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

 
• By Eileen Francis

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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