How Brick & Mortar Pharmacy Chains Can Win in the Online Pharmacy Market

In recent years, the growth of e-commerce has disrupted a range of industries, and the pharmaceutical-retail sector is no exception. With the rise of online pharmacies, customers are increasingly looking for the convenience of being able to order their medicines online and at any time and have them delivered directly to their doorstep. 

This trend has been further accelerated by the Covid-19 pandemic, as more people have looked for alternatives to physical stores. This is particularly true for people who may have mobility issues or are unable to leave their homes easily, as well as for those who live in more remote areas where access to traditional pharmacies may be limited.

Online Pharmacy Market – Trends and Opportunities

According to a recent survey by McKinsey, around 70% of patients would be interested in using a pharmacy’s home delivery service if it was available, and almost 60% would be willing to pay for such a service. This trend is particularly prevalent among older patients and is likely to grow stronger in markets with aging populations. 

The market for online pharmacies is expected to continue to grow significantly in the coming years. While there are some challenges associated with this industry, such as the need for regulation and concerns over the authenticity of products sold online, overall, the growth prospects for online pharmacies look very promising. In fact, according to a recent report by Grand View Research, the global online pharmacy market is expected to grow by a CAGR of 16% from 2021 to 2028. 

One of the main reasons behind this growth is the increasing adoption of e-commerce and digital technologies. As more people become comfortable with shopping online, they are increasingly turning to online pharmacies for their healthcare needs. In addition, the rise of telemedicine and virtual consultations is also driving the growth of online pharmacies, as doctors are increasingly prescribing medications online, making it easier for patients to order their medicines online.

Exploring the Online Pharmacy Business Landscape 

Interestingly, it has been new players that have been leading the way in the online pharmacy industry rather than established brick-and-mortar pharmacy chains. While traditional pharmacy chains are certainly not absent from the online space, they are facing increasing competition from a range of new players, including startups and online retailers.

One of the key advantages that these new players have is their agility and ability to innovate. Unlike established pharmacy chains, which may be limited by legacy systems and processes, these new players are able to build their businesses from the ground up, using the latest technologies and digital tools. This has allowed them to offer innovative services, such as AI-powered chatbots, personalized medication management apps, and a superior delivery experience, which can help to differentiate them from traditional pharmacy chains.

While the rise of online pharmacies presents significant opportunities for new players, it also poses a number of challenges for traditional brick-and-mortar pharmacy chains. For one, they are facing increasing competition from online players, who are often able to offer lower prices and more convenient services. Additionally, the shift towards online pharmacies is also affecting the demand for physical stores, with some industry experts predicting that traditional pharmacy chains may need to reduce their store footprint in the coming years.

What’s Next?

However, physical pharmacy chains still have a significant role to play in the industry. One of the key advantages that brick-and-mortar pharmacy chains have is their brand equity and the trust that customers have in their established reputation. Additionally, many pharmacy chains already have an existing network of physical stores with inventory, as well as long-standing relationships with pharmaceutical manufacturers. 

This can translate to better deals on medication, which can be passed on to customers. By leveraging these advantages, pharmacy chains can quickly and effectively expand into the online pharmacy space. By offering these services, brick-and-mortar pharmacies can not only meet the changing needs and expectations of their customers but also expand their reach and customer base.

Of course, one of the biggest challenges associated with online pharmacy delivery is logistics management, particularly as the volume of deliveries increases. Last-mile costs can prove prohibitive for profitability. As online orders continue to grow, pharmacy chains will need to ensure that they can manage their delivery operations effectively and efficiently. 

This is where a logistics management system like Shipsy can be incredibly helpful. Shipsy’s SaaS last-mile delivery management solution can help pharmacies optimize, automate, track, and simplify their logistics operations. 

For pharmacies, this means that they can manage home deliveries more efficiently, ensuring cost efficiency, quick delivery times, and a consistently good customer experience. The software provides real-time tracking and monitoring of delivery vehicles, allowing pharmacies to keep customers updated on the status of their deliveries. Additionally, the software can help pharmacies optimize their delivery routes, reducing delivery times and ensuring that deliveries are made on time. To handle surge volumes or for retailers without their own fleet the platform allows a unified management of logistics service providers. Shipsy has already helped pharmacies in the South Asia and Middle-East regions reduce last-mile delivery costs by up to 40% and increase SLA adherence rate by more than 20%. Watch this video to find out more about how Shipsy helped a pharmacy & healthcare retailer in India achieve such results.