By Martin Heubel, Amazon Strategy Consultant at Consulterce
Amazon Prime members in the US on Medicare can now access over 60 prescription medications for just $5 a month.
For those who don’t know, Amazon’s RxPass launched in 2023 as a subscription service to help Prime members save time and money on their prescription purchases.
With this latest development, Amazon enables more than 50m Medicare users to access free and fast shipping by joining Amazon Prime.
So what are the key implications?
- Amazon expands its addressable market in the healthcare sector (>10,000 baby boomers age into the Medicare-eligible population every day!).
- Expanding RxPass increases the attractiveness for Medicare users to sign up for Prime. This allows Amazon to gain insights into the medical needs of its Prime users, which it can use to develop new services or retargeting campaigns.
- The healthcare market is one of Amazon’s big bets for increasing future sales and operating income. Expanding RxPass to Medicare users allows Amazon to reach more eligible customers, boosting its CLV and earnings potential.
NAM Implications:
- Think what Amazon could do to the UK healthcare provision vs Boots….
