Amazon abandons its plans to sell & distribute medicines to hospitals
Category: #health  By Dhananjay Punekar  Date: 2018-04-18
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Amazon abandons its plans to sell & distribute medicines to hospitals

Amazon Business has reportedly decided to drop its plans of selling & distributing pharma items to hospitals. Currently the eCommerce giant, that is involved in the sale of products to business customers in bulk, is on the verge of selling less sensitive medical goods to smaller clinics and hospitals.

Sources claim that the company’s decision may have come on the heels of the fact that large hospitals have been rather reluctant to change their conventional purchasing behavior, typically inclusive of loyal corporate relationships and middlemen. In this scenario, Amazon will require a stronger logistics network, which can effectively handle temperature-sensitive pharma products.

Reports cite that the firm is likely to add direct-to-consumer channels to its business operations. The company has also been constantly seeking opportunities to expand its eCommerce business across the healthcare sector via various groups such as Alexa and “1492.” Amazon has been selling medical equipment such as stethoscopes, glucometers, and gloves to hospitals and clinics since quite a while now. However, experts have revealed that the online retailer has been finding it difficult to enter into sales & distribution agreements with large hospitals.

Amazon’s contribution towards the healthcare business is very negligible, which includes dental centers, ambulatory surgery establishments, and small physician units. According to the company sources, Amazon serves healthcare businesses of myriad sizes, ranging from large integrated delivery networks to medium sized community clinics. The key officials of the firm further stated that it provides services to doctors, dental clinics, old persons, and long-term care units.

Medical experts are of the view that the firm’s warehouse as well as logistics system is constructed in a way that cannot provide temperature-sensitive pharma items. Incidentally, Amazon sells temperature-sensitive pharmaceutical products via customized delivery.

As per Pharmaceutical Commerce, Pharma products sector was worth USD 283 billion in 2017, and is likely to grow 70% by 2021.



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Dhananjay Punekar

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Dhananjay Punekar

Dhananjay Punekar presently develops content for a slew of portals, including Market Size Forecasters and Algosonline. A post graduate in mathematics and business administration, he worked in Infosys BPO Limited prior to switching his professional genre. As a content wr...

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