A Go-to-Market Strategy for Developing an On-Demand Delivery App
Sharing the same space & time, popular on-demand delivery services like Swiggy, Zomato, UberEats, Grofers, BigBasket, etc. have given the tech-savvy audience a faster, swifter, and reliable way to order their favorite products & services. From on demand food delivery business to medicine delivery startup, we have come a long way in such a short span of time.
In 2020, we may witness a sudden upsurge of such on-demand delivery services in sections distributed across various industries. Out of several of them, health and preventive care is a prominent sector for every individual living on earth.
Companies like NetMeds, Uber, 1mg, and many more have made medicine delivery at doorstep a regular affair in diverse locations, irrespective of rural or urban locale. People immediately need on-demand medicine delivery services for both acute & chronic requirements.
The global pharmaceutical market has experienced significant growth in recent years. As forecasted by Statista, for 2023, the global online pharmacy market size is pegged to grow at 1.6 trillion U.S. dollars. Again, a colossal figure conveys how the online pharmacy market is about to bring rapid changes the fortunes for entrepreneurs and online pharmacists.
Benefits of Using Online Medicine Delivery Apps
Keeping the customer at the focal point is pivotal for improving a business structure. Online customers ordering medicines benefit from a big list of advantages, including:
- Easy & quick ordering of medicines (for both chronic and preventive reasons) for doorstep delivery, which gives the maximum amount of convenience and trouble-free transaction.
- ePharmacy businesses introduce online medicine purchase discount for new and existing customers, passing on the benefits directly from the supplier/distributor/manufacturer.
- Automated medicine purchase or refill reminder is another prominent way of notifying the customers when they need to buy the fresh stock of medicines.
- Loyalty reward programs, expense analytics, a digital copy of prescriptions, etc. end up in the lucrative side of benefits for buying medicines online.
- Prescription-based medicine orders and evaluation by sellers add a second layer of protection and safety for consumers.
- Some leading pharmacy apps have introduced a measure of not directly (without supervision) delivering medicines to children or underage.
Business Opportunities for Online Medicine Delivery Startup
We understand the thirsty & nerve-wracking people with entrepreneurial spirit wanting to have a go in this sector for opening a rocking medicine delivery startup business. Here, we discuss those business opportunities for the aspirants that they can grab with both their hands.
The category of goods that medicines fall into never sees a downturn ever. People need medicines, regardless of their economic status or health-affluent bodies. The pharmacy sector derives the most profitable businesses if properly and effectively managed.
Through the help of an on-demand pharmacy delivery app, a startup glances at a plethora of opportunities for making the business profitable within a few months of inception. Besides, it pays off well for anyone who isn’t passionately favoring the idea of setting up an offline delivery store.
Entering a multi-billion industry shouldn’t scare you off. Since business opportunities are galore, especially within the scope and scale of an entrepreneur, this doable medicine delivery startup is supposed to fixate its goals of delivering high-quality medicines to customers at reasonable prices.
Building Crucial Pharmacy Partnerships for Onward Business Growth
When in pain or illness, customers seek immediate delivery of medicines. Can you personally visit each one of them? Can you pick hard-to-find medicines & OTC (Over-the-Counter) drugs for one basket at the same? Here, real-life problems hit hard for a delivery guy.
For a commission-based small startup, the pharmacy stores in your locality or region are key drivers of your business growth. Entering in the partnership with dependable pharmacy owners help you reap a promising development in the course of achieving levelheaded results.
From a large viewpoint, you require the partners in pharmaceutical companies and distributors for the supply of medicines that your ePharmacy would deliver to the customers. They are one of the key stakeholders in the online pharmacy business.
Online Medicine Delivery Startup Development Platforms
You may have a great plan out there, but we have some subtle suggestions to help you.
- Messenger Account for Online Orders
Countless suggestions may ask you to start a WhatsApp Business Account or Facebook Page for taking online orders and respond (deliver) accordingly. Frankly, we don’t recommend this kind of ‘online platform’ for doorstep medicine delivery at all. Apart from the complex challenges, you will be always at risk for one or more reasons. Even with some checks and balances, it isn’t an ideal recommendation at all.
- Online Pharmacy Website for Customers
Building a website seems a fair idea. Online visitors can search for the relevant medicines online and place orders for the same on a user-friendly, navigable, and secure website. You can add some reliable payment gateways on the website for online payment facilities, and options like COD (Cash on Delivery) remove the bottlenecks.
- Online Medicine Delivery App for Users
We can vouch for the idea that modern Smartphone or Tablet users prefer buying through an app rather than visiting a website. That doesn’t undermine the efficacy of websites in garnering traffic. Most apps are not happenstances for businesses like a few people understand.
With 3.5 Billion Smartphone users in 2020, it’s unforgivable to give up on a demography-based market or audience. Both regular and occasional buyers of pharmaceutical drugs, Ayurveda products, immunity strengthening products, etc. prefer buying through an app.
You can develop a mobile app by yourself (if you’re skilled at it) or hire a online medicine delivery app development company for their services. The latter is a practical and phenomenal idea for saving you from unnecessary hassle, inconvenience in business operations, and extraordinary costs.
Online Medicine Delivery Startup Business Revenue Model
Even assuming the enthusiasm in you for searching case studies of various online pharmacy businesses, we have a few gifts of wisdom to share.
A business runs successfully through the higher revenue collections and positive growth. Based on trouble-free research and quick access to information, we found these probable methods of earning revenues:
- Commission on sale of drugs or health products
- Sponsored listing, marketing, and advertisements
- Shipping or delivery charges
Popular businesses like Netmeds earned Rs. 4.46 Crores from commissions in FY18 and it is the largest contributor in its revenue model. As this company builds over its business, it has already thousands of Stock Keeping Units (SKUs) in various tier-2 and tier-3 cities, 12 fulfillment centers, and 13 warehouses. Meanwhile, they receive millions of USDs in funding from international investors.
Intrinsic & Extrinsic Challenges for Online Pharmacy Delivery Startup
With the glory, come the glaring challenges in the sector. Brightened and aspiring minds must take note of these challenges to ensure that their business doesn’t suffer hurdles of underlying operations like:
- Forgery or misuse of prescription for availing Schedule X Drugs, Psychotropic Drugs, etc.
- Illegal imposters selling duplicated or expired or adulterated medicines.
- Lack of adherence to Health Ministry Rules and Regulations.
- Poor data security and consumer management.
- Disputed medical history evaluation.
- Exorbitantly expensive prices of medicines in rural areas.
- Unregulated and illegal sale of medicines.
Even most of the vibrant economies face a miscellaneous range of challenges in this sector due to some corrupt business practices, unethical hoarding of medicines, incorrect pricing, and the list goes on an endless entourage.
However, not everything is dark and sundry, especially with the accurate application of advanced technology, centralized services, strong preventive and protective measures, specific regulations, and security checks. For instance, in the USA, reputed sites like Google, Yahoo, and Microsoft only permit online pharmacy companies accredited through VIPPS (Verified Internet Pharmacy Practice Sites) program for advertising.
Future Growth and Opportunities for Startups in On-demand Medicine Delivery Business
You reap what you sow – this is the best inspiring line ever for anyone who starts a business.
Growth at the financial level is discernibly desirable for startup aspirants, but that doesn’t suffice for rising in the long-term. As innovation and technology play a pivotal role in most of the industries these days, you are much likely to create out-of-the-box products for your consumers.
Some of the on-demand pharmacy delivery startups have partnered with pathological laboratories for sample pickup & collections and doorstep delivery of reports. An additional level of handiness elevates a brand’s image and reliability perception.
Elements and activities like pharmacy infrastructure, algorithms for data analysis, digital health records, customer buying patterns, etc. are some of the trendy incorporations in modern ePharmacy companies for harboring a sustainable growth in the future.
Go-to-Market Strategy for Developing an On-Demand Medicine Delivery App
On-demand apps make life easier by delivering products or services in emergency-like situations. Being an entrepreneur, you are responsible for identifying the needs for online medicine delivery app development for the customers in your area, locality, region, state, or country.
Some of the decisive features for medicine app development:
- Adding reliable pharmacies or pharmaceutical companies to the list of medicine providers for assured purchases by customers.
- Convenient and quick extraction of prescription reports for delivering medicines on or before time to the customers.
- Loyalty or rewards program for regular customers buying through the mobile app. Push notifications for app-users whenever a consumer-benefit program is introduced.
- Inexpensive yet trustworthy medicine alternatives for customers who regularly buy a particular brand of pharmaceutical drugs.
- Preventive healthcare suggestions in infographics or images, such as foods for immunity building, calorific values of different foods, lists of vitamin & nutrient-rich foods, etc.
- Professional advice from practicing doctors or healthcare providers. A messenger-like platform for doctoral consultations adds premium value to the application.
Conclusion & Remarks
Building a user-friendly, solid and secure medicine-buying app helps earning and retaining customers. Similarly, customer feedback and premium delivery services are critical to improve customer satisfaction.
Want to start your medicine delivery startup? Contact us quickly so that we can help you launch soon!
