Medicine Price Comparison

Brick-and-mortar pharmacies that want to survive in the market in the long term must catch up digitally. There are a number of indicators and good reasons for this. But best of all: sophisticated technology that paves the way for greater digitalisation in medicine price comparison is already available!

Prescription-only medicines (subject to price controls) account for over 80 per cent of the German pharmacy market. Conversely, this means that just under 20 per cent are freely available. When in doubt, price, availability and speed of delivery determine where people choose to buy their medicines. With the introduction of e-prescriptions, high-street pharmacies are losing yet another unique selling point. Experience from the changing landscape of the specialist and retail sectors shows that embracing greater digitalisation means benefiting from market transparency through smart technology!

Amazon Pharmacy is no longer just a vision. Since November 2020, the online giant has been selling over-the-counter medicines in the US under that very brand name. The Amazon Pharmacy brand has now also been registered in the EU. It is certainly no coincidence that the Amazon Alexa home assistant in Germany can already detect when someone in the house is coughing. The digital reach into the healthcare market is evident.

No specific date has yet been announced as to when Amazon will launch its Pharmacy service on the German market, but given its success in the US and the interest shown by German customers, it is only a matter of time.

Availability, free delivery, price, reputation, loyalty … There are many reasons why one end customer might choose a high-street pharmacy whilst another prefers an online competitor. However, comparing medicine prices – particularly for patients on long-term medication – is, in most cases, the starting point of the decision-making process. Consequently, every pharmacy should, as a matter of principle, be aware of the daily updated market prices for over-the-counter and popular medicinal products, such as Ratiopharm nasal spray or Voltaren pain relief gel, in order to remain competitive in the long term.

In theory, all market players possess the necessary expertise to identify opportunities in the impending changes and position themselves strategically. Online-only pharmacies are in a particularly strong position due to standardised workflows and optimised dispatch processes, especially when it comes to over-the-counter medicines. In contrast, local high-street pharmacies generally enjoy high brand recognition and a strong reputation. 

In the specialist and retail sectors, many businesses have now learnt that customers do not focus exclusively on price. Price is important, as customers compare prices and want to save money, but convenience and the simplicity of the purchasing process can also be decisive factors. If a packet of tablets can be ordered easily from the comfort of the sofa, and delivery is not absolutely time-sensitive, why would the customer still want to drive to the nearest pharmacy?

To a certain extent, every pharmacy has a say in the direction it takes. However, the fact that more and more customers are buying their over-the-counter (and, in future, probably also their prescription) medicines online cannot be ignored. Some see so-called online platforms, which bring high-street pharmacies and patients together, as the saviour. The downsides: part of the profit margin goes into the pockets of the platform providers, and price pressure is mounting. Others are focusing on strategies based on expert advice, proximity to walk-in customers and a certain level of loyalty, which they receive primarily from those who are sceptical of online retailers and Amazon.