Amazon is on the healthcare industry's doorstep. The e-commerce giant continues to transform virtually every segment of the economy as it leverages its massive distribution network to deliver logistical harmony. With a stronghold on the consumer market, Amazon is eying the business-to-business segment as it builds its seller base. Soon, that familiar smiling brown box will make its way from porches to providers' front doors and that may make for some disgruntled medical supply distributors.
Since launching two years ago, more than 45,000 sellers have signed on to the Amazon Business platform, which essentially serves as the middleman for third-party vendors. The platform offers business pricing and quantity discounts on more than 5 million products, potential sales tax exemptions, same-day shipping and free two-day shipping for purchases over $49. Large organizations can integrate Amazon Business into their purchasing systems and directly transfer data to streamline processing.
Amazon Business, which generated $1 billion in sales in its first year, is one of its important areas for growth, executives said in earnings calls.
"Amazon Business combines the selection, convenience and value customers have come to know and love from Amazon, with new features and unique benefits tailored to the needs of businesses," Chris Holt, leader of global healthcare at Amazon, said in a statement.