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Healthcare Ecommerce Trends Overview

The digital age has shifted how weÌýdoÌýbusiness inÌýmany ways, ²¹²Ô»åÌýecommerce has been aÌýmassive part. Many industries have moved toÌýecommerce, with others trailing behind inÌýcomparison. One such industry that has held back toÌýsome degree inÌýecommerce has been healthcare.

There are multiple reasons forÌýthis, but largely because itÌýhas begun toÌýchange rapidly. InÌýfact, according toÌýaÌý, theÌýhealthcare ecommerce market isÌýexpected toÌýgrow toÌý$732.3Ìýbillion byÌý2027.

Numerous factors are contributing toÌýtheÌýrise ofÌýhealthcare ecommerce, including Amazon joining theÌýspace, business-to-business (B2B) demands, medical supplies, ²¹²Ô»åÌýdependence onÌýtheÌýlegacy supply chain model. Let’s take aÌýlook atÌýsome ofÌýtheÌýchanging ecommerce trends inÌýhealthcare.

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Embracing Direct toÌýConsumer Models Over Legacy Ecommerce Trends inÌýHealthcare

For decades, healthcare supplier models have typically relied upon distributors ²¹²Ô»åÌýhuman sales reps, with 73% ofÌýhealth systems ²¹²Ô»åÌýhospitals still using this model.

This model leads toÌýadditional costs forÌýsuppliers ²¹²Ô»åÌýhealthcare institutions, ²¹²Ô»åÌýthis trickles down toÌýend customers asÌýwell. Large suppliers are equipped toÌýhandle this additional cost, making itÌýaÌýmanageable model. However, forÌýsmaller healthcare institutions, these costs are much more impactful ²¹²Ô»åÌýunsustainable.

These additional costs make upÌý22-24% ofÌýtotal expenses forÌýmany hospitals ²¹²Ô»åÌýhealth systems. Furthermore, these additional costs are sometimes offset byÌýincreased costs toÌýend customers.

The massive gap between supply ²¹²Ô»åÌýdemand ofÌýtheÌýcurrent model has led toÌýaÌýfurther desire forÌýfurther direct-to-consumer (D2C) medical ecommerce. There isÌýstill uncertainty asÌýtoÌýtheÌýproper implementation ²¹²Ô»åÌýmethod ofÌýsuccess inÌýthis direction, but future-ready ²¹²Ô»åÌýdata-centric methods will help toÌýpromote this direction.

Barriers toÌýaÌýBlossoming Healthcare Ecommerce Platform

AnÌýincrease inÌýtheÌýprevalence ofÌýhealthcare ecommerce platforms would beÌýbeneficial inÌýseveral ways, but there are still many barriers.

Firstly, healthcare ecommerce isÌýunder strict cybersecurity laws ²¹²Ô»åÌýregulations. Any healthcare ecommerce platform must have sophisticated ²¹²Ô»åÌýresilient cybersecurity infrastructure.

This will limit theÌýgrowth ofÌýthis market over theÌýcoming years. However, this isÌýunderstandable, asÌýitÌýisÌýmeant toÌýprotect theÌýsensitive data ²¹²Ô»åÌýpatients within theÌýhealthcare industry.

Amazon Will Continue Moving into theÌýEcommerce Space

Amazon isÌýnoÌýstranger toÌýtheÌýecommerce ²¹²Ô»åÌýeHealth space. They have been running aÌýnumber ofÌýprojects within theÌýhealthcare space.

InÌý2019, Amazon with several healthcare-related skills. This includes relaying ²¹²Ô»åÌýmonitoring blood sugar data, informing users ofÌýpost-op doctor instructions, providing prescription delivery updates, ²¹²Ô»åÌýhelping schedule doctor appointments.

The team involved inÌýthis project had worked hard toÌýobtain HIPAA compliance byÌýequipping their tech with multiple layers ofÌýsecurity, including access controls, encryption, ²¹²Ô»åÌýsecure storage within their own cloud services.

They have also been working onÌýsome more longshot projects since 2014ÌýinÌýaÌýsecretive lab, including using AIÌýtoÌýassist inÌýcancer prevention ²¹²Ô»åÌýtreatment. The name ofÌýthis lab varies depending onÌýwho isÌýasked, asÌýitÌýhas been called 1492, Amazon X,Ìý²¹²Ô»åÌýThe Amazon Grand Challenge.

InÌý2019, theÌýonline giant also purchased PillPack, aÌýpharmacy startup that ships prescriptions directly toÌýpatient’s doors. Furthermore, Amazon has been selling medical supplies toÌýmedical professionals ²¹²Ô»åÌýhospitals forÌýseveral years.

These are certainly ambitious goals, but Amazon has aÌýlarge enough tech presence forÌýitÌýtoÌýbeÌýbelievable, whether sooner orÌýlater. AsÌýhealthcare ecommerce continues toÌýexpand, Amazon isÌýexpected toÌýcontinue toÌýgain traffic within theÌýindustry. This isÌýespecially true since they’ve already partnered inÌýtheÌýpast with many other industry giants, such asÌýJPÌýMorgan Chase ²¹²Ô»åÌýBerkshire Hathaway.

Business-to-Business Healthcare Buying Shifting Online

B2B healthcare suppliers are tending more toward researching ²¹²Ô»åÌýpurchasing online before reaching out toÌýsales reps.

According toÌýaÌýreport from titled “How Hospital Administrators Make Purchase Decisions,” over 90% ofÌýhealthcare equipment buyers are researching ²¹²Ô»åÌýidentifying suppliers online first. These changes mark aÌýsignificant shift inÌýmoving away from traditional models, ²¹²Ô»åÌýthis isÌýlikely toÌýcontinue.

Furthermore, medical supplies businesses are looking toÌýecommerce platforms toÌýmeet needs, reduce overheads, ²¹²Ô»åÌýimprove client satisfaction. Part ofÌýthis solution will beÌýleaning toward aÌýD2C model, asÌýmentioned above.

Looking toÌýLaunch aÌýHealthcare Ecommerce Website?

IfÌýyou want toÌýtake your business into theÌýecommerce space, weÌýcan help here atÌýºÚÁÏÃÅ. WeÌýdesigned our platform toÌýmake itÌýeasy toÌýlaunch your ecommerce store inÌýnoÌýtime, ²¹²Ô»åÌýyou can even get started forÌýfree.

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About The Author
Max has been working in the ecommerce industry for the last six years helping brands to establish and level-up content marketing and SEO. Despite that, he has experience with entrepreneurship. He is a fiction writer in his free time.

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