How to Start a Supplement Company Step-by-Step
- December 9, 2020
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Starting your own supplement company can be the natural progression of your hobbies and interests, especially when you are passionate about health and fitness or see the massive opportunity that supplements present. Furthermore, according to Grandview Research, the supplement industry is expected to be worth $194.63 billion by 2025.
Drop shipping is growing its popularity among new entrepreneurs, especially gen Zers and millennials, due to their internet marketing skills that outweigh the financial capacity. Since you do not need to stock or handle the items you are selling, you can start your drop shipping business with limited financial resources.
That is how it works: an ecommerce website that operates a drop shipping model purchases the items it sells from a third-party supplier or manufacturer, who then fulfills the order. This cuts operational costs and frees up your time to focus your efforts on customer acquisition.
If you think you have interest and lots of motivation to start, we’re here to help make it as simple as possible!
1. Choose your Supplements
The very first thing to think about is which supplements you would like to sell. This is probably the most important step in the whole process! If you pick the wrong supplement you risk wasting time and money trying to make it work.
Here are 3 Tips for Picking the right Supplements to Sell
Define a Problem
Find a problem that you will offer to solve with your supplement. That could be appetite control, anxiety, joint pain, etc. The way you can win using this method is finding a new way or new group to market these to. Former athletes often suffer from joint issues but many companies only market their joint supplements to the elderly.
The most over-saturated supplements are usually the most popular ones (you can check this out by going to Amazon, etc.) Finding the sweet spot is the key. You need a supplement that has lots of interest but not many suppliers. This will take a lot of research, but it will be well worth it.
For example, the keto diet is still relatively new, and the supplement market has not completely caught up yet. This means there is still lots of space for new entrants in keto supplements retailers which might meet lots of demand. This is just one example. To guarantee success in the supplement industry it is important to find your trend or simply create one.
2. Decide between Drop Ship or Private Label
After you have decided which supplements,you are interested in selling it is time to decide which business model you want to apply. Custom supplements are great, but they arepretty risky and cost really much. This makes them less attractive for new entrepreneurs just starting out in the supplement industry especially without lots of startup funds. But there are two interesting options to consider: drop shipping and private label.
Drop shipping supplements is a low-risk way to start your brand very quickly. You don’t have to think about inventory, picking, packing and shipping orders, and it is probably the most affordable way to get started. Thus, basically, all youhave todo is focus on your marketing and sales.
There is one weak point of drop shipping supplements though, which is that you are not really building your own supplement brand. This business model typically involves selling other brands’ products that you have no control over.
Private label supplements, on the other hand, allows you to build your own brand of supplements. You pick which supplement formulas you want to sell and then put your own branding on the bottle. Here you have full control of how your brand is being built and presented. You can even go further and take your brand to the next level with custom supplements.
The downside of private label supplements, however, is that it requires more upfront investment and risk than drop shipping. They typically have a minimum order quantity (MOQ) of at least 50-60, which might mean spending hundreds of dollars on supplements you might not be successful to sell.
Supplements with On Demand Fulfillment
At XenoLabswe combine private labeling and drop shipping to provide you with the absolutely simplest way to start your own supplement company.
There are no minimum order quantities and no need to hold inventory. You only pay for it when your customer buys, while we label the supplement and ship it for you. You can easily integrate our system with whichever e-commerce platform you prefer.
And because we know that the quality of the supplement matters for your success, we have partnered with the top supplement manufacturers in the country.
3. Set Up Your Shop
So,you have picked your supplement and your supplier now it’s time to set up a seles platform. There are many great options like Amazon and eBay but another great place to start is setting up your own website and an e-commerce store.
Why is it better to go this way? Well, for example, Amazon has many restrictions and requirements for selling supplements on their website. It can take months to go through the process of becoming an approved seller. They are very particular about which products can be present on their website.
Setting up your own website and e-commerce store allows you to start building your own audience and start selling products immediately without having to pay commissions.
4. Start Marketing Your Private Label Supplements
While it might seem like after creating an ecommerce platform the work is done, it’s really just the beginning. The hardest and most complicated part of starting your own supplement company is making sales. This calculates your earnings.
You can start by building out your organic marketing. This means starting from blog posts or videos and sharing them across social media platforms. This is quite an interesting and creative part. One blog post or video can be used for multiple social posts that you can then share on all of your different social media accounts. You can share pictures and quotes from the blog or quotes and clips from your video to create different content. But always make sure that the social media platforms you choose are relevant to your demographic and target audience. Go where your customer is.
Once you havebegun to build up your organic (free) marketing the next step is to start running social media ads. Our advice is to consider the affordable Facebook and Instagram ads. Take advantage of that before it’s too late!
Play with your marketing, try new things and see what works best for you and your company. But do not forget to speak to your customer!
Are you looking to sell more of your Supplement products? Try out one of the 3 strategies that will definitely pay you back:
Every 20 minutes there is over 3 million messages sent out on Facebook Messenger!According to Statista, Facebook currently boasts over 2.5 billion users. We recommend you leverage Facebook messenger as much as possible to sell more of your Supplement products.
- Facebook Ads
Facebook ads are an incredibly powerful way to market to your Supplement audiences. And they work hand in hand with the Chatbot marketing strategy we mentioned above.
Most of the huge Facebook revenues come from digital advertising. Millions of businesses are leveraging the power of Facebook, and you can do that too!
- Influencer Marketing
Without many words, Influencer Marketing has proven to be a great investment for many of our top clients.Keep in mind it is a long play but if done right, it can bring massive returns.
Before you go
Starting your own supplement company must not necessarily be complicated but it does take hard work. At XenoLabswe offer you one simple solution to get started with drop shipping and private label supplements.In addition to providing best-in-class contract manufacturing services, we provide award-winning packaging and labeling as well as convenient order fulfillment services.
We love what we do, let us help you too!