Amazon OTC Line's Impact On Pricing Grows Along With Its SKUs

Amazon's Basic Care OTC brand SKUs have doubled units since last year's launch and is putting great pricing pressure on private label competitors, says a Jefferies analyst. But a private label consultant says the e-commerce giant's threat to competitors in the consumer health market is over-hyped.

[Amazon.com Inc.] has doubled the number of stock-keeping units for its Basic Care OTC drug private label brand in less than a year since launch, boosting the pressure it's already generating with prices at least 20% less than two major retail pharmacy brands.

In a July 6 research note, Jefferies analyst Brian Tanquilut said he determined Basic Care is priced 20% less than...

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