Amazon enters OTC health care products market

In August 2017, Amazon quietly began selling its own line of over-the-counter (OTC) health care items, including 60 products ranging from ibuprofen to hair regrowth treatments.

Amazon does not own any of the new “Basic Care” product line. Basic Care is produced by Perrigo, which is a private-label manufacturer. While Amazon has not released product margins, according to CNBC reports some of the products are priced well below competitor retail pharmacy chains. As an example, Amazon Basic Care 200mg ibuprofen is priced at $6.98, while CNBC reported the same product had an average price of $12.41 at CVS Health, Rite Aid, Walgreens and Walmart.

CNBC also reported that the effort by Amazon to join the pharmacy market would bolster a “price war” and add pressure to store-band product margins.