The online pharmacy sector is experiencing notable growth within this expansive healthcare landscape. In 2024, the global online pharmacy market was valued at approximately $112.46 billion and is projected to reach $543.36 billion by 2033, with a compound annual growth rate (CAGR) of 17.06% during the forecast period. In the United States, the digital pharmacy market is expected to grow from $67.24 billion in 2022 to $240.22 billion by 2030, registering a CAGR of 17.25%.
If you’re looking to start or simply grow your online pharmaceutical business, you’ve come to the right place. At Corepay, we’ve been working with telemedicine and pharmaceutical merchants for many years and understand the ins and outs of the industry.
Why Do Online Pharmacies Need High-Risk Payment Processing?
Due to VIRP and card brand schemes, reliable payment processing for online pharmaceutical sales has become increasingly harder. At Corepay, we have been working with telemedicine and pharmaceutical companies, and helping them take all the proper steps to grow their business.
What is an Online Pharmacy and How Does It Operate?
An online pharmacy provides prescription medications via the Internet, allowing consumers to consult pharmacists online or over the phone instead of visiting a physical pharmacy. With over 50% of Americans failing to take their prescribed medications, online pharmacies play a crucial role in ensuring medication adherence.
Online pharmacies operate through a structured process:
- Physician Diagnosis – A doctor diagnoses the patient and prescribes medication.
- E-Prescription Upload – The prescription is uploaded to the Pharmacy Management System (PMS).
- Verification & Authentication – The prescription is cross-verified with the patient’s history.
- Inventory & Procurement – AI and machine learning assist in drug monitoring and inventory updates.
- Licensing & Transportation – Medicines are verified, packed, and shipped efficiently.
Why Start an Online Pharmacy?
The online pharmacy industry presents numerous opportunities due to:
- Consumer Convenience – Users can upload prescriptions, order medications, and receive timely deliveries from the comfort of their homes.
- Market Potential – The U.S. medication segment accounts for a large portion of the pharmacy market share.
- Technology Integration – AI-powered pharmacy apps streamline prescription management and inventory control.
Key Steps to Start an Online Pharmacy
Below are the steps put together to start an online pharmaceutical business from our underwriting department at Corepay.
Obtain LegitScript Certification
With VISA and Mastercard cracking down on unregulated pharmacies under the Verified Internet Pharmacy Practice Sites (VIPPS), LegitScript certification is essential. It ensures credit card processing compliance with industry standards, helping e-pharmacies maintain credibility and avoid payment restrictions.
Find a Pharmaceutical Payment Processor
A crucial step in launching an online pharmacy is securing a payment processor that specializes in high-risk industries like pharmaceuticals. Corepay provides tailored solutions for e-pharmacies, ensuring smooth transactions, fraud prevention, and chargeback management.
*Make Corepay your home for pharmaceutical payment processing.
Compliance & Licensing
- Register as a legal entity (LLC, corporation, etc.).
- Obtain state and federal licenses for selling prescription drugs.
- Adhere to HIPAA, HITECH, ADA, and PDMP compliance standards.
- Secure liability insurance to protect against pharmaceutical claims.
Develop an Online Pharmacy Platform
A robust pharmacy app should include:
- E-prescription functionality
- Secure online payments
- Scheduled medication delivery
- Real-time order tracking
- 24/7 pharmacist consultations
- AI-driven medication recommendations
Marketing & Customer Acquisition
To grow your customer base, leverage:
- Search engine optimization (SEO)
- Pay-per-click (PPC) advertising
- Social media marketing
- Email campaigns
- Influencer collaborations
Effectively marketing your online pharmacy is essential for growing your customer base and establishing credibility. A strategic marketing plan helps increase visibility, attract new customers, and retain existing ones. Below are key marketing strategies to consider.
Search Engine Optimization (SEO)
SEO plays a crucial role in driving organic traffic to your online pharmacy. By optimizing your website for relevant keywords and implementing best practices for search engine rankings, you can increase visibility and attract more potential customers. Important aspects of SEO include:
- Keyword research to target commonly searched terms related to e-pharmacies
- On-page optimization such as meta titles, descriptions, and structured data
- Content marketing through blogs, guides, and FAQs about medication and healthcare
- Mobile optimization to ensure a seamless user experience across devices
- Link building and outreach to establish authority in the pharmaceutical industry
Pay-Per-Click (PPC) Advertising
PPC advertising allows you to place targeted ads in search engine results and social media platforms, ensuring instant visibility for your pharmacy. With platforms like Google Ads and Facebook Ads, you can:
- Run targeted campaigns based on demographics, location, and user behavior
- Use retargeting to capture potential customers who have visited your site
- Track conversions and optimize ad spending based on performance data
- A/B test ad copy and landing pages for maximum effectiveness
Social Media Marketing
Social media platforms provide a direct way to engage with potential and existing customers. Establishing a presence on platforms like Facebook, Instagram, LinkedIn, and Twitter helps build brand awareness and trust. Key strategies include:
- Sharing educational content about medications, health tips, and pharmacy updates
- Engaging with customers through comments, direct messages, and community posts
- Running targeted ads and sponsored posts to reach a wider audience
- Collaborating with healthcare professionals for credibility and outreach
Email Campaigns
Email marketing remains one of the most effective ways to retain customers and encourage repeat purchases. Through personalized and automated email campaigns, you can:
- Send appointment and prescription refill reminders
- Provide exclusive discounts and promotional offers
- Share informative newsletters about healthcare and medication management
- Segment customers based on purchase behavior to send relevant content
Influencer Collaborations
Partnering with healthcare professionals, wellness influencers, and industry experts can expand your pharmacy’s reach. Influencer collaborations allow you to:
- Leverage their audience and credibility to promote your products
- Create authentic, engaging content about the benefits of your pharmacy
- Drive traffic to your website through endorsements and affiliate links
- Host live Q&A sessions or educational webinars to attract new customers
Profit Potential of an Online Pharmacy
Online pharmacies generate significant revenue, with the industry projected to hit $370 billion annually. A business selling 1,000 prescriptions monthly at an average price of $300, with an operational cost of $175,000, could see a monthly profit of $125,000.
Future of E-Pharmacies
With the integration of telemedicine, online pharmacy, and healthcare eCommerce, the concept of a Healthcare Super App is emerging. Companies like Capsule, valued at over $1 billion, are pioneering this approach, offering telemedicine consultations and direct prescription fulfillment.
Conclusion
Starting an online pharmacy in 2025 requires thorough planning, compliance adherence, and strategic partnerships. From obtaining LegitScript certification to securing a reliable payment processor like Corepay, each step is crucial for building a sustainable and profitable e-pharmacy.
