazon breaks through to our brains, and debuts with:
“Prescribed by your Doctor, delivered by us.”
3-or perplexity?
Although Amazon is known to be among the most innovative companies of the moment, it is often the innovations that generate the most puzzlement.
In fact, it is correct to consider drugs as “rather delicate products.” And in a sense, private ones as well.
What generates the most perplexity, however, is the delivery of a drug by uploading one’s prescription to the portal.
In fact, this system could seriously compromise the privacy of users, who, in order to purchase from the new Amazon service, will be forced to share their sensitive data on the web.
Of course, being a completely new service, and unknown to most people, we cannot yet give an accurate assessment of the new Amazon service.
Only time will help us understand whether Amazon, with this first step in the pharmaceutical sector, “got it right.” Again.
4. So, Amazon Pharma-yes? Or Pharma…no?
As we have said, the new Amazon service for the time being will be active only in the United States.
And it will be available to all Prime users. Including Prime subscribers without health insurance.
Considering the continuing controversy over American health care, political debates included, Amazon is also making a lot of waves here.
But not only that.
In fact, considering the overcrowding in medical offices in the recent period, Amazon did not miss the opportunity to offer an even more positive Customer Experience.
Thus, Amazon Pharmacy will be able to play the role of an intermediary, between the user and his or her doctor of choice, in order to request a prescription for the medication the customer needs.
Let me explain further.
As we pointed out earlier, anyone will be able to purchase the drugs they need by uploading their prescription to the new service. Of course, for those drugs that are required to do so.
But in the event that the user lacks the prescription, Amazon will be able to act as an intermediary, and request it directly from the prescriber, instead of the end user.
These novelties can be seen as a “godsend” in certain cases and contexts. While rather critical from the opposite point of view.
“How convenient not to have to go to the doctor to ask for a prescription. Amazon takes care of it!”
“So Amazon will talk to my doctor, and understand my health condition!”
What do you think about this news from Amazon?
Write us your thoughts in the comments
5. How to Protect Your Business
The topic we have addressed in this article is very close to our hearts.
Basically, it highlights how every company’s business, can be challenged by a new competitor.
If we think about the pharmacy world, until a couple of decades ago, it was run almost like a fiefdom.
The pharmacy was passed down from father to son.
Then came parapharmacies, also placed in shopping malls.
Next came the Web, with more or less legal solutions for sourcing drugs. And now it is the turn of Amazon.
The questions we constantly ask ourselves in the agency are:
- What can undermine our work in the future?
- What should we do to protect our work?
- What can be the sources of disruption or, rather, loss of turnover?
There is no pre-packaged answer, but there is definitely a strategy to secure our business.
It is low on 5 main factors:
5.1) Competitor Analysis
If we do not know how our competitors are positioned in the territory, we risk fighting an unequal war.
By Competitors, we mean not only those we know historically but, also and especially, those Companies or businesses that have undertaken a structured and organized Web Marketing strategy.
We probably don’t know them. Or they were much smaller companies than ours.
Then they created an e-commerce, an effective SEO strategy, they decided to invest in ADV campaigns and suddenly, we find that they are eroding our market.
“They are taking away our customers.”
For this reason, it is essential to carry out theanalysis of competitors.
5.2) Customer centric strategy
If a customer has decided to switch from us to a competitor, it means they have found “something extra.”
I assure you that price is not the only determining factor in a sale.
People are willing to spend more if they get better service in return.
Our main goal must become customer satisfaction.
At Factory Communication, we totally embrace the philosophy of the Inbound Marketing: attract, convert, close, delight.
These are the factors behind the Sales Funnel and the Flywheel.
We devote so many articles to these topics because they are fundamental and strategic for protecting and increasing the business of every Company.
Inbound Marketing is a philosophy that is based on “pampering” the customer.
Not only in the sales stage but, more importantly, in the after-sales stage.
A happy customer will speak well of us, and our services and products, to at least 5 other people.
This triggers positive word of mouth, which generates healthy and valuable Business, totally free of charge.
So much so that we have moved from the Sales Funnel, where the customer is a consequence of our strategy, to the Flywheel, where the customer is at the center of the strategy.
You can explore this topic further here:
How to turn the Sales Funnel into a Flywheel and grow with customers
5.3) An excellent user experience
We need to improve after-sales support, technical interventions, and the use and enjoyment of our products and services.
As we said earlier, a happy customer is a valuable resource.
Unfortunately, many companies, once they have sold, focus only on acquiring new customers.
They believe that in order to increase turnover one must, necessarily, increase the number of customers.
This may be true in some cases but, generally, one of the winning factors for improving turnover and marginality comes through increasing turnover per customer.
The customer knows you, trusts you, and is willing and interested in buying a new product or service.
5.4) Focusing
The Focusing Strategy is one of the most powerful and effective positioning strategies.
It is based on Competitor and market analysis.
It is critical to understand where the market is heading. What are the new wants and needs to be met.
Our advice is to choose a market niche, analyze it and, if possible, create a sub-niche.
How many wedding dress ateliers exist in Italy, or in your city?
Can opening yet another store focusing on beautiful windows be enough?
In our opinion, it is more performing to choose a niche:
“We specialize in red wedding dresses.”
True, only a small percentage of women want to get married in a red dress, but rest assured that they will all come to you.
Because yours is the only store in Italy that specializes in red formal dresses.
Another example.
How many restaurants, pizzerias, etc. are there in a city?
How many write typical cuisine, wood-fired oven pizza, etc.?
What is the differentiating element? Why choose one over another?
Why not open a Restaurant for singles only, or for homosexuals, for under 30…..
The watchword is specialized = focused.
5.5) Strategy… strategy… strategy.
In the previous four points, we looked at the steps we need to take to position our company in the market.
The last point is definitely crucial.
If we want to ensure a bright future for our company, it is essential to design and implement a Marketing and Communication Strategy to properly position our company in the market, and win over our competitors.
Unlike 30 or 40 years ago, where the customer was passive to “advertising” strategies, now the customer is active.
Customers used to be subjected to commercials. Whoever shouted the loudest, and made the most commercials, won.
The Internet has totally changed the world, returning power to the customer.
Now people inquire, analyze, compare the service. They read reviews, comments, data sheets.
They decide what, how and when from the comfort of their couches at home or from their office desks.
And they do so, almost always, in total autonomy.
As we always say, an effective Marketing and Communications strategy is critical. But it doesn’t work miracles.
If the service we deliver is unsatisfactory, if we treat the customer poorly, if we promise one product and then refile another–there is no strategy that will hold.
We have used Amazon as an example in our other articles.
Learn more about the e-commerce giant: