American online shopping giant Amazon plans to stake its claim on the $16 billion Australian pharmaceutical industry.
The online store will open its first warehouse down under before the end of the year, and soon it could supply consumers with heavily discounted prescription medication as well.
While those buying up on behind the counter medication would have lower prices to look forward to, smaller traders would likely be shoved out of business.
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Amazon is set to take hold of the Australian pharmaceutical market if it begins distributing discount prescription drugs online through a Sydney business
'When Amazon enters a category, price becomes really, really clear and levels of value become much more transparent for a customer to be able to see,' Joe Rogers from The Contenders brand consultancy told Nine News.
'Broadly, there will be significantly more pricing pressure in that category. Amazon is able to offer really innovative services like Amazon Prime so you’d be able to get your drugs on your doorstep within an hour in some capital cities.' RELATED ARTICLES
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But before it attempts its takeover, under Australian law Amazon must first secure a local business willing to act as its conduit.
Rumours which are yet to be confirmed, say the company has already gained partnership with a Sydney retailer, which will allow it to dispense its products online through the local distributor.
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Those buying up on behind the counter medication would have lower prices to look forward to, but smaller traders would likely be shoved out of business
Amazon will need to offer even cheaper prices for already Government subsidised prescription medication in order to acquire market supremacy.
The nation's Pharmacy Guild has strict regulations in place which has successfully prevented Coles and Woolworths from being able to offer prescriptions.
While online purchasing of prescription medication is fast emerging a conveninent and often cost-saving method for consumers, the Guild’s Catherine Bronger says 87% of people lived less than three kilometers from a pharmacy.
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Joe Rogers (pictured) from The Contenders brand consultancy says Amazon would force prices to become transparent across the Australian pharmaceutical industry
She said utilising online services could take away from chemists having a personal interaction with their customers.
'It's actually about sitting down with the patient and making sure that whatever medication the doctor's prescribed for you is appropriate,' she said.
Amazon would join Chemist Warehouse, Terry White and Sydneydrugs.com in the selling of pharmaceuticals over the internet for Australian consumers.
Senior managers have apparently already been hired from global health companies Colgate-Palmolive and Procter & Gamble.
