Wanting to know how to build a supplement company has been a really hot topic over the past few years, and with the number of tools and private label supplement companies out there, it’s never been easier to start your own supplement company.
Some of the biggest reasons that many entrepreneurs are looking at how to start a supplement company of their own include:
- They can create their own brand of supplements, and are not simply reselling the same product and brand that everyone else is
- Supplements are hot sellers and there is always a market for them
- Supplements typically have solid profit margins versus other types of products many eCommerce sellers offer
- Most supplements need to be replenished monthly, meaning the ability to get recurring monthly sales instead of one-time sales
- There are a lot of supplement manufacturers in the U.S. to choose from and they are required to meet strict manufacturing standards for product quality
- And many more reasons.
Now that we know why supplements can be great products to sell, let’s look at the different steps on how to get started building your own supplement company.
Let’s take a more in-depth look at each step below:
Step 1: Discover In-Demand Products
While some people might start at the naming and branding level when starting a new business, I recommend starting at the product level first and to be sure that there are products that you like and that are in-demand.
After all, there’s no point in wasting time or money building a business if there are no products you like, and especially if there is not enough demand for the products you are interested in selling.
With that in mind, you’ll want to look at the different categories of supplements and see which ones are selling well.
For example, people are always wanting to lose weight (weight loss supplements), get in shape (protein, creatine, testosterone, etc), get healthier (vitamins, greens, etc) improve memory (fish oils, Vitamin D3, Ginkgo Biloba, etc) and many more categories.
As you look at each category and the types of supplements that could be sold in each one, you’ll want to research which ones are the best sellers.
One way to check out the best sellers is to go to Amazon, look at each category, and then make notes on the top sellers there.
Another way to see top supplement categories is simply to type the word “supplements” into the search bar, but BEFORE you hit enter, Amazon will give you a dropdown menu with related keywords.
These keywords given will be high volume, big selling keywords related to “supplements”, so they can be a great place to start your searches.
A way to take this step even further is to scroll to one of those keywords and extend the search.
For example, one of the keywords in the dropdown suggestions is “supplements for men”.
To extend that keyword, scroll to “supplements for men”, then hit the spacebar, and you will get another set of dropdown keywords related to that keyword search, revealing the high-traffic, bigger sellers for that search string.
Repeating this little Amazon search hack will reveal lots of categories you may not have thought of, so spend some time digging around what keyword Amazon tells you are the highly searched and best selling keywords out there.
Then, once you have some search categories you want to explore best selling products in, hit enter and you’ll be taken to the best selling supplements for each of those categories.
Once you’re on the results, be sure to review the number of reviews different products are getting, and how many stars they are getting.
Then click through different products and see how they are ranking by looking at their Amazon Best Sellers Rank.
Repeat this search for as many different categories and product types as you can so you can get a good feeling of what types of products are out there, how they are selling, what the reviews tell you about possible shortcomings, and which ones you think you might like to sell.
Create a list of the top products you think you’d like to sell, then move to Step #2 to start looking at your market.
Step 2: Define Your Market
Now that you have a large list of hot selling products that you’d like to consider selling, now it’s time to look at the potential market you’d like to sell supplements to.
If you’re at this step but you’re not sure if you’ve searched enough products to feel confident in selecting a market, then it’s important to go back to Step 1 and keep researching.
After all, you don’t want to pick a market if you’re not fully confident of the products and product selection to get started.
So, if you’re still here, I’ll assume you’re happy with the list of products you’re researching.
As you review your list of potential products, do you already see a natural market emerge, or does it just seem like a list right now, but nothing is standing out in terms of a potential market yet?
If nothing stands out yet, you’ll want to start sorting the list of products into natural categories or topics.
For example, do you have a group of products that seem to fit into a category for something like Bodybuilding, or Sexual Health, or Losing Weight, Men over 40, etc?
Begin to sort them into similar products and see if any themes jump out to you.
Or if there is a category you were hoping to sell in, do these products match that category? If not, go back to Step 1 and find more best sellers in the categories you want.
Keep sorting and searching for products until you have them in categories, and until you have a number of products to choose form in a category that you’d like to build around.
Once you are satisfied that you have a category you like and a number of best selling supplements to choose from, it’s time to start defining your market.
For example, if you have products for sexual health, testosterone, hair regrowth and weight loss, you might be looking at a market that serves Men over 40.
Once you feel that you have a market in mind, it’s smart to go back to Step 1 and find even more products that relate to the market you are zeroing in on in case you missed some other bestsellers to potentially sell.
After you’ve got your market figured out, you’ll move onto researching your competition.
Step 3: Research The Competition
Many people skip the step, or don’t give it as much focus as they should, but this is one of the most critical steps in helping you decide if you should sell certain products and how you want to position those products you do sell.
In researching the competition, it’s not just for seeing how many potential customers you may be up against, but more importantly, it’s learning about their potential weaknesses that you can use to your advantage.
By weaknesses, we’re not only looking at where the products miss the mark, but also where the product marketing misses the mark.
One of the best ways to find issues with various products is to read the reviews customers have left on the products.
Platforms like Amazon make finding the reviews easy. However, if the products aren’t sold on Amazon, then you’ll have to search Google or perform other creative searches to find any reviews that might be out there.
The reviews can be a goldmine of information for ways to improve upon products, fill in feature gaps, and to avoid issues that other products have experienced, so it’s critical that you spend significant time here discovering every way you can capitalize on possible product weaknesses.
For example, you may find that reviews are saying that the flavor of a certain supplement is not good or hard to take, so finding flavors that work could get you more sales.
Or you might find that supplements that have gel caps get asked a lot about whether the caps or vegan, vegetarian, etc, so there is a possible advantage to be gained by using caps that are more plant-based if that seems to be a sticking point for customers.
At the end of the day, you want to carve out any advantage that you can to give your supplements the best chance to sell really well.
Step 4: Create Your Supplement
Once you’ve done all your research and have picked the supplements that you want to sell, it’s time to have your supplements created.
The good news is that there are a lot of options to choose from when it comes to supplement manufacturers.
So let’s look at some of the things you need to consider as you review where and how to manufacture your own supplements.
Resell or Rebrand?
The first decision is to decide if you will be reselling existing supplest brands or if you will be creating your own brand.
The benefits of reselling include reasons like capitalizing on an established brand, proven promotions, dependable sales and cheaper investments.
On the other hand, most people considering the supplement route are looking at Private Labeling, and branding the supplements under their own brand name. Some good reasons for Private Labeling include building your own brand that you can possibly sell someday, larger margins, and full control over how you sell the products.
The good news is that there are a lot of options for either way. However, moving forward, we’ll focus on rebranding your supplements under your own brand name.
Product Availability And Turntime
Another important factor in picking a manufacturer is how quickly they can produce more of your supplements for you and have them back in your hands for sale. For example, if it takes 2 full weeks from the time you place your order to the time it reaches you, then you need to review how quickly you expect your inventory to run out and place your order at least 2 weeks before you expect to sell out in order to have no disruption in your supply and ability to sell.
Minimum Order Quantities (MOQ)
When you are ordering supplements from the manufacturer, they will have a minimum quantity they require you to order from them.
Some manufacturers require a few dozen products to be purchased, while others can require hundreds and even thousands of products to be purchased.
Example: A supplement that costs $10 from the manufacturer will cost you:
MOQ: 100 = $1,000 Order
MOQ: 1,000 = $10,000 Order
MOQ: 5,000 – $50,000 Order
Not only that, you might find that you can get price-breaks at certain order quantities, so be sure you’re clear on all the terms, because the amount of money you need to invest in inventory AND planning on where you will store your inventory will have a big impact here.
Licensing and Insurance
In terms of product quality and being assured that your supplements are manufactured using best practices, you will want to review what manufacturing licenses your supplements are produced under.
The most important one is to verify if they are manufactured in a facility using Certified Good Manufacturing Practices (cGMP) that follow all FDA guidelines.
When they have this certification, you can be assured that they are following strict guidelines to ensure quality and protecting the product safety.
You also want to know if you are covered under their insurance protection or not, as many manufacturers will cover many issues in the case of product deficiencies caused by the manufacturer.
Step 5: Build Your Brand
Now that you know what supplements you’ll be selling and who will be manufacturing them for you, it’s time to create your unique brand.
There are several components that you’ll be able to customize with your supplements – here are a few of them to plan for:
One of the most important parts of your brand is your logo. Thankfully, there are virtually an unlimited number of designers that can design your logo for you, such as Fiverr.com, 99Designs.com, LogoNerds.com and hundreds more sites like those.
You’ll find designers at any budget level, so you’ll need to determine how much you want to spend, and get as clear as possible in your description, ideas and examples as possible so you get some great options to choose from.
When it comes to your supplement labels, your manufacturer will have the label templates to work with so that you stay compliant, but you’ll be able to change the color schemes, title, color and more.
Depending on the supplement type, there may be additional packaging that you’ll be able to brand. Again your manufacturer will have the product design templates for you to work with as you begin working on your brand.
Many manufacturers will also allow you to add inserts/advertising with your orders, which is a great way to extend your branding and your promotional efforts.
Step 6: Sell Your Supplements
Now that your supplements have been manufactured and branded, it’s time to start selling, so you’ll need to select your selling platforms.
There are a lot of platforms to sell on, and it depends on whether you want to run your own eCommerce sites, sell them through platforms like Amazon, Walmart, eBay, and more, sell in retail locations like GNC, or a combination.
The easiest to get started with is selling through your own site, using platforms like Shopify, WooCommerce, CommerceHQ and others.
Many sellers also like to sell on Amazon, sending inventory into Amazon warehouses and having them fulfill on your behalf through the Fulfilled By Amazon (FBA) program. Customers love using Amazon Prime to get free 2 day shipping, so that can mean a lot more sales through Amazon for you.
However, Amazon also charges a lot of fees, so you need to factor those fees into your decisions on where and how to promote.
Step 7: Dropshipping Your OWN Customer-Branded Products
Up until now, if you were a drop shipper, you loaded your eCommerce stores with lots of 3rd party products through sites like AliExpress, and you could not dropship your own products. Amazon FBA or using a 3rd party warehouse that picks, packs and ships on your behalf were the closest options.
So, dropshipping usually meant selling 3rd party products and selling your own custom products required buying a lot of inventory, housing it yourself and fulfilling sales yourself.
That has all changed now though, with the new Dropified Private Label On Demand program.
Dropified has combined the best of both worlds – the ease and convenience of dropshipping with the power and profits of selling your own custom-branded products.
Yes, with Dropified Private Label Supplements On Demand, you’ll be able to brand your own supplements, cosmetics and CBD products, but you’ll never have to touch, store or fulfill them.
You also won’t have any minimum order quantities – you can sell 1 or you can sell thousands.
That means no money out of pocket to buy supplements you may or may not sell. You only pay once your customer buys, then Dropified automated everything from there, just like normal.
Only now, you are selling your own brand of products, locking in huge margins and finally building the supplement business you always wanted.
To learn more about the Dropified Private Label Supplements On Demand program, click here now:
At the end of the day, starting your own supplement company has never been easier, and it’s a great industry to consider due to the increasing demand for health and fitness products, the repeat nature of buying and using supplements every month, and the healthy profit margins many products have.
And if you wanted the best of all worlds – custom-branded products with no minimum investment required, no inventory and all of it handled 100% for you…
…be sure to check out Dropified Private Label On Demand right now: