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Amazon could probably upend drugstores, too

If Amazon is thinking of going after the broader pharmacy benefit management (PBM) business—and that's a possibility, given it reportedly hired someone to create an internal PBM—then it's looking at a sector that brought in more than $200 billion in revenue last year.

And American drugstores—as Europeans are fond of reminding you every single time you ask them where you can buy a hair elastic or a can of soda—do sell a wide variety of convenience items.

And while there is already a lot of activity in the mail-order pharmacy space, Amazon has a couple of competitive advantages there: free guaranteed two-day shipping if you have Prime, and the ability to pick up a pair of socks and a television set while you're getting your blood pressure meds.

So I don't find it plausible that these barriers to entry are high enough to keep Amazon from causing CVS and Walgreens a whole lot of pain.

That's not just for the sheer joy of putting competitors into the grave; it's also because broader reach increases Amazon's market power—and its benefit to its customers.

READ MORE (Crain's Chicago Business)

  • (CVS) Shares now down at $79.02 Faruqi & Faruqi, LLP is Investigating…ExpressNewsline
  • CVS Health Corporation (NYSE:CVS) Position Decreased by Regent Investment ...BNB Daily (blog)
  • Sippican Capital Advisors Has $383000 Stake in CVS Health Corporation (NYSE:CVS)BNB Daily (blog)
  • CVS Health Corporation (NYSE:CVS) Earns News Sentiment Rating of 0.19Sports Perspectives
  • Boston Family Office LLC Has $8.77 Million Stake in CVS Health Corporation (CVS)BNB Daily (blog)
  • CVS Health Corporation - Receive News & Ratings DailyTheOlympiaReport
  • As Cvs Health (CVS) Share Value Declined, Shareholder Security National Bank ...BZ Weekly
  • Lawsuit Claims CVS Charges More for Drugs Paid for With InsuranceNBC Chicago
  • Haverford Trust Co. Has $83.51 Million Stake in CVS Health Corporation (CVS)StockNewsTimes

This post first appeared on The 5th News, please read the originial post: here

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Amazon could probably upend drugstores, too


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