Behind the scenes
Return rate: major differences between product categories
by Alex Hämmerli
Galaxus on its way to becoming an online pharmacy
21.9.2021
Translation: Jessica Johnson-Ferguson
Pictures: Thomas Kunz
Covid keeps on driving digitalisation. Something that also applies to the healthcare industry – both telehealth and the online trade of medicines are booming. Jvonne Scherer, Category Lead of Beauty + Health at Galaxus, has read the signs of the times and wants the online department store to include a pharmacy.
Jvonne Scherer is responsible for the beauty and health range at Galaxus. Together with her team, she is currently forging partnerships with renowned beauty and pharmaceutical brands. For many well-known brands, the pandemic and customers’ changing buying behaviour have made e-commerce an attractive sales channel. «Our partners know that in 2021 there’s no way around e-commerce,» Jvonne establishes and adds: «As online retailers, we also benefit from this. We can offer our customers a growing selection of high-quality products straight from our warehouse.» But despite her ambition, Jvonne is still far from reaching her goal – the road to setting up an online pharmacy is full of challenges.
We currently offer around 35,000 healthcare articles on Galaxus.
A search for «Aspirin» on Galaxus suggested the Acer notebook «Aspire» instead of pills relieve my headache. We’re still a long way away from an online pharmacy, aren’t we?
Jvonne Scherer: (laughs) If you look at the Galaxus range of health products at the moment, Galaxus is more of an online drugstore than an online pharmacy. We currently have around 35,000 healthcare items on Galaxus – anything from first aid kits to eye drops to fertility tests. In 2017, we started off with just under 3,000 products. This means we’ve almost tripled our product range. We have just secured several major partners, which means you can order virtually all non-prescription drugs that fall under the dispensing category E from us.
Prescription, non-prescription, dispensing categories – I’m not sure I follow. In concrete terms, which medicines can customers buy from Galaxus Switzerland?
Switzerland has four dispensing categories: A, B, D-and E. Category C was discontinued in 2019. As an online retailer, we can currently only offer prescription-free drugs from category E. These drugs don’t require a prescription and are available over-the-counter at doctors’ offices, pharmacies, drugstores and also from retail stores. What’s important to know is that they don’t require professional consultation nor is there a documentation requirement. Unlike us, drugstores and pharmacies provide professional consultation and are therefore permitted to sell category D drugs.
And how does our range compare to other Swiss mail-order pharmacies?
We sell the same range of products in category E online as all other Swiss mail-order pharmacies. In addition, we offer further healthcare services. These include insurance or smart health products such as body fat scales, blood pressure monitors and smart sports watches. What’s missing is Click & Collect, which would equal a professional consultation. This service would allow our customers to order drugs from category D in addition to category E and pick them up at the pharmacy. However, we need to get a brick-and-mortar pharmacy on board for that first. We’re confident that we’ll form this kind of cooperation in the near future.
Our aim is to make it easier for consumers to order medicines online.
Speaking of Swiss mail-order pharmacies – some of them already offer prescription drugs. However, the process isn’t digital yet, as the legal framework doesn’t allow it. This means that you have to fill in an online form first, print it out and, together with the prescription from your doctor, send it to the mail-order pharmacy. Sounds complicated. Why is that the case?
Yes, it’s complicated and not very customer-friendly. The Swiss drug market’s framework currently doesn’t allow for more. Compared to international standards, the legislation regulating the distribution of pharmaceuticals is very strict. What we want is to make it easier for customers to order medicines online. However, this will first require political changes and the will to develop digitally.
I see. In other words, the digitisation of Switzerland’s healthcare sector is simply taking a bit longer. What policy changes do you think are needed to sustainably digitise pharmacies?
One question that arises is why category D drugs aren’t available over the counter and why professional consultation can’t be offered to customers digitally via chat or by phone if desired. This is where cooperation between online retailers and pharmacies would make sense, as both sides are experts in their field.
In Germany, category D drugs are already available over the counter. There, you can buy, let’s say, Aspirin or Voltaren online. By the way, Swiss customers are already benefiting from this and are buying drugs from online pharmacies abroad.
And then there’s the relic of old times that is the physical prescription. Germany is also a step ahead of us in this respect. Our neighbouring country is introducing electronic prescriptions in 2022. Doctors will have to issue e-prescriptions with barcodes that can be accessed via app. This will make it much easier for patients to order medicines online, which ultimately benefits many consumers.
Why drag yourself to the pharmacy when you’re sick when you can order your medication from the comfort of your own home with just one click?
Does this mean that a boom in online sales of prescription drugs is expected in Germany?
Indeed. This innovation brings a gigantic market potential for online pharmacies. According to a recent article published in the finance magazine Cash, prescription drug sales in Germany alone generate annual sales of around 54 billion euros. At present, online market penetration is at a measly 1.4 per cent. Hence, the lion’s share of sales are made over the counter in physical shops. In Switzerland, the situation is comparable. But this will all change as soon as new legal framework is in force. Consumers will realise that they can conveniently order drugs online and have them delivered to their doorstep. Why drag yourself to the pharmacy when you’re sick when you can order your medication from the comfort of your own home with just one click?
Do you think the pandemic will play into the hands of online pharmacies and speed up the political process in Switzerland?
I think Covid has proven that things often work just as well when they’re digital. For example, remote working has become a solid alternative to a classic day at the office. Digitisation is in full swing and not about to stop at healthcare. For Switzerland this means deciding between being pioneers of digitisation or the last ones to jump on the bandwagon. The status quo is this: Switzerland has one of the most restrictive drug regulations in Europe. Do we want to keep it that way? Surely it would be sensible and constructive if our healthcare sector were more digital. I appeal to the Swiss politicians: we need to wake up to avoid missing the digital development in healthcare.
Stephan Kurmann
Senior Communications Manager
Stephan.Kurmann@digitecgalaxus.chStudies claim that we have a shorter attention span than goldfish. Ouch! My job is to get your attention as often and for as long as possible. How? With content you enjoy. Outside of the office, you’ll find me on the tennis court, curled up with a book, Netflixing or travelling.
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