NEW YORK, Oct 8 (Reuters) - Amazon ( AMZN ) said on

Wednesday its pharmacy business in December will begin filling

some prescriptions for common medications at electronic kiosks

in its One Medical primary care locations, which the company

says will reduce barriers to access and limit shipping costs.

Amazon ( AMZN ) plans to start the offer with One Medical patients in

Los Angeles for drugs including antibiotics, asthma inhalers and

treatments for high blood pressure, the company said.

The kiosks will be the first in-person pick-up service

offered by Amazon Pharmacy, which has been providing

prescription services primarily by delivery, said Hannah

McClellan Richards, a vice president at Amazon Pharmacy.

One Medical offers a membership structure that allows

patients to access primary and urgent care at a subscription fee

of $199 annually. Patients without a membership are still able

to book an appointment and would be able to use the kiosk, the

company said.

Richards said in an interview that the company plans to

expand the kiosk model outside of California in 2026 and is in

talks with external health systems to introduce the machines

through partnerships.

Amazon ( AMZN ) does not plan to offer medicines that must be

refrigerated, such as GLP-1 weight-loss drugs, or more tightly

regulated prescriptions like controlled pain medicines through

the kiosk.

Inventory for each kiosk will be tailored to the provider,

and patients would be able to consult a company pharmacist

virtually, Amazon ( AMZN ) said in a press release.

Amazon.com ( AMZN ), the $2.34 trillion e-commerce company, launched

pharmaceutical delivery in 2018 through its acquisition of

PillPack. In 2023, the company purchased One Medical, a national

primary care provider.

Analysts this year have flagged shipping and logistical

costs as a potential squeeze on Amazon's ( AMZN ) profits.

Chief Financial Officer Brian Olsavsky, in a second-quarter

earnings call, said the company planned to make strategic

decisions on product placement in an effort to shorten delivery

routes and improve availability. "We're committed to initiatives

that further improve our cost structure," he said at the time.

Richards acknowledged that the most expensive part of the

e-commerce supply chain is shipping.

"If you put inventory closer to customers," she said, "your

shipping costs go way down and your demand goes way up."