Amazon discontinued plans to distribute medical supplies to hospitals, as reported in CNBC, citing several challenges in entering the pharmaceutical supply space.
Firstly, they have been unable to convince large hospitals to do away with middlemen as they prefer more traditional purchasing processes.
Secondly, Amazon faces challenges of building a logistics system that is tightly controlled and able to handle temperature-sensitive products.
Lastly, Amazon lacks products considered high risk such as class III devices (like a pacemaker) which are to be implanted within a body. These reasons account for Amazon’s failure in entering the pharma-space market.