THE RISE OF ONLINE DRUGSTORE & PHARMACEUTICAL ECOMMERCE
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In the ever-growing digital age, online drugstores have become an ideal destination for global users seeking convenient and safe ways to care for their health and purchase medications online. The robust growth of eCommerce and changes in user behavior have driven the expansion of this pharmaceutical eCommerce industry.
Below are some crucial insights into why pharmaceutical eCommerce has become an essential component of the modern healthcare system.
What is Pharmaceutical eCommerce?
Pharmaceutical eCommerce has become a promising business model in recent years. According to the “Healthcare eCommerce Global Market Report” compiled by The Business Research Company, pharmaceutical eCommerce is categorized into three main models:
- By type: drug, medical devices
- By application: telemedicine, caregiving services, medical consultation
- By end user: hospitals, clinics, other end users
Pharmaceutical eCommerce by Type
This is a model that enables consumers to order and purchase various products such as prescription drugs, over-the-counter medications, vitamins, dietary supplements, healthcare, personal care, etc., through online shopping channels.
Some well-known pharmaceutical eCommerce by type examples include Droga Raia (Brazil), Netmeds (India), Pharmacity (Vietnam), etc.
Pharmaceutical eCommerce by Application
Consumers can access healthcare consultation, advice, and diagnostic services through various applications for this type of pharmaceutical eCommerce. Under this model, consumers typically subscribe to and pay for these services through packages or on a subscription basis (monthly or yearly).
Companies adopting this service-oriented eCommerce model include Teladoc (USA), iCliniq (India), SBB Healthcare (Vietnam), and others.
Pharmaceutical eCommerce by End User
This pharmaceutical eCommerce model often involves websites or applications created by hospitals/clinics to assist patients in scheduling appointments, offering healthcare packages, prescription medications, and more.
Examples of hospitals/clinics following the eCommerce model by end-users include The Royal Melbourne Hospital (Australia), NYC Health+ Hospital (USA), Vinmec (Vietnam), and others.
The Potential of Pharmaceutical eCommerce
Certainly, Covid has not only led to a rise in traditional healthcare expenditures but has also acted as a driving force for pharmaceutical eCommerce. In the United States, telehealth visits witnessed a remarkable surge of 2,600% in March 2020 (during the peak of the COVID-19 outbreak in the U.S.) compared to the same month in 2019.
The growth of the pharmaceutical eCommerce market seems unabated. According to a recent report by CMS, total healthcare spending in the United States reached $3.8 trillion, marking a 4.6% increase in 2022. The Asia-Pacific region is anticipated to experience rapid growth in healthcare eCommerce, with a projected CAGR of 20.5% from 2020 to 2027.
Nielsen predicts that the pharmaceutical eCommerce market in Vietnam will attain a value of $10 billion by 2025.
Some other reasons for the rise of pharmaceutical eCommerce include:
- Population Growth and Healthcare Demand: The increasing global population and improving quality of life lead to a growing demand for healthcare.
- Advancements in Information Technology and the Internet: The development of information technology and the Internet facilitates easy access for consumers to information about healthcare products and services, fostering a greater inclination towards online pharmaceutical shopping.
- Changes in Consumer Lifestyles: Consumers are becoming busier, and there is a trend towards increased online shopping, especially after COVID-19, creating favorable conditions for the growth of online pharmacies.
Top brands built their pharmacy eCommerce websites
Apollo Pharmacy (India)
Apollo Pharmacy is a well-known retail pharmacy chain in India, affiliated with the Apollo Hospitals. After years of operation in the healthcare sector, Apollo decided to establish an eCommerce website to serve millions of customers nationwide. The Apollo eCommerce website is built on the Magento platform, ensuring the capability to manage an extensive product catalog.
Beyond selling prescription and non-prescription drugs, as well as health care products, Apollo also provides various related services. Among these, notable offerings include online consultation services, health check-up appointments, vaccination appointments, and insurance sales.
Teladoc (USA)
Teladoc Health, Inc. is an American healthcare technology company headquartered in Purchase, New York. The company provides remote healthcare services, including video consultations, phone consultations, and remote health monitoring.
By rapidly deploying a website and eCommerce application, along with the utilization of cutting-edge technologies such as artificial intelligence (AI), machine learning (ML), and data analytics, Teladoc has been able to enhance customer experience and deliver improved remote healthcare services.
Mayo Clinic (USA)
Mayo Clinic was founded in 1889 by Dr. William W. Mayo and his two sons, Dr. Charles and Dr. William J. Mayo. Initially, Mayo Clinic was a small clinic specializing in providing healthcare services to the local community. However, the hospital quickly expanded and became one of the leading hospitals in the world.
Much of Mayo Clinic’s success can be attributed to the early adoption of eCommerce, allowing patients to schedule appointments, check test results, and purchase medications online. This has helped patients save time and effort, contributing to Mayo Clinic’s overall success.
Learn more: The 10 Best Remarkable Pharmacy eCommerce Websites
The Bottom Line
Pharmaceutical eCommerce not only brings convenience and diverse choices for consumers but also presents attractive business opportunities for healthcare enterprises. If invested systematically and guided correctly, businesses in this field can seize significant opportunities in this promising market.
With extensive experience in implementing eCommerce for customers in various countries, SECOMM understands the difficulties and challenges that businesses face during the deployment process.
Contact SECOMM now or call directly at the hotline number (02871089908) today for a free consultation
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