Amazon.com announced on November 14, 2024, the launch of a new telehealth service offering fixed pricing for conditions like erectile dysfunction and men's hair loss. This move directly positions Amazon as a competitor to Hims & Hers in its core markets.
The new service provides Prime members access to treatments for anti-aging skin care starting at $10 a month, erectile dysfunction at $19 a month, and men's hair loss for $16 a month. These prices are significantly lower than what Hims & Hers typically charges.
Analysts at Bank of America noted that Hims & Hers generates over 80% gross margins from its core erectile dysfunction and hair loss offerings. Amazon's medications for these conditions are estimated to be 29% to 42% cheaper, posing a serious competitive threat and potentially limiting Hims & Hers' pricing power and customer acquisition ability.
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