Netmeds Business Model: How Does It Make Money & Achieved Success So Early?
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- April 25, 2023 Last Updated: June 29, 2023
Technology develops daily, making people’s life more comfortable and simple. Nowadays, consumers can order online and avoid long queues while lounging in their homes. Orders will be delivered to customers at their doorsteps within a certain time frame. On-demand medicine delivery programs have also made people’s life easier by sending critical prescriptions directly to their homes. Thanks to the advanced technology of the Netmeds Business Model, consumers may now monitor patient health data online, automate the management of medicines in supply chains, and access tools to evaluate the effectiveness and security of previously taken medications.
Apps have played a significant role in linking massive consumer bases and improving user experience. With just a few taps on a smartphone, almost anything is now accessible in the digital era. Our quest for instant gratification, even for non-urgent things, has surely increased as a result of the availability of on-demand delivery services. But what about the circumstances where something must be done right away? Shouldn’t we be able to reach them right away? We can all agree that medicine is one of the most important things that we periodically all need. Particularly a patient with a critical illness who needs it right away. However, buying medicines is a highly challenging task due to the increased demand. Let’s here explore the most popular – Netmeds Business Model.
What is Netmeds and Business Model?
The E-commerce business has been operational for some time, but only recently has it started to gain prominence. The current generation has found this alluring. One such top pharmacy brand is Netmeds! It covers a wide range of healthcare commodities, including OTC pharmacy, prescription medicines, Ayurvedic medicines, homeopathic medicines, and general healthcare supplies. Online medicines sales are available from Netmeds for both OTC and prescription medicines. Customers upload their prescriptions while placing an order online, and the organization’s licensed pharmacists then review each one.
Several companies have partnered with Netmeds to ensure easy access to all the products. The medical goods that Netmeds sells come from more than 200 sources. Under the Netmeds business model, the company’s stocks are closely monitored to avoid any wastage. They are aware that there are fluctuations in the pharmaceutical industry, particularly as a result of weather changes and different ailments. A data analytics method is used by the Netmeds business model to predict future medicines demand and using this strategy, Netmeds is able to effectively manage its inventory and provide people who require the appropriate medications with access to them.
The distribution system for Netmeds’ business model has been carefully constructed and has networks. Although their speedy delivery depends on the customer’s region the app’s intuitive layout is what makes it so easy. The company keeps a digital copy of each customer’s prescription and a list of all the orders they’ve ever placed. The subsequent orders are now easier to place as a result. They take advantage of numerous stockpiles spread across the country to make it simple to obtain these prescriptions. B2B business strategies help the company expand. They want to offer inexpensive wholesale deliveries of medicines and other medical supplies to independent pharmacies.
How Netmeds Work: the Beginning and Initial Challenges!
Netmeds was founded by Dadha & Company. The family, therefore, left a significant legacy that lasted for many years. The Netmeds business strategy was developed when the developer looked into internet sales initiatives to expand his family business. While analyzing the possibility of using online pharmacies to sell medication, he came up with the idea for Netmeds. As more people began to believe in the internet platform’s business plan, orders began to flow in. One of the more impressive aspects of Netmeds was the uncomplicated app layout. The first step is to look up the required medication using the search bar. The next step is to add the medication to the cart. Third, if you purchase the medication as instructed, you have the option of submitting the prescription. Additionally, Netmeds provides a diagnostic service so consumers can access expert medical counsel.
In 2010, when the Netmeds business model was unveiled, clients found themselves in an unusual predicament. Most people depended on the medical professionals they were already familiar with. It was challenging to convince them to order their prescriptions online. The majority of clients did not even consider using a technique other than the conventional ones to make a purchase for their healthcare needs. Because of this, all online pharmacies need to have enough stock to fulfill every request from their clients. The time you had to collect and deliver the medicines was limited. There were no cases of self-medication or the distribution of harmful pharmaceuticals as the method used to examine the prescriptions was accurate. This advised people to see a doctor before buying medicines.
Journey Towards a Better Revenue Model
On Netmeds, you can find a wide range of medicines, including generics, ayurveda, homeopathic, and other medicines. Netmeds is produced by Dadha & Company, a medical business with 100 years of excellence and experience. The parent company of Netmeds is Reliance Industries. The company’s founder and CEO is Pradeep Dadha. Tamil Nadu Pharmaceuticals Ltd. was still in business when Sun Pharmaceuticals Industries Ltd. was established in 1997. Then, Sun Pharmaceuticals and Tamil Nadu Pharmaceuticals Ltd., both controlled by Mohanchand Dadha (Pradeep Dadha’s father), merged. Later, Pradeep established Netmeds and created a system for selling medicines online. The goal of the concept was to give customers access to a wide range of reliable medical supplies and effective medications.
- Netmeds’ growth has been remarkably spectacular.
- They assist about 30 lakh patients nationwide.
- In total, they provide services for more than 19000 pin codes.
- In Tier 1 and Tier 2 cities, there are 35,000 stocks available.
- Among its eight fulfillment centers are Chennai, Bangalore, Hyderabad, Pune, Delhi, Ahmedabad, Raipur, and Kochi.
- There are about 13 warehouses.
- They want to build 16 more warehouses in our country.
Marketing, commissions, and shipping costs make up Netmeds’ three financial pillars. Out of these 3, the commission accounts for the majority of the company’s revenue. The company earned up to Rs 4.46 crores in commissions alone in 2018. The primary target market for Netmeds’ business model is the chronic patient group. This suggests that they are distributing a medication supply valued at more than $10 billion all over India. They give the medicines to individuals who routinely take the same medication by using a reliable online supplier. They gain from having easy access to the medications, and it’s wonderful that they can get them delivered to their homes with relative ease.
Market Size of Medicine Delivery Apps: Need of the Hour
The COVID-19 pandemic and its consequences have made on-demand medication delivery systems more important than ever. They have developed as the main sources of assistance for online medicine delivery systems. The pandemic also caused a sharp decline in the availability of medicines and medicines as people started hoarding pharmaceuticals and pharmacies for sanitizers and medicines. Customers started using on-demand medicines delivery services in such circumstances since they could easily check the medicine’s availability and order it without having to leave their homes.
The research reveals that the healthcare and fitness industries are among the top corporate sectors for boosting the development of mobile apps and digital gadgets. Furthermore, it is anticipated that by 2020, the global market for mobile healthcare has grown at a CAGR of 33.7% and was roughly $90.49 billion. You’ll be shocked to learn that this sum was only $21.17 billion in 2018. According to Statista, the market for mobile health applications is said to reach $332.7 billion USD by 2025.
Let’s have a look at a few more stats that proves the same:
- Statistics show that there are more than 325,000 mobile health apps accessible on the main app stores.
- About 60% of all mobile phone users have downloaded a mHealth app.
- Additionally, mHealth apps have decreased the cost of remote patient monitoring by more than $200 billion and enhanced the efficiency of healthcare workers.
- Two on-demand medicines delivery startups, Netmeds and NowRx, have raised $35 million and $7 million respectively.
- Numerous additional publications also indicate the growth of mHealth apps. According to Zion Industry Research, the e-pharmacy industry has an estimated value of USD 42.32 million in 2018 and is predicted to grow to USD 107.53 billion by the end of 2025.
- Additionally, a different Zion analysis projects that by 2025, the market for mHealth apps will grow to USD 111.1 billion.
Ready to Enter Pharmacy Realm?
Future partnerships between Netmeds and significant pharmaceutical and food companies are anticipated. To make the most of the possibilities that data analytics has to offer, they will work to target certain patient populations. The growth of Netmeds’ nationwide network of fulfillment facilities, including its warehouses, is a top priority. The Netmeds Marketplace subsidiary employs a business-to-consumer e-commerce strategy.
On-demand applications continue to dominate as more industry verticals, including food delivery, grocery delivery, and even pharmaceutical delivery, join this business model. Nowadays consumers are becoming more tech-savvy as they come to assume that almost all orders and purchases would be completed via mobile devices. On-demand pharmacy delivery has become a crucial concern in light of the COVID-19 epidemic, social isolation, and imposed lockdowns.
As a result, this is the perfect opportunity for all business owners to invest in developing an app for medicine delivery on demand. QuickDelivery ready-made on-demand delivery management system is a cutting-edge, dependable, and advanced solution with a successful track record if you’re seeking your own pharmacy delivery system. If you’re eager to develop a medicine delivery app for your pharmaceutical firm that is similar to Netmeds, get in touch with the qualified specialists at Quickworks for swift success.
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