The Projected Condition of Healthcare E-commerce in 2020

The healthcare industry invested $32 billion on e-commerce and web services in a year. But, do you know what will be the projected condition of healthcare eCommerce in 2020? Look at this presentation to gain more insights: https://bit.ly/2DXLVxj

Transcript

1. THE PROJECTED CONDITION OF HEALTHCARE ECOMMERCE IN 2020
2. INTRODUCTION There has been significant growth in the eCommerce industry, and it has affected all industries, including the healthcare sector. In fact, as per Goldman Sachs, the healthcare industry is prepared to spend around $32 billion on e-commerce and web services technology annually. Considering the growing desire for convenience and industry growth, there is a vast opportunity for healthcare companies breaking into the eCommerce business.
3. Reports say that consumer spending on medical equipment such as hearing aids and eyeglasses has reached $48.5 billion, which is up by 4% compared to the previous year. Hence, we can see that eCommerce has found its roots in the healthcare industry, and the same is growing as the industry progresses forward.
4. THE STATE OF HEALTHCARE The US healthcare market is a $3.2 trillion system that consists of many different segments like insurance companies, hospitals and health systems, pharmacies, and more. Today, the market of healthcare services and products is proving to be a gateway for many pharmacy retail chains like CVS, Walgreens, and Amazon. These businesses are taking their eCommerce services and transforming them into digital delivery platforms that offer consumers a wide range of services.
5. ROLE OF E-COMMERCE IN THE HEALTHCARE SECTOR
6. eCommerce is riding the wave of growth in the healthcare sector and this is because of increased internet penetration and use of mobile applications. An example of this is a recently launched online eCommerce platform selling elderly medical products. It provides a wide range of products like wheelchairs and walking aids, hence, making healthcare more accessible to patients all around the world.
7. A caregiver often has to visit the convenience store to restock the depleting medical supplies for the patient. Buying the same online has various advantages:
8. VARIOUS ADVANTAGES OF ONLINE BUYING: When buying medical supplies online, you do not have to worry about physically visiting the store and spending on transport. The same can be ordered online and delivered at your doorstep. Additionally, most online stores operate 24 hours a day. Hence, you can place your order at any time throughout the day. CONVENIENCE
9. While buying medical supplies, you usually have to go through various medical stores looking for different products. The online market provides you a wide range of products that you can choose from. You can compare the reviews and prices of different products and make an informed decision while buying a product that suits your requirements. MANY PRODUCTS TO CHOOSE FROM
10. As compared to the physical stores, online prices are more transparent as the consumers can compare across a large range of sellers. Online platforms also frequently offer special deals, discounts, and f ee delivery services which adds to the convenience and shopping experience of the consumer. LOWER PRICES AND DISCOUNTS
11. Stats say that global health care spending is projected to increase at an annual rate of 5.4% in 2018– 2022, a considerable rise from 2.9% in 2013–2017. (SOURCE) Growth of eCommerce industry for 2019, 2020, and 2021 is expected to hit 21.5%, 19.8%, and 18%, respectively. (SOURCE) STATISTICS CONCERNING HEALTHCARE E-COMMERCE IN 2020
12. STATISTICS CONCERNING HEALTHCARE E-COMMERCE IN 2020 The healthcare eCommerce market is growing annually at the rate of 16%. Annual combined growth rate of the 25 biggest online healthcare merchants is 18%. (SOURCE) Amazon is growing its healthcare ecommerce business each year by 33%. (SOURCE) 94% of healthcare patients use online reviews to evaluate providers. (SOURCE) (SOURCE)
13. The Possible Pain Points of the Healthcare eCommerce Industry in the Coming Years
14. There are various challenges that a healthcare e-commerce company faces in the pursuit of growth. Let us discuss a few in detail:
15. SECURITY Healthcare companies must adhere to the HIPAA regulations when it comes to the patients as the companies are tied to compliance. This implies that healthcare companies have to make sure that all the medical information concerning patients remains secure, private, and encrypted at all times. The healthcare companies try to achieve the same with their utmost effort, and this somewhere becomes a challenge for the healthcare e- commerce industry. HIPAA
16. TIME SENSITIVITY If a delivery is missed in the retail sector, it most probably would not be a life or death situation. However, in healthcare, it can very well be the case. There are situations where a patient is depending on the vendor for delivering a time-sensitive medication or a much needed medical device on time. Here, it is important for the vendor to make sure that the required medical aid reaches the patient on time.
17. Hence, the healthcare companies that are creating an e-commerce structure must realize that reliability and consistency are among the top requirements for shipping and receiving medications and other healthcare supplies. The healthcare e- commerce company needs to show optimum efficiency and punctuality in this regard, as is required in this scenario.
18. COMPLIANCE Compliance is a critical thing to check for a healthcare company before setting up an e-commerce system. It should be ensured that the company is compliant with the carriers they are utilizing for deliveries. In most situations, medications and medical devices require a signature upon delivery. So, checking the carrier’s frequently changing requirements and related protocols is a must. Another concern is maintaining compliance with the FDA regulations related to shipping records.
19. DANGEROUS/HAZMAT GOODS COMPLIANCE Shipping the radioactive and hazardous materials and automating the complicated paperwork of the same is quite a challenge for some companies in the healthcare sector. It is imperative for hazmat compliance to improve productivity, avoid fines and returned shipments, all while lowering costs. The healthcare e-commerce company dealing with such hazardous materials should be ready to face these compliance challenges while structuring themselves in the market.
20. CHECKING REPORTING & VISIBILITY If you want to build up a strong structure in the market and be successful in eCommerce, you need to have a good customer service strategy. this regard. Customers require transparency and updates on when their orders will be delivered, especially those who order time- sensitive items. Not only that, but transparency and visibility into the service quality of your carriers is required by your own team and notifications of delivery incidents/exceptions are also needed to be monitored. Healthcare Data Management is crucial in
21. BUSINESS RULES Accuracy in shipping and delivering the products is something that the healthcare companies strive to achieve. To ensure that their products are shipped the right way, many healthcare companies need to have custom business rules in place. For example, sometimes the products to be shipped need temperature-controlled environment, or some products can only travel specific expedited services. Hence, building, updating, and managing these complex business rules can be a challenging task for healthcare e-commerce companies.
22. HEALTHCARE E-COMMERCE: THE NEXT BIG THING "Digitization in healthcare sector is anticipated to boost the growth of healthcare e-commerce market by 15.8% CAGR by 2025. North America was valued as the dominant region in the global market during forecast period." (Source)
23. Though this generates some difficulties as the health care providers need to guarantee that their products reach on time and that their suppliers comply with the laws, the concept of healthcare e- commerce is advantageous as a whole. It ensures that healthcare companies can provide better quality care for their patients by enabling more patient focus and less concentration on supply problems. There has been a notable development in the healthcare e-commerce industry in the past few years and the same is expected to continue in the coming years. Enabling direct orders and delivery of medical supplies, the manufacturers of medical devices and other supplies are increasingly moving to online platforms.
24. CONCLUSION The landscape of healthcare is transformed by e-commerce, and it is important for healthcare providers to understand the implications of this transformation. Like any new technology, integration of e-commerce in healthcare is an undeniably positive force, but one that must be harnessed with innovative and careful thinking.
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