Comparing Rx Marketplaces: Finding the Best Fit for Your Pharmacy
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by Laisha Daley<br/>
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Laisha is the Chief Marketing Officer of InStockRx.<br/>
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If you are a Community Pharmacy Owner or Pharmacist in Charge looking for new strategies to improve your cash flow, this is for you. <br/>
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Pharmacy Owners and Operators have options when it comes to using pharmacy-to-pharmacy marketplaces, but it is important for them to evaluate these with their eyes wide open. In this article, we cover what pharmacy owners should look for when evaluating and comparing Rx marketplaces, so they can select the one that is the best fit for them. <br/>
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What are Rx Marketplaces and why do they exist?<br/>
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Pharmacy owners purchase inventory using a variety of methods, starting with their primary wholesaler. There are usually agreements in place that contractually obligate a pharmacy to order a certain amount from their primary wholesaler, so that they can receive the best possible pricing. <br/>
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In an overstock situation, pharmacies will work with their reverse distributor to return items. However, some items may not be eligible for credit. This creates a pain point for pharmacies, by having non-returnable items, resulting in a negative impact on their profitability. This is where Rx marketplaces come into the picture.<br/>
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Rx Marketplaces exist to help pharmacy owners improve their cash flow and minimize wasted inventory by facilitating trades of inventory between related or unrelated pharmacies. This is a strategy to help a pharmacy recoup some of the cash sitting on their pharmacy shelves while also helping a fellow pharmacy owner who may be experiencing a shortage with the same medication.<br/>
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Top 5 Criteria for Evaluating Rx Marketplaces<br/>
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There are several factors to consider when evaluating and selecting the best pharmacy marketplace: <br/>
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- Understand their platform’s capabilities.<br/>
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Different marketplaces offer varying features. For instance:<br/>
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Some marketplaces allow pharmacies to list inventory but do not handle the payment process, while others support transactions and payments.<br/>
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Certain marketplaces require pharmacies to manually list surplus and set prices, while others can automatically identify surplus items through integration with a PMS or wholesaler.<br/>
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It’s crucial to determine whether the Rx marketplace streamlines processes or adds complexity for you and your team.<br/>
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- Understand other value-added services they offer.<br/>
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Are they solely a marketplace to post items, or do they offer analytics and insights and other services that make it easier for the pharmacy owner to proactively identify and liquidate surplus inventory? What does their onboarding process entail? Do they have a customer success program, and how do they communicate platform updates to their customers? <br/>
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- Understand their geographic coverage.<br/>
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Some marketplaces may be extremely limited, operating within a single state, whereas other marketplaces can support and service pharmacies across the United States. Certainly, state regulations vary on whether they permit pharmacies to transfer inventory across state lines, but the marketplace platform itself should be flexible to support pharmacies at both a state and national level.<br/>
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- Understand how they comply with the DSCSA (Drug Supply Chain Security Act) requirements. <br/>
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While the FDA recently announced they have granted a delay in the DSCSA implementation timelines for pharmacies with fewer than 25 employees, the pressure is not entirely off. Some marketplaces permit you to trade inventory on their platform if it is for a specific patient need, which is an exemption from the DSCSA requirements, but that is not the only use case for a Rx marketplace. This is a critical factor when selecting a marketplace, as it could be the difference between having a cash flow boost or a painful claw-back after a PBM audit. InStockRx has leaned into the DSCSA requirements.<br/>
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- Consider how their pricing aligns with the overall value their marketplace provides.<br/>
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In most cases, you will find that marketplaces are free to join, and charge a fee based on a percentage of the transaction. However, these percentages can vary from one Rx marketplace to another. It is important to evaluate Rx marketplaces based on the value they deliver compared to those fees. There are marketplaces such as InStockRx, that in lieu of a transaction fee, offer a monthly subscription for rebalancing inventory within commonly owned stores. This can be an extremely attractive option for independent pharmacies that own and operate multiple stores, and deliver an immediate return on investment (ROI). <br/>
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BONUS: Ask for case studies to see how others have benefitted from using their platform.<br/>
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Do they have any case studies or success stories they can share to demonstrate the results their platform can deliver? While it is not a guarantee, having relevant examples of how others have found success using their marketplace is helpful to the decision-making process.<br/>
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InStockRx: The Next Generation of the Rx Marketplace<br/>
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While each option has its merits, the choice ultimately depends on your specific needs and priorities to ensure the best fit for your pharmacy. <br/>
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One option may be budget friendly but lacks the advanced capabilities that you may require for your pharmacy. Another option may be good enough, but then you may find that their customer experience and transparency in pricing is lacking. <br/>
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InStockRx stands out by: <br/>
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Providing a robust set of capabilities that make it easy for pharmacy owners to proactively manage their inventory, including analytics,<br/>
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Helping pharmacies automatically rebalance inventory between commonly owned stores,<br/>
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Facilitating transactions AND payments between pharmacies. <br/>
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Delivering solid wins for their customers (see a recent success story here) AND<br/>
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Doing all of that in a way that is cost effective and aligns with the DSCSA requirements.<br/>
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Get Started Today<br/>
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Are you ready to experience the best-in-class solution and turn your overstock, deadstock or expiring stock into cashflow? Click here to get started with InStockRx. There is no cost to join the platform.<br/>
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by Laisha Daley<br/>
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Laisha is the Chief Marketing Officer of InStockRx.