Investors have Misdiagnosed Amazon’s Push into the Pharmacy Business

It is a drawback in the investment business that every businessman has some suspicion related to Amazon .com. The common question under consideration is that what will be the prospects of Amazon ’s entrance in the pharmacy business. As this question is almost unanswered by investors that is why Amazon is kept away from retail pharmacies.

There are certain assumptions that stepping of Amazon in the pharmacy online business will not imply any effect on the drug industry. According to a research USA spends $450 billion annually in drug business and there are some drug business tycoons like Walmart and Walgreens who earn a great revenue per year will never be affected by the entrance of Amazon in this industry as their annual business is above $70 billion.

But the truth is that Amazon is always taken non-seriously by the business giants like ten years ago Alphabet , Alphabet and others had taken Amazon for granted and did not consider its entrance in to cloud hosting as anything important but with the passage of time they regretted taking Amazon non-seriously when it has made a prominent share in the market.

Recently Walgreens’ is running a very impressive business with sales above 75% where it earns $7 billion through pharmacy business while $3 million sales belong to front-end. Similarly, its sales in the retail business are increasing approximate $1000 per square foot. Currently Walgreens is opening medical clinics and LabCorp LH, -1.73% into their retail stores.