How To Start an Online Pharmacy Business – Complete Guide

Start An Online Pharmacy

Wondering how to start an online pharmacy business?

We’ve got you covered, in this article, we are going to guide you through everything about starting an online pharmacy business and all the information that will help start an online pharmacy.

Pharmacy eCommerce is an area we’ve been working on for the past 8 years. So we decided it was about time I wrote about it on our own blog, here you will find everything you need to get set up with your online pharmacy business.

This post talks about how to set up your own pharmacy eCommerce website but also guides you with step by step process to start selling pharmacy online in almost no time.

Most people have a multitude of reasons for wanting to start their own pharmacy business. We all have different goals and dreams which is what drives us every single day.

But because there are so many reasons why people want to start their own business, there are also different types of goals that drive these individuals.

Your goals might be different than someone else’s goals, but that doesn’t mean either one of you should give up on your goals

start an online pharmacy


Selling pharmaceutical products online via e-pharmacies allows you to reach more people.

It’s also easier for end customers to buy medicines, nutraceuticals, and health supplements online. Online shopping is much easier than visiting a physical pharmacy or chemist shop.

Online pharmacies have led to an increase in medicine delivery, particularly for elderly customers. They offer convenience and ease of access to their medications delivered right at their doorsteps.

Online pharmacies are mainly a market for urban customers. However, the situation is changing. Customers from Cat 2,3 cities now prefer to shop online for their medicines.

E-pharmacies have a large inventory of drugs and can provide nearly all medicines in 24 hours.

Customers can choose from many different brands of medicines. This helps customers who live in remote areas and cannot visit drug stores or chemist shops.

Online selling of medicines has opened up new opportunities for business owners who want to open an online pharmacy.

This guide will help you set up a pharmacy eCommerce site.

Online Pharmacy vs Brick-and-Mortar Pharmacy Store

The State and Central Governments face challenges in regulating online pharmacy trade due to the rapid growth of eCommerce.


Owning an online pharmacy has its pros and cons. It allows pharmacists to open their own pharmacy without the need to purchase an existing business or negotiate a new contract.

E-pharmacies are peacefully co-existing with traditional pharmacies all over the globe. E-pharmacies can be viable because they focus on chronic treatments, but retail pharmacies are required for urgent requirements of acute medicines like pain killers or antibiotics.

The key benefit of online pharmacy is that It can serve locations where normally pharmacy stores do not normally exist.

What are the advantages of starting an online pharmacy business or e-Pharmacy store?

Although there are many great reasons to open an online pharmacy, the industry is highly regulated and presents many challenges.

E-pharmacy, or online pharmacy, is not only competing against traditional pharmacies but also with government-operated shops in many countries. This market is huge because of its model that allows consumers to access medicines faster and with core convenience.

Brick and mortar stores will still be dominant, but synergy can emerge with the right environment, appropriate and propitious policies, and the desired scale of investment.

There is a strong belief that online pharmacy regulations will soon be in place in many developing countries. This will allow for more players to enter this vast market with great potential. When it comes to drug sales, consumers will be more important than offline or online pharma retailers.


Here are four reasons to start an online pharmacy and why you should consider developing a website or app for your pharmacy business.

E-pharmacies are definitely very lucrative businesses. The tremendous opportunity in the business is just because of the lack of competitors.

So, if you’re looking to start an online pharmacy business contact us and our team will help you start a successful pharmacy online store.

1. Convenience

The fact that ordering medicines online is easier than visiting the pharmacy, especially for seniors, who are the most likely to spend the most money on drugs, is a common belief.

Below are key conveniences of online pharmacy stores for customers and as you know the more convenience you offer the more your business will grow:

  • Online medicine ordering is available 24/7
  • Customers can access reminders about medications and provide assistance around the clock.
  • Online pharmacies allow patients to discreetly purchase drugs without having to meet face-to-face interactions.
  • Online pharmacies have increased in popularity, which means that there are more options available for buyers to choose the best price and service.
  • Online pharmacy delivery can offer access to many medicines to a wider audience.
  • Consumers don’t have to deal with the hassle of finding medicine at different stores.
  • You can find information on substitutes, reviews, and descriptions of medicines on the market.
  • A pharmacist can be reached quickly via email, phone, or live chat.

The internet has allowed the selling of products and services through online platforms in a very simple and convenient manner. Anyone from anywhere at any time can now buy from sellers all over the world.

2. Simple ordering process

The only information required for the order process is the consumer’s contact information, prescription information, doctor’s information, and payment method.

Easy ordering makes it more attractive to customers as it is easy to place orders.

The process for ordering a pharmacy online is very simple. The consumer enters their contact information including name, address, phone number, email address, etc. The

According to research by HIS (Healthcare Information and Management Systems Society), it is projected that 26% of the total medicine sales will be through online pharmacies by 2023.

3. Efficient Delivery

The online pharmacy delivery service makes it easy for customers to manage their medication.

As online pharmacy customers can get pharmacy delivered quickly and contactless.

A step-by-step guide to starting an online pharmacy business

Firstly, to start an e-Pharmacy business, you have to understand its industry. The online drug delivery industry is segmented into oral, pulmonary, injectable, ocular, nasal, topical, implantable, and transmucosal drug delivery.

1. Research and Planning to Start an Online Pharmacy

To succeed in any business, you need a clear plan to start with. This will allow you to organize the details.

Here are some important things to keep in mind:

  • Do an in-depth market analysis.
  • Find out what the ongoing and start-up costs are.
  • Identify your target market and create a marketing strategy that will work.
  • What is the time it will take to break even?
  • What name will you give your business?

Clear business plans will help you plan the direction of your business and will be essential when approaching venture capitalists.

Your target market will be those between the ages of 30 and 55, as they are the most comfortable ordering online from their phones or computers.

2. Finalize Brand Name

You can choose your niches like beauty, fitness, healthcare, personal care, and skincare.

It is difficult and crucial to choose the right name for your online pharmacy. Before you register a business name, make sure to check whether there are any available web domains and social media platforms.

Register a catchy and attractive domain name before anyone else.

After you register a domain, you can set up a professional email account such as “your name@your”.

3. Identify Opportunities

The advantage is that large corporations will support you and your initial setup cost will be lower.

This will allow you to spend less money on marketing, promotions, and finding new customers.

4. Be legally compliant

When opening an online pharmacy, there are many legal requirements. Usually, you will need a Drugs License for retail license depending on where you like to open an e-pharmacy.

For your company to be legal, you must form a legal entity. You can form a sole proprietorship or a private limited partnership.

5. Tax Registration

For any payment transaction, you must also register for TAX. Although, tax registration is subject to the jurisdiction where you would like to operate.

All medicines must be shipped from a licensed chemist shop. Anyone who starts this business must have a diploma or degree in pharmacy from a recognized university or institution with at least one year of experience dealing with drugs.

You can also hire a full-time chemist to deal with prescriptions and process them if you don’t have any chemistry experience.

6. Funding

After identifying your business structure and functional entity, it is time to raise funds. You should learn how to manage expenses such as employees, rent, working expenses, purchasing medicines, and other expenses.

Pharmacy businesses can have many financing requirements. Plan and manage these efficiently to increase your profits.

An investment firm may be willing to buy a stake in your business and raise funds for it. You can also approach your local bank to apply for a small-business loan.

7. Expenses

Your primary expenses as an online pharmacy owner will be the purchase of prescription drugs wholesale.

Advertising, salaries of employees, and administrative expenses (e.g. maintenance of the website) are just a few examples.

8. Supply chain

Establish relationships with respected pharmaceutical companies. Be the preferred distributor of some well-known brands.

Collaborate with delivery companies or build your own delivery chain to ensure timely delivery of orders.

10. Promoting your brand online

A pharmacy’s social media presence is essential to attract more customers. Social media has opened up a lot of opportunities for pharmacists as more patients use it to share their medications and ailments. Social media can be used to share information about your products.

11. Increase profits

You may offer premium subscription services to your customers as you grow your business, such as free consultations with doctors for those who choose a plan.

You can also make money selling featured products. A pharma multi-vendor marketplace can be created to help offer a large selection of inventory.

12. Get Customer Support

Your business is a vital part of customer service. It adds value to your customers and provides quick responses.

Technology is changing the way we do business. Adding AI and chatbots to your customer service will increase customer satisfaction and reduce manual intervention.

This will allow for quicker responses. AI can reduce the need for human intervention.

Online Pharmacy Store Business Model

There are two types of online pharmacy business models. The first is where the online pharmacy stocks and delivers medicines directly to the customer.

It works just like a local pharmacist, which stocks many medicinal products. A valid prescription must be provided by the customer to confirm that the medicine is legal to be purchased.

The second option doesn’t require you to keep the medicines in stock. You can instead partner with local retailers.

By sourcing generic drugs directly through manufacturers and then selling them to pharmacies, you can create an online pharmacy aggregator business model. This will allow you to eliminate the wholesaler margin of 16-20 percent.

Pharmacy eCommerce

Customers will be able to find out more about you and your products by visiting this website. An app can be created that allows customers to upload prescriptions or place orders.

This will allow you to ship drugs quicker to your customers. The app will be a complement to the website and will make it easier for customers to purchase from.

Why Start an Online Pharmacy Business?

E-commerce giants like Amazon and Alibaba have made significant investments in online pharmacies over the past year. Amazon Pharmacy allows patients to order prescription medications through the platform. Alibaba Health plans on offering similar services to both patients and providers.

These companies will certainly not be the first to enter the online pharmacy. It is therefore important to keep track of who is already in the space and who intends to break into it.

Here are some reasons to open an online pharmacy shop:

  • The online pharmacy business is booming
  • An online pharmacy business can be established in very little time and at a very affordable cost.
  • The future of business is online pharmacy
  • It is easy to open an online pharmacy business.

E-commerce integration allows pharmaceutical vendors to provide patients and providers with an efficient and easy way to search for and buy the drugs they require. This allows patients to order and receive prescription drugs online from their homes.

Comprehensive pharmaceutical e-commerce platforms are available for B2B to allow providers to compare and contrast all the fluctuating factors that affect drug purchases, including current availability and prices, to help them make informed decisions about drug spending.

Drug manufacturers might also be forced to lower their prices if they have transparent purchasing options. It is currently not possible to know the exact cost of individual healthcare organizations’ drugs. Open e-commerce platforms give these organizations a better understanding of current market prices and allow them to negotiate lower prices.

Online drug buying should assist hospitals and healthcare systems in securing the right drugs at the right price at the right time. This could lead to significant cost savings.

The industry will continue to innovate as a result of the rapid growth in e-commerce for prescription drugs. Online drug shopping should be easier and more efficient for both patients and providers.

Online pharmacies allow vendors to expand their business while reaching more patients and providers who are in greatest need.

Online ordering is ideal for rural patients who may not be able to access a pharmacy nearby. All healthcare organizations benefit from the simplicity of ordering and viewing all their options in one platform.

Conclusion: Start an Online Pharmacy

Many people who want to start an online pharmacy business may feel unsure how to get started. They don’t know what is involved, or how they can even begin making money in this super competitive arena.

The post above outlines everything you need to know to get started in eCommerce pharmacy selling. The most important thing you should realize before starting such an e-pharmacy business is that isn’t easy.

It requires a lot of hard work and patience to run a successful e-pharmacy store and deliver products on time to your customers. You need to establish a good online presence and be consistent with your services throughout the year, which isn’t possible for most startups with limited resources and financial support.

The good part is that because an e-pharmacy store can be operated from a home office, it does not require a great deal of startup capital. On the contrary, a traditional pharmacy business involves a lot of investment to set up a storefront and hire staff for assisting customers with the purchase of medicines.

In other words, the e-pharmacy business has many advantages over its traditional counterpart including less overhead costs, lesser need for staffing, convenient receipt of orders from customers for medication processing, and easy access to an assortment of products manufactured by leading brands.

Moreover, there are no restrictions on selling medicine or OTC drugs online since they don’t have any serious side effects, unlike other products. As a result, the internet pharmacy business

Starting an online pharmacy business is a great idea as it gives you more room for professional growth and expansion. High-profit margins on medicines and OTC drugs push you towards a promising future as this business model continues to gain a lot of traction in the current economy.

You can start your medical store with minimum investment in premises, products, delivery services, etc. while maintaining the quality laid down by the Food and Drug Administration.

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