Estimate: Amazon OTC Medication Sales Up 65% YoY in First Half of 2018

As Amazon retail sales grow overall, how much are specific categories growing YoY?

A new snippet from OneClickRetail suggests that Amazon’s OTC medication sales were up 65% YoY in the first half of 2018, reaching about $450M for the period.

OCR also notes an observation about Amazon’s efforts to promote its private label and exclusive brands:

In August 2017, Amazon launched Basic Care, the retailer’s first foray into private-label OTC medications. In an aggressive move, Amazon has placed an ad for their equivalent Ibuprofen capsules in a prominent position on Advil’s PDP in order to redirect a portion of Advil’s traffic and potential sales to Amazon’s private brand. Even a brand as ubiquitous as Advil has to find ways to offer shoppers a better value proposition compared a retailer’s (usually more affordable) house brand – and packing innovation is one good strategy for doing so.

We predict Amazon placing ads for its brands on searches for name brand products is something that’s going to occur more frequently going forward.

Amazon Launches OW-40 AmazonBasics Full Synthetic Motor Oil

Following our report last week that Amazon had launched AmazonBasics private label brand full synthetic motor oil in 5W-20, 5W-30, and 0W-20 configurations, it appears that Amazon has launched another configuration today.

AmazonBasics Full Synthetic 0W-40 Motor Oil is now available from Amazon as well. It’s packaged in a 1-quart 6-pack for $29.99. 0W-40 oils are recommended by OEMs for high-performance engines often found in European vehicles.

At approximately $5/quart, the AmazonBasics brand OW-40 oil is about 10% cheaper than a comparable standard OW-40 oil from Mobil 1, and about 56% cheaper than an “Ultra Platinum” OW-40 oil from Pennzoil, per Amazon’s OW-40 Oils hub page.

We predict further developments from Amazon on the private label automotive supplies front in the coming months. Stay tuned to TJI for the latest developments.

Amazon Launches 17 AmazonBasics Brand Professional Janitorial and Sanitation Products

Continuing its expansion into private label industrial/commercial supplies, Amazon has launched 17 new “professional” janitorial and sanitation products.

While they could be purchased by anyone, these appear to be clearly designed and positioned for B2B sales to businesses needing or providing sanitation and janitorial services and supplies.

The new products appear to have quietly launched in the last few weeks and have received many Vine reviews (i.e. from people who received free samples of the product in exchange for posting a review). The items are:

  1. AmazonBasics Professional Air Freshener Refill, Summer Breeze
  2. AmazonBasics Professional All-Purpose Cleaner, Concentrate
  3. AmazonBasics Professional Cleaner Degreaser, Concentrate
  4. AmazonBasics Professional Dishwashing Detergent, Spring Fresh, Concentrate
  5. AmazonBasics Professional Drain and Grease Trap Cleaner and Maintainer
  6. AmazonBasics Professional Extraction Carpet Cleaner, Concentrate
  7. AmazonBasics Professional Fabric Softener
  8. AmazonBasics Professional Glass Cleaner, Concentrate, Dilution Control
  9. AmazonBasics Professional Liquid Laundry Detergent
  10. AmazonBasics Professional Mold and Mildew Stain Remover
  11. AmazonBasics Professional Multi-Purpose Cleaner, Lavender
  12. AmazonBasics Professional Multi-Purpose Enzyme Cleaner
  13. AmazonBasics Professional Multi-Purpose Peroxide Cleaner, Concentrate
  14. AmazonBasics Professional Multi-Surface Polish and Protectant
  15. AmazonBasics Professional Non-Ammoniated Glass Cleaner
  16. AmazonBasics Professional Smoke and Odor Eliminator
  17. AmazonBasics Heavy-Duty Dishwashing Detergent, Concentrate, Citrus

Currently, existing players like P&G Professional (Dawn Professional), Clorox Commercial, Karcher, Dial, Tide, Arm & Hammer, and many more brands rank highly on Amazon searches for professional sanitation products.

In our spot checks, P&G/Dawn, Clorox, and others currently occupy related prominent headline search and sponsored product ad placements – though we are seeing sponsored placements for the AmazonBasics line as well.

If Amazon begins to promote these new AmazonBasics supplies as it does with some other private label products, that could affect the presentation and discoverability of third party brand items.

Stay tuned to TJI for the latest on Amazon’s B2B private label efforts.

Amazon Launches AmazonBasics Brand Bed Frames and Mattress Foundations

In what could imply a future entry into the consumer mattress market, Amazon has launched new AmazonBasics private label brand bed frames and mattress foundations.

The new AmazonBasics steel bed frames come in Twin, Full, Queen, and King sizes. Prices range from $40 for the twin to $70 for the king. These appear to have launched within the last week, as the earliest Vine review is from September 10, with new Vine reviews coming in still.

Similarly, the new AmazonBasics Steel Mattress Foundation/Alternative of Traditional Box Spring comes in Twin, Twin XL, Full, Queen, King, and California King sizes, with 5-inch and 9-inch variations. Prices range from $80 to $135. These appear to have launched within the last few weeks, as the earliest Vine review is from July 28, with new Vine reviews coming in still as well.

The mattress market is in a bit of turmoil with the entry of online players like Casper, Purple, Leesa, Saatva, Nectar, Helix, and T&N (which was recently acquired by Serta Simmons).

Should Amazon get into this market, and we would generally expect them to at some point, it would introduce new challenges to traditional brands like Sealy, Tempur-Pedic, Serta, Beautyrest, and Sleep Number, retailers like Mattress Firm, Rooms To Go, Mattress Warehouse, Ashley Homestore, Haverty’s, Ikea, and Macy’s, and online players alike.

As always, stay tuned to TJI for the latest as we continue to track Amazon’s private label bedding-related efforts.

Amazon Launches Exclusive Earth+Eden Premium Diapers Brand

Further expanding its efforts into the diaper and baby supplies market, Amazon has quietly launched a new exclusive premium diapers brand called Earth+Eden.

The brand is positioned as “Ultra-premium, high-performance diapers,” adding that it is, “For those that keep their little ones wrapped in the very best.” The product page says that the diapers are, “Cruelty free – not tested on animals,” “Made with SFI Certified sustainably sourced fluff,” “Printed with non-toxic water-based inks,” and “Produced in a Zero Waste to Landfill Facility.”

The diapers are retailing for prices ranging from $0.21 each (size 1) to $0.51 each (size 7), which is comparable to pricing for “standard” disposable diapers from brands such as Luvs, Huggies, and Pampers, and cheaper than other premium diapers such as Honest or Pampers Pure.

The Earth+Eden diapers appear to have launched within the last few weeks, as the earliest reviews are from August and Vine reviews (i.e. from customers who received free product, as often happens when a new product launches on Amazon) are coming in as of this morning:

In our checks the Earth+Eden diapers are the first item that appears in the “Top Rated from Our Brands” carousel (that Amazon displays before organic search results) when searching “diaper” on Amazon.com.

It appears that Earth+Eden diapers are manufactured by First Quality Enterprises, Inc. of Great Neck, NY. An entity named First Quality is responding to customer questions on the Amazon.com product page, and the trademark to “Earth & Eden” is owned by “First Quality Baby Products, LLC” as well. The company claims to be a “market leader in store brand manufacturing” and makes a variety of diaper-related products.

Amazon has also sold diapers under its Mama Bear private label brand since last year. Mama Bear diapers are currently ranked #46 in Amazon’s list of best selling diapers. Earlier last year, Amazon shut down the Diapers.com subsidiary that it had acquired with Quidsi in 2011.

Diapers queries on Amazon are saturated with advertising. For example, a current search results page in the US shows entirely sponsored products and headline search ads from Pampers and Huggies above the fold.

We expect Amazon to continue its expansion into baby supplies over the coming months. Stay tuned to TJI for the latest developments.

Amazon Launches 9 New P.O.V. Brand Personal Care Products

Continuing its push into private label household health and personal care products, Amazon has launched 9 new items under its P.O.V. brand. The items range in price from about $12 (Vitamin E Hand Sanitizer, Pack of 6) to about $29 (Aloe Vera Hand Sanitizer, Pack of 6).

The new items are:

Amazon has launched dozens of similar personal care products under the Solimo, Mountain Falls, and P.O.V. brands.  Amazon and Whole Foods also sell related products under the “365 Everyday Value” house brand.

CPG brands will be paying attention as Amazon continues its expansion into private label goods in this category. We’ll continue to track developments closely here at TJI.

Amazon Launches 3 Mama Bear Brand Kids Vitamin Products

Expanding its push into the private label vitamin and supplement market, Amazon has launched three new kids vitamins products under its Mama Bear brand. The new items are:

Amazon recently launched 10 new adult vitamin products under the Amazon Elements brand as well. Other brand owners in the kids vitamin market include Bayer (which owns the Flintstones and One a Day brands), SmartyPants, and Rainbow Light.

Stay tuned to TJI for the latest developments as Amazon continues to expand its private label efforts.

Amazon Launches New AmazonBasics Brand Carry-On Backpacks and Luggage

Continuing its expansion into the private label backpack and luggage categories, Amazon has launched a new line of slim carry-on backpacks in 8 colors. The backpacks are priced at $65-$75.

Top backpack brands on Amazon currently include Swiss Gear, Mancro, Vaschy, High Sierra, Matein, JanSport, and more.

In addition, Amazon has expanded its line of hardshell luggage. The 2-piece set in blue is priced at $160. The 28-inch piece can be purchased separately for $100 and the 24-inch piece for $80.

Top luggage brands on Amazon currently include Samsonite, American Tourister, Traveler’s Choice, Steve Madden, Rockland, and more.

We expect to see continued activity from Amazon in the private label luggage and travel accessories categories. Stay tuned to TJI for the latest developments.

Amazon Launches 10 Amazon Elements Brand Vitamins and Supplements

Continuing its push into private label vitamins and nutritional supplements, Amazon has launched 10 additional products under the Amazon Elements brand. Prices range from $10 (elderberry complex) to $28 (super omega-3).

The new items are:

Amazon says in the product descriptions that these items are being manufactured by Arizona Nutritional Supplements out of Chandler. ANS is privately held and has raised funding from Endeavor Capital. According to Endeavor, ANS’s “customer base includes multi‐level marketers, specialty retailers, physicians groups and brand marketers selling through retail and online.”

Amazon has launched dozens of house brand vitamins and supplements under its Amazon Elements, Solimo, and Nature’s Wonder private label brands. Amazon and Whole Foods also sell vitamins and supplements under the “365 Everyday Value” house brand.

We expect Amazon to continue to expand its private label efforts in the vitamins and supplements category going forward.

Amazon Launches AmazonBasics Private Label Synthetic Motor Oil

Further expanding into automotive supplies, Amazon has launched its first private label motor oil products.

The new AmazonBasics Full Synthetic Motor Oil variants come in 5W-20, 5W-30, and 0W-20 configurations, each in either 5 quart or a 6-pack of 1 quart quantities. Prices range from $20-$25.

Currently, the top motor oil brands on Amazon by search ranking and review volume include Castrol, ValvolineHavoline, Pennzoil, Mobil 1, Quaker State, Royal Purple, and Briggs & Stratton, with Castrol 03057 GTX MAGNATEC 5W-30 Full Synthetic Motor Oil getting the Amazon “Best Seller” ribbon as of today.

In our spot checks, the top advertisers for motor oil queries on Amazon’s US store include Castrol (with both a headline search ad and a sponsored product listing), Shell, and Valvoline.

According to the product label provided, Amazon’s new private label motor oils are supplied by Warren Distribution, which is headquartered in Omaha, Nebraska. Warren’s brand portfolio includes MAG 1, Polar, ACCEL Premium, Craftsman Lubricants, and Gumout, in addition to its private label efforts, according to its website.

The product listing states that its “Date First Available” was July 23, but many Vine reviews have just been posted within the last week. AmazonBasics Synthetic Motor Oil is also now listed second in the “Hot New Releases” section of Amazon’s Motor Oils hub page.

We predict further developments from Amazon on the private label automotive supplies front in the coming months. Stay tuned to TJI for the latest developments.