The supplement industry today is one of the most dynamic and competitive industries around.
Just when manufacturers thought they had formulated a great solution, which should rock the market for months or years to come, another brand comes out with something bigger and better.
In an attempt to match the new trend, the former brand goes back to the drawing board to formulate and produce something similar or better than what their competitor just unearthed.
Although great for consumers – who are spoilt with choices and alternatives – brands and manufacturers are constantly on their toes to either match the trend or risk being rendered irrelevant.
Theoretically, this chase-and-get-chased approach may seem like the right way to go. But everybody who owns or has ever run a supplement business knows that this is not a sustainable approach, as there are too many uncertainties and risks involved.
What then can brands do to stay relevant in the supplement world?
The answer lies in private labeling!
What is private labeling in the supplement industry?
Private label supplements are those products manufactured by one company for sale under another company’s brand. Generally speaking, private-label supplements are available in a wide range of industries, from food to cosmetics.
Since new supplements are constantly popping up on the market every day, private labeling, rather than trying to produce your very own version every time, is by far the best way to stay relevant.
With private label supplements, brands and business owners alike can quickly adopt new trends as they arrive so as to stay relevant in the industry.
That said, here are five reasons why you – a supplement business owner – should consider selling private label supplements.
Increase your product offering and target new audiences
If you start selling private label supplements today, you can take on as many products as you like from various brands, increasing your product offering and attracting newer audiences in the process.
For example, let’s say you’re into the skincare supplement business and you want to increase your average order value, you could offer a few popular private label skincare supplements as add ons. With these add ons, you can attract newer customers with products they’re already familiar with, and in the process, introduce them to the rest of your line.
Absolutely fast turnaround
If you’re creating your own custom supplement, your money will have to be tied down for months until the product is ready to sell. This can be a great challenge for you as a business owner, as there may be other opportunities to chase.
With private label supplements, however, turnaround time can be as quick as 72 hours, most especially if you choose a private label supplement manufacturer that keeps products in stock.
You do less work
As we’ve earlier mentioned in the introduction of this post, you’ll be doing a lot of work if you want to match every new product that pops up on the market.
Even if you have the resources needed to create your own custom supplement every time something new drops, the process can not only be long but also require a lot of effort on your part, from researching ingredients to testing, approving, and finalizing the formula. Not to forget the part where you have to hope that your customer base accepts the product.
Private labeling allows for low minimum order quantities (MOQ), which has two benefits. For one, you don’t have to pay as much per order, which is kind of a no brainer. Another benefit of these low MOQs is that you can safely test a new product out without getting stuck with a ton of excess inventory. In case a product doesn’t sell well, you can opt-out of selling it and pick another one without necessarily having to lose much money.
Expand your business and its revenue
It doesn’t matter what the nature of your supplement business had been before now; adding private label products to your line will, no doubt, take your business to another level, as you now have more options to target new customers.
Oh, and lest I forget, the potential for profit in the private label industry is huge, too!
Average monthly revenue for some of the biggest sellers on Amazon:
- Eye support $31,196
- Probiotics $123,016
- Krill oil vitamins $51,541
- Hair Oil $29,102
Interesting related article: “What is Brand Management?“