HomeInvesting NewsNikkei reports that Amazon is interested in the Japanese prescription medicine business.

Nikkei reports that Amazon is interested in the Japanese prescription medicine business.

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Online retailer thinks about establishing a platform with neighborhood pharmacies.

Amazon (NASDAQ:AMZN)

The Nikkei newspaper revealed on Monday that Amazon (NASDAQ:AMZN) is attempting to break into the Japanese market for the sale of prescription medications.

Nikkei reported that the e-commerce giant is considering partnering with small- and mid-sized pharmacies for the service, starting next year when electronic prescriptions are finally permitted in the Asian nation, citing people involved in the project.

As it seemed to be adapting to growth expectations, Bloomberg reported last Friday that Amazon (AMZN) has scaled back plans for dozens of locations around the United States.

Growth forecast

In contrast, a recent Bank of America analysis claimed that Q3 saw an increase in Amazon’s (AMZN) e-commerce growth rates.

Beginning next year, when electronic prescriptions are finally permitted in Japan, Amazon aims to collaborate with small- and mid-sized pharmacies to offer the service, according to Nikkei, which cited persons involved in the initiative.

The nation’s largest pharmacies are attempting to create online drug counseling through the use of their own apps and other tools. Systems that offer online medical care and pharmaceutical counseling have been created by Tokyo-based Medley and other businesses, and they have a history of being introduced to pharmacies and medical facilities. These businesses can offer services that are comparable to those offered by Amazon, but fierce competition with the multinational online retailer and its enormous client base is unavoidable.

In Japan, there were about 60,000 pharmacies that filled prescriptions as of fiscal 2020. With 70 wholesalers nationwide and almost 60,000 pharmacies, their distribution network is extremely dispersed. Small pharmacies have popped up in front of hospitals and other places where it is convenient for them to keep prescriptions in stock over the previous ten years, increasing the number by around 10%. Traditional pharmacies that rely on handy locations for their operations will probably face fierce competition if internet distribution becomes commonplace.

Featured Image – Megapixl ©  Pxhidalgo 

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