Perrigo is in the first year of selling a brand of pharmaceuticals exclusively on Amazon.
The Allendale-based pharmaceutical manufacturing company began selling the Basic Care brand on Amazon in August.
Jeff Needham, executive vice president and general manager of U.S. consumer health care for Perrigo, said the product was launched “a little softly” to be sure “everything was in order.”
The brand has grown from 40 over-the-counter products to more than 60 since then, he said.
“It seems to be attracting consumer attention,” Needham said. “We’ve been pleased with how the portfolio was launched.”
Perrigo has a policy against disclosing customer sale numbers. The company’s 2017 annual report showed $4.9 billion in total net sales.
Amazon declined an interview on the subject but provided a statement via email.
“Basic Care has been popular among Amazon customers since its launch and we are very pleased with the Customer Ratings,” Amazon spokesperson Neil Rona said.
Needham said what makes Basic Care stand out is the “significant cost savings” compared to equivalent national brands.
This is not an uncommon venture for Perrigo. The company sells many products through many in-store and online avenues, including through retailers such as Walgreens.
Perrigo has been selling its GoodSense brand on Amazon, among other places, for more than three years. As Amazon became more developed in consumer health, that relationship grew into the manufacturer creating the exclusive brand — the results of consumer research and brand development work, Needham said.
“In some respects, you could say this is just another program,” he said. “This is the way we work with our customers.”
He said this is important to Perrigo because it’s another step with customers toward the growing e-commerce market.
“Our marketing strategy is that we want to meet consumers, in partnership with our customers, wherever those consumers are and wherever those consumers want to access their consumer health care,” Needham said.
“E-commerce and Amazon represent a developing channel of how consumers in the future, we believe, are increasingly going to access consumer health care. So, it’s important for us to be prepared and have programs in place to accomplish that.”
The company does not disclose specific strategies, but as with all its customers, he said, Perrigo will do its best to adapt to changes and grow with Amazon.
“The approach that we have taken and will continue to take with Amazon is no different than any of our other customers — be the strategic partner with them and invest in the business and invest in resources and infrastructure so that we can grow with them,” Needham said.