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E-Pharmacy is the new wave in Indian eCommerce

Recurring medicine demand and Zomato-style delivery can unlock scale for e-pharmacy in tier 1 and 2 towns, with ecommerce consulting India.

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In Short

E-Pharmacy is the next wave in Indian eCommerce, driven by recurring medicine demand, rising internet use, and a delivery model that can mirror food and grocery commerce. The article positions the category as still early in India, but structurally ready for scale because medicines are not a one-time purchase. Research cited from Chitrangana’s survey says more than 60% of internet users in Germany buy medication online, while the Indian market has only a few pharmacy outlets with websites and home delivery.

Over the past decade, the Indian eCommerce industry has evolved from an online book store to a full-fledged convenience store where a consumer can order just about anything under the sun. And now, the next wave in industry is E-Pharmacy, which is expected to gain 8% market share by the end of 2020.

According to a recent survey by Research wing of Chitrangana, more than 60% Internet users in Germany buy medication online. In India, a few pharmacy outlets have already set up websites providing home delivery services. However, they are still a long way from competing with portals dealing with food, groceries or garments.

Chitrangana.com, India’s leading eCommerce consultancy, believes the potential of the E-Pharmacy industry is untapped, especially since medicines are a recurring requirement for the average consumer. Since recurring orders will be in the top list, the user base will cover more than 14% market share of the total pharmacy business, especially in tier 1 and tier 2 towns.

Ideally, online pharmacy portals need to be able to provide services similar to local restaurants that depend on a third party for swift delivery. The likes of Zomato and Swiggy deliver from restaurant to doorstep, a model that can work just as effectively for a local pharmacy store. Mr Nitin Lodha, Senior eCommerce consultant & Principal consultant for one of leading (first) ePharmacy startup, believes such a business model has very high potential and has encouraged start-ups to venture in the same. Mr Lodha, who is early learner of Artificial Intelligence believes a strong close integration of Data mining for consumer behaviour, pharmaceutical data, demographical patterns, drug/ pharmaceutical salts can build a game changing model in near future.

As mentioned before, several pharmacy outlets are already operating portals in metro cities. However, the E-Pharmacy industry has yet to make inroads into semi-metros, towns and smaller cities. The implementation of such a business model is required for masses. It will also facilitate an offline retailer to manger their retailer counter.

It’s important to note that data procured from the E-Pharmacy industry can be used in Data Mining and Artificial Intelligence, to find real time trends of medicine demands and various decision-making process of various departments.

In Oct. 2017, the Indian Govt. offered a proposal to regulate sale of medicines through online pharmacies. However, it was strongly opposed by chemists on the grounds that online sales are illegal. They also felt that easy availability of medicines can lead to their misuse and possible re-sale.

While as ePharmacy looks potential business model in India, the government’s proposal to regulate the market will give a stamp of official approval and remove uncertainties surrounding the legality of such sales.

A year ago, Reliance Jio made the ‘JioHealthHub’ health and fitness app live for its users. The mobile app reportedly allows users to upload health and medical data to maintain a profile, view health charts and order medicines online, among other features. Will others follow Reliance Jio and follow suit?

Related Insights

Frequently asked

How does E-Pharmacy differ from food or grocery eCommerce?
E-Pharmacy differs because demand is recurring and tied to medicine availability, not discretionary purchase patterns. The article suggests the delivery model can mirror food delivery, but the operating logic is stricter because medicines carry legality, misuse, and resale concerns.
Why does the article treat recurring orders as the core driver?
Recurring orders matter because medicines are described as a repeated need for the average consumer. That gives E-Pharmacy a stable demand base and allows the user base to form a meaningful share of the pharmacy market, especially in tier 1 and tier 2 towns.
What market signals in the article suggest the category is early but viable?
The article points to a few pharmacy outlets already running websites and home delivery in India, while noting that they still lag behind food and garment platforms. That combination signals early adoption without broad market saturation.
Why does the article cite Germany in a discussion about India?
Germany is used as a reference point for consumer behavior, not as a direct market comparison. The article cites a survey saying more than 60% of internet users in Germany buy medication online, which shows that online medicine purchase can become normal in a mature digital market.
What role does third-party delivery play in the model?
The article frames third-party delivery as the operating bridge between the pharmacy and the consumer. It compares the model to Zomato and Swiggy, where delivery is separated from the point of sale and handled as a distinct execution layer.
When does the E-Pharmacy model not apply well?
The article implies the model is weaker where delivery reach is limited, especially in semi-metros, towns, and smaller cities that the industry has not yet penetrated. It also does not work cleanly when legal uncertainty or concerns about misuse remain unresolved.
What is the significance of tier 1 and tier 2 towns in the article?
Tier 1 and tier 2 towns are presented as the main expansion zones for the category. The article says recurring orders could cover more than 14% of the total pharmacy business there, which makes these markets central to scale.
How does regulation change the business case for online pharmacies?
Regulation changes the business case by converting uncertainty into official permission. The article says the Indian government’s proposal to regulate online pharmacy sales would give a stamp of approval and remove doubts about legality.
What objections do chemists raise against online medicine sales?
Chemists oppose the model on two grounds in the article: they say online sales are illegal, and they argue that easier access can lead to misuse and possible resale. These objections focus on control, compliance, and downstream risk.
How can data mining and artificial intelligence change E-Pharmacy operations?
The article says E-Pharmacy data can feed data mining and artificial intelligence to identify real-time medicine demand and decision patterns across departments. It also mentions consumer behavior, pharmaceutical data, demographic patterns, and drug or pharmaceutical salts as inputs for a stronger model.
What is the article’s view on combining pharmacy commerce with AI?
The article treats AI as an architecture layer, not a gimmick. It says close integration of data mining, consumer behavior, pharmaceutical data, and demographic patterns can produce a game-changing model in the near future.
What does the article say about metro cities versus smaller markets?
Metro cities already have several pharmacy portals operating, but the article says the industry has not yet made meaningful inroads into semi-metros, towns, and smaller cities. That gap matters because the model is presented as something meant for mass adoption, not only urban convenience.
What does Reliance Jio’s JioHealthHub example imply?
The article uses JioHealthHub as a signal that larger digital players may enter the space. It says the app reportedly lets users upload health and medical data, view health charts, and order medicines online, which suggests the category can connect health records and commerce.
What business model does the article imply for local pharmacies?
The article suggests local pharmacy stores can operate with a delivery structure similar to restaurants using a third party. That model allows the retailer counter to remain in place while delivery and online ordering become a separate commerce layer.
What is the main barrier between potential and scale in E-Pharmacy?
The main barrier is not consumer need; it is execution under structure. The article points to delivery capability, market reach, regulation, and data use as the four conditions that determine whether the category moves from potential to scale.

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