Private Label Supplements

How to Dropship Supplements (Updated 2020)

Want to start a supplement business without actually owning or storing any inventory? This principle is called drop-shipping! 

The way it works is quite simple. An online retailer sells its products on the website but never has any physical contact with the actual inventory.  Instead, a third-party takes care of manufacturing, storing, and shipping products on behalf of the online business.  Thus, the online business only decides on a product, creates the online store, and leads the marketing efforts. 

The sale of products through the drop-shipping method simplifies the e-commerce implementation considerably. In contrast to the typical online stores, the products no longer have to be bought and stored in large quantities, adding high costs to the operation. This way, the sellers lessens their financial risk since no more substantial investments have to be spent on these products. 

What is perhaps best of all is that the customer who buys a product online does not notice the drop-shipping method and does not know that it is shipped from another location.

This makes it possible for many people to fulfill the dream of running their successful online store with minimum upfront investment.

Drop-shipping – “Small Risk – Big Reward.”

In a nutshell

If you want to start a drop-shipping supplement business, there are four main steps:

  1. Find the right product, which covers quality and demand, 
  2. Select a manufacturer that takes care of production, packaging, and shipping, 
  3. Then build a professional online store that can attract customers and generate purchases,
  4. Finally, attract your customers with the help of online marketing.

When the online store is finished, and the drop-shipping service is in use, the shop is mostly an automated process. This enables an entrepreneur to run the online store independently with little to no effort. 

Drop-shipping is a great way to make many people’s dreams of an online store come true, and it is as easy as possible. Less risk, less investment, less work – all this through the method of drop-shipping!

Why launch a Supplement Brand

The Health and Supplement Industry is booming, with a value of approximately $133 Billion in 2016, and the numbers are rising. Projected CAGR (Compound Annual Growth Rate) shows these numbers will increase by 9.6% until 2024 (Source: nutrasciencelabs). 

Customers are getting more and more health-conscious, fast food companies are losing profit compared to previous years, and vegan/vegetarian products and personalized health alternatives are in high demand. 

No surprise then that the Supplement Industry and personalized health are gaining more and more popularity, and the numbers of new companies and products are increasing.

Not only is the demand high right now, but it’s as easy as ever to start a business. A personalized drop-shipping supplement brand can start from zero and achieve rapid success due to increasing popularity and low website and advertisement costs. 

Since personalized supplements play an essential role in various businesses, like the fitness, health, and vegan/vegetarian industries, they are only getting more popular every month.

The market for Personalized Supplement Brands is huge

The question is, why create a Supplement Brand if there are so many on the market already? The key is to create a unique brand, focused on a specific niche. The benefit of Supplements is that there are immense opportunities to create a unique combination of Supplements to address the customer’s needs and wishes.

Examples of Supplements with high demand

A study by the Food and Drug Administration (FDA) estimates that there are currently over 29,000 different Supplements on the market, and the numbers are rising. As a retailer, this number can be terrifying and intimidating, but in fact, it opens many doors to create a unique and personal combination of Supplements to sell in a specific market for your niche. To clarify, here are some possible examples:

  • Fitness Supplements – Protein and Post Workout recovery
  • Vegan and vegetarian Supplements – Creatine and B12
  • Health, Weight-loss and Beauty Supplements – Antioxidants and Fiber

Supporting the customer’s health as a business idea

With rising numbers of Vegans and Vegetarians, the consciousness about peoples’ health is not just a sign of more awareness: it also opens new doors for business opportunities. The demands for specific fitness, health, and vegan Supplements are high, especially considering the support of scientific studies.

Using Supplement Studies to boost your business

One of the significant advantages of starting a Supplement business in this day and age is the vast quantity of studies that underline Supplements’ effectiveness in day-to-day use. Compared to many other companies, the Supplement Industry has a constant demand for new products due to consistent consumption. 

Studies show that it takes around six weeks for a Supplement to show results, whether it be beauty, fitness, or health-related. 

For example, in some cases, Biotin can take around three months for the customer to see a positive effect on hair and nail growth. In comparison to other Industries, the Supplement Industry is, therefore, in continuous demand for products.

Finding the right niche for your personalized Supplement Brand

To create a successful Supplement Brand, you have to find the right niche for your product, which, thanks to the internet, is as easy as ever! Through Internet Ads, Online Marketing, and Social Media, the chances of reaching a specific group of people, to generate sales and attract customers, is done with only a few clicks. 

Finally, to start your personalized Supplement Brand, create a unique product, and generate your first sale!

Four easy steps to find the right product for your personalized Supplement Brand

The first and most essential step in starting your personalized supplement business is choosing the right product. This sounds like an easy task, but the wide variety of possible supplements might seem overwhelming. We want to bring you closer to your best choice of products with a step to step guide.

Misconception about selecting the right product for your personalized Supplement Brand

The most common misconception about selecting the perfect product for your Brand is starting with the research. The fact is, how do you want to know which product to go for when you don’t even know what your costumers need? It’s not sufficient to choose the product first and then find the right customers; that’s why you need to identify your niche first.

To find the right product, you have to find the right niche.

There are already around 29,000 supplement products on the market; the secret to success is, therefore, to find a niche that’s frequently in need of new products. Even though you want to sell many products, have many customers, and let your business be a success – the key is to define your niche as concrete as possible. If you have a detailed description of your customer, it will be easier to identify your customer’s needs. If you are trying to sell fitness supplements like protein bars with “Whey” (dairy) to a vegan audience, you won’t succeed. 

So, before focusing on finding the right product – find the right niche.

Step 1: To find the right product ask yourself these questions:

Do you need help finding your niche or where to start? Ask yourself the following questions. These questions will help you identify your “perfect” customer, identify what this customer wants, and finally, how to archive it with the right personalized supplements:

  • Who is my customer?
  • What results does my customer want?
  • What does my customer need?

Step 2: What are the possible products to fulfill my customers’ needs?

After you have answered the previous questions, then it’s time to focus on the actual products.

Start the research and find out which products are out there to fulfill your customer’s needs. Read articles, studies, and check out other supplement brands to see on what aspects they focus.

If you need some inspiration for possible supplements to sell, these products are currently on high demand:

  • B12 (for Vegans and Vegetarians)
  • Protein – Bars, Pills, Shakes, Powder (for Athletes)
  • Green Coffee Bean Extract (for Weight-loss)
  • Biotin (for Hair and Nail Health)
  • Vitamin D (for Health)
  • Probiotics (for Gut health)
  • Fish Oil (for Health and Skin)
  • Creatine (for Fitness and Beauty)

We recommend using an index for Nutrition and Dietary Supplements. Focus on supplements that are scientifically proven and do your research with the help of scientific articles. This kind of research has two significant advantages: First, you’ll only focus on supplements that are proven to be effective, and second, you can use the research for marketing your products.

Step 3: Focus on quality.

Quality is one of the main aspects of a long term successful Supplement Brand, due to the high number of products on the market and the fact that it has to be approved by the Food and Drug Administration (FDA): quality is critical. 

Without positive results, you’ll lose clients consistently. Come up with a personalized value proposition for a supplement that you can be proud of.

Step 4: Improve your personalized supplements

Did you discover a supplement that fits your niche and can fulfill your customer’s needs? Congrats, but your work isn’t done yet. 

The following is the most important part – make it unique! Focus on Product Development to optimize and personalize your Supplement. You won’t succeed if you do what everyone does but instead focus on creating your personalized supplement Brand.

How can you optimize your customer’s results? Can you add other ingredients to make your personalized supplements more effective? Or more pleasant to use? What is different about your Brand in comparison to the other supplement brands? You’ll find the right product with research and brainstorming!

 

Sourcing your Products

Now that we’ve completed the brainstorming part, it is time to find the right Manufacturing Lab. An ideal lab that will help to create your personalized supplements. This part is significant because choosing the right and trustworthy Lab equals your brand’s quality and success. You won’t be able to check each product individually; therefore, it is essential to have a Manufacturing Lab that fulfills all the requirements you set up.

How can you find a perfect Manufacturing Lab, and why is personalization so crucial in this day and age? We will focus on answering all the important questions regarding the Manufacturing Lab and the Personalization in this article.

How to find a Manufacturing Lab

There are three options on where to securing the perfect Manufacturing Lab for your product. These options are:

  • using an official Manufacturing Lab, 
  • a private Manufacturing Lab, or 
  • building your own Manufacturing Lab. 

Which option is the best for your personalized supplements?

Official Manufacturing Lab

Using one of the official and public Manufacturing Labs is the cheapest option but has one colossal deficit: You have no room for personalization! You get a product that’s also sold by hundreds of other sellers. It’s not unique; it’s no different what everyone else sells, and it’s just another product off the assembly line. You can find these official Manufacturing Labs in the Manufacturing Lab Index. We would recommend that you choose a Manufacturing Lab in your area, so you can check on the process and meet with the owner of the Manufacturing Lab in person.

Private Manufacturing Lab

If you’re willing to invest a bit more money on the actual Product Development – The private Manufacturing Lab is the best choice for you! In this case, we would also recommend that you’re looking for a personal Manufacturing Lab in your area. 

This way, you can meet up with the manufacturers, witness the progress in person, and be part of the fundamental aspect of creating. In comparison to the public Manufacturing Labs, the private Manufacturing Labs have a considerable advantage. 

You can create YOUR product! It gives you the freedom to create a personalized and unique product that’s not on the market yet, increasing the chances of success.

Building your own Manufacturing Lab

We wouldn’t recommend building your own Manufacturing Lab, especially not in the supplement industry, because it will take a lot of effort, time, and money. You have to be familiar with FDA Compliance.

What is the FDA?

The FDA (U.S. Food and Drug Administration) is a federal government agency, and their job is to test and analyze products in the field of Food, Supplements, and Medicine. 

They test the product before and determine if it is allowed to be sold in the U.S. Market. Therefore, your Supplements need to be FDA approved. Not just that, but the FDA regulations can vary between states, in this case, check the FDA Compliance.

Fortunately, a private label service such as Capsule provides pre-approved FDA solutions. 

Focus on FDA Compliance

If you want to offer your personalized supplements to your customers, The FDA must approve your products. At least if your goal is to sell your products in the States. If you want to sell your supplements in different countries, the requirements might vary.

How can you check the FDA Compliance?

Do you want to know how to check the FDA Compliance? We can recommend checking out the current “Inspection Classification Database” to get further information. If you still have questions, don’t hesitate to contact the FDA directly through E-Mail: FDAInspectionsClassifications@fda.hhs.gov

Personalization – Make your product unique!

We would highly recommend using a private Manufacturing Lab. Using a private Manufacturing Lab gives you the freedom to create your UNIQUE product, rather than reselling what many supplement retailers already do. 

By just reselling a generic product, you won’t be able to make a name for yourself because your work won’t be worth remembering. But if you define your niche and know what your customers want, you’ll have the chance to create a personalized product and have long-term success with it. 

With a private Manufacturing Lab, you also have the opportunity to make adjustments to your supplements if you realized, due to your customers’ feedback, that something about it could be optimized. This way, you and your brand can grow thanks to your customers’ criticism and feedback.

The future of supplement personalization

The Supplement Industry is a broad field that is worth exploring! It opens many doors to different kinds of areas that will help your customers to fulfill their needs. 

Why limit yourself and your brand? It’s more lucrative to research, find out what your customers want, and then sell this personalized product. More and more people see the benefits of supplement personalization; therefore, it’s a business idea for the future!

 

Managing a Company sounds like a huge responsibility, massive costs, and a significant time investment, but is that also the case if you use the Dropshipping method? In this article, we will take a closer look at how to manage a Dropshipping Company!

What are the costs that you have to expect?

One of the main advantages of using Dropshipping is that you won’t need to buy your products in bulk, rent a storage place, invest time and money in packaging and shipping. Instead, focus on the actual Online store and marketing your products. 

Therefore, it is as easy as ever to start your own company, even without a lot of start capital. But how much money are we talking about?

Startup Costs and Ongoing Costs

Online Shop

To start your new successful business, you’ll need an online store. Even though there are many free or cheap options to create an Online Shop, we recommend personalizing your online shop, rather than using a simple theme. This way, you can use your store to attract the customers that you want.

Shopify offers the easiest and fastest way to launch an eCommerce store. But it takes both a monthly subscription fee and a percentage of your sales in commission.

On the other side, WooCommerce might be a bit harder to set up, and you might need help from a web developer. But once you have set up your store, you won’t need to share any fees.

Therefore we would recommend starting with Shopify and once you feel confident and have grown your business, switch to WooCommerce or any other self-hosted alternative.

Supplier Fees

How much you have to pay as a fee to your supplier depends on the supplier. The supplier will either charge you a monthly cost of using the service or charge you for every sale you make.

Marketing costs

To get the name of your brand and your product out there, you’ll have to invest a specific marketing budget. Depending on your niche and where your customers are most active, advertising and marketing costs will vary. 

Possible Marketing costs could be Influencer Marketing, Social Media Marketing, E-mail Marketing, or giving away a few of your products for free.

Other business expenses

You also have to think about other expenses, like a business credit card, taxes, or payments for individual certificates.

Getting your supplement to your customer in three easy steps

The supplement business is booming; if you want to be part of it, but you don’t have much time, much money and would prefer a more automatic way of selling, then the Dropshipping method is perfect for you! In only three easy steps, you can get your supplement to your customer!

Determine your customers’ supplements

You have to determine your customers’ supplements, so your supplier knows which products to ship as soon as you make your first sale.

Order the product (automatically)

Your customer orders the product through your website. You will get a notification each time you make a sale. The whole process is automated, and you don’t have to do anything and don’t need to process the order.

Sit back!

Sit back and relax because the supplier will process, pack, and send out each order; therefore, you have a lot less work and safe money that you can instead invest in marketing and research.