Amazon.com is an American tech multinational web service provider company that includes e-commerce, cloud computing, digital streaming, and artificial intelligence to provide products such as apparel, auto, and industrial items, beauty and health products, electronics, grocery, books, games, jewelry, kids and baby products, movies, music, sports goods, toys, tools, and other related products. It was founded by Jeff Bezos, in 1994 in Washington, U.S.
U.S e-commerce company, Amazon.com Inc is supposed to enter into the the partnership with the prescription drug sales market in Japan in the year 2023 and increase the empowerment and involvement of the citied people with the project, according to the Nikkei newspaper report on Monday. Amazon planned to acquire the primary health care startup One Medical at the value of $3.9 Billion.
As per the report of the authentic source, if Amazon finalizes the consideration and takes the move forward, it will be able to invest 10.6 trillion Japanese yen (US$ 75 billion) in the Japanese prescription drug market.
Amazon company already runs its online pharmacy business in the US since 2018. Their acquired startup “PillPack” turned into the Amazon Pharmacy business in 2020. But they are facing challenges to reach up to their ambitions related to health care products and drugs. According to the Insider report, the cultural clash between technology and healthcare is the reason for the unit failure of their services.
Nikkei published that people in Japan will be able to order prescriptions online after online doctor visits for the first time next year. Major pharmacies and other Japanese companies are also working on similar programs that would give patients digital access to information on their medications.
The main objective of entering the Japanese prescription drugs by Amazon is to deliver the medicines or prescribed drugs rather than going to the pharmacy. Amazon will not be the owner of any kind of pharmacy to its own inventory. They are collaborating with the small or medium sized pharmacies in Japan. They create their own delivery network throughout the city to deliver the drugs from the pharmacies to customers’ homes with the involvement of local people.
The strategy Amazon appears to be taking in Japan partnering with groups providing medicines to patients rather than the provide care. It had recently announced the purchase of subscription-based primary care company One Medical, which is already a functioning healthcare business.
Nikkei reported that Japan can get growth opportunities with Amazon. In the year 2020, 10% of prescription drug sales increased through the 60000 pharmacies in Japan. The government set the price of prescription drug prices in Japan while the distribution system is highly fragmented, with 70 wholesalers nationwide and almost 60,000 pharmacies.
A spokesperson told Insider that the company is “proud of the work we’ve done, and will continue to invent, learn from our customers and industry partners, and hold ourselves to the highest standards as we further help reimagine the future of health care and the role Amazon can play.”
Is Amazon Business good in Japan?
The total number of online shoppers in Japan increased by 20%, while 35% more shoppers over the age of 65 years old began shopping online as well. All this to say in 2020, the total amount spent online in Japan increased by a shocking 20% in the last year.
There are three major e-commerce platforms in Japan:
Rakuten, the most veteran platform, founded in 1997, has accumulated a substantial following of 51.4 million active users in April 2020 and earned the equivalent of €29.6 billion in 2020.
Yahoo Japan shopping began in 1999 and hasn’t built as great a customer base, but is 29.4 million users strong with a €6.76 billion revenue in 2020.
Finally, Japanese online shoppers are turning to the newest platform of the three more than ever: Amazon. Starting in Japan in 2000, Amazon Japan has the highest user base, with 52.5 million active users and a revenue of €25.8 billion in 2020.
Statistics show that online shoppers often don’t look beyond the first search results page. In fact, 70% of shoppers make a purchase from the first results page while 35% check only the first product and 65%, the first three products. This just emphasizes the importance of having high-ranking products on Amazon.
By analyzing the statistics of business of Amazon Japan, it can be concluded hopefully that entering in the Japan prescribed drug market will set the benchmark to the company in global trade.