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Amazon (NASDAQ:AMZN) Looks to Expand Into Yet Another Industry


Amazon.com, Inc. (NASDAQ:AMZN) made another big splash last week as it announced that it would be purchasing PillPack for about $1 billion. PillPack is an online pharmacy that not only gives Amazon customers another item to throw into their shopping carts, but it gives the company an entry into one of the most lucrative industries in the U.S.

Now, this doesn’t mean that we’ll start seeing Amazon-branded pills anytime soon, but it wouldn’t be surprising to see medication being available on the online merchant’s website. Amazon already purchased Whole Goods and has a presence in retail and grocery stores, so expanding into medication seems like a logical, and complimentary move for the company. PillPack already offers a service that will sort your medication and deliver it to your door.

Amazon already does home delivery well, and throwing in some of your prescriptions into the mix is another way that the company can simplify your purchasing process. It could also lead to some interesting suggestions, perhaps offering heartburn medication for a consumer that recently purchased some spicy food. Or perhaps through Amazon’s Alexa you could tell the device your symptoms and it could have medication right to your door by the next day.

Maybe that’s a bit of a stretch. But then again, there’s so few people that know you as well as Amazon does.

For just $1 billion, this is a drop in the bucket for a company with the resources that Amazon has, and PillPack will be a great way for the tech giant to further expand its offerings with ease, while also finding another way to take Walmart Inc (NYSE:WMT) head-on. The good news for consumers is that it could fuel more competition among these rivals, and that could mean better products and services at more competitive prices.


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