Online pharmacies struggle to convert orders into sales

1. Online Pharmacies Struggle to
Convert Orders into Sales
On average, half the orders received
get rejected because of prescription-
related errors
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2. Contd...
• Indian online pharmacy startups chasing an al most $1-billion
market are struggling to convert orders in to sales. The hitch?
Customers aren't providing proper drug prescriptions.On average,
half the orders re ceived by online pharmacies get rejected because
of pre scription-related errors. The startups, already facing opposi
tion from offline chemists and under the scrutiny of regula tors, are
now spending a large chunk of their investments on improving
patient awareness of proper prescriptions.
• “Indians are used to buying medicines without prescriptions and
online pharmacies are the most law-abiding firms.On our website,
you cannot view a medicine unless you upload the prescription,“
said Rajiv Gulati, cofounder of New Delhi-based Mchemist, an
online pharmacy startup.
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3. Contd...
• Gulati said the rejection rate of orders reached almost 30%
at his company a few months ago because of prescriptions
that were dated or did not carry the doctor's credentials.
• “Chronic patients are hesitant to go back to doctors
because they have to pay for the consultation fee,“ said
Hemant Bhardwaj, CEO of Zigy, an online medicine seller
that has cancelled as much as 80% of its orders due to
invalid prescriptions. “Because of this, they end up going to
their neighbouring pharmacy stores.“
• Some startups are now going the extra mile to attract
custom ers by not only helping to fix appointments with
doctors on their platform, but also paying consultation fees
for needy patients.
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4. Contd...
• Dharmil Sheth, one of the founders of PharmEasy , had customers
who sent pic tures of medicines they wanted.“One of the most
common trends that we have seen is people sending images of
their tablet strips or syrup bottles or at times writ ing down their
requirements on a piece of paper and uploading it.Those ones lead
to instant rejection,“ he said.
• Every state Food and Drug Administration has specific guidelines for
prescriptions. The Maharashtra FDA requires prescriptions to
mention the date, doctor's name, address, registration number,
dosage and duration of medication, among other things.
• Customers purchasing medicines from local chemist stores often
don't follow such an exhaustive list of requirements.Online
pharmacies say they have to be extra cautious with the rules. FDAs
across the country still haven't warmed up to the idea of selling
medicines online because of the many regulatory issues involved.
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