How to Start an Online Supplement Business: Breaking into the Industry

If you’ve ever thought about jumping into the world of nutritional supplements, now might be the perfect time. With rising demand for dietary supplements fueled by the growing focus on healthy lifestyles and well-being, the supplement industry is booming.

Whether you're interested in selling supplements online to help people lose weight, boost their joint health, or support overall well-being, starting your own supplement business can be a highly profitable and fulfilling venture.

But before diving in, there are several important factors to consider to ensure success. This guide will take you through the steps on how to start an online supplement business, create a strong FDA-compliant brand, and explore how to make your business profitable.

Developing an action plan

Before diving into the world of selling supplements online, the first—and perhaps most crucial—step is developing a well-thought-out plan (or at least the first couple of steps).

Think of this as your roadmap: it’s what guides your decisions, keeps you on track, and helps you navigate the challenges of running a supplement business. A clear, comprehensive plan can make the difference between success and stumbling.

But a business plan doesn’t have to be intimidating! Let’s break it down into manageable steps and even have some fun with it. Here’s how you can turn your vision into a reality while thinking creatively about how to position your supplement brand for success.

What types of supplements do you want to sell?

When choosing what types of supplements to offer, think beyond generic categories. Of course, you could sell popular options like vitamin C, joint health products, or weight-loss supplements, but consider your unique take on these categories. Here’s a helpful thought process:

• Find your niche: Are there gaps in the market? For example, instead of just selling vitamin C, how about offering a plant-based vitamin C specifically for vegans or a high-potency immune booster for athletes? Narrowing your focus will help you stand out.
• Specialized supplements: Think about creating supplements that solve specific problems for a targeted group. Pregnant women or people with specific dietary restrictions are great examples of audiences who need tailored products. Consider whether you want to address niche groups like seniors, pet owners, or even busy professionals looking for specific health solutions.
• What resonates with your brand: If your brand is all about promoting natural health, you might want to steer clear of products that seem overly synthetic or processed. Instead, think about organic supplements or those made with sustainable sourcing in mind.

This decision will impact not just the time it takes to get to market, but also your level of control over product formulation and quality. Each approach has its pros and cons, so let's break them down.

Creating your own supplements with a manufacturer

This is a fantastic option if you’re passionate about having full control over the ingredients, formulation, and benefits of your product. You can make sure that your supplements are truly unique and aligned with your brand’s mission. However, creating your own supplements comes with significant responsibilities, including:

• Research and development (R&D): You’ll need to invest in R&D to formulate effective, safe, and high-quality supplements. This includes selecting ingredients, determining dosages, and ensuring your products address your target market’s needs.
• Compliance and regulations: When working with a manufacturer to produce supplements, it's important to make sure that they adhere to FDA regulations and maintain a production space that meets Good Manufacturing Practices (GMP). This involves maintaining a sanitary environment, following precise formulations, and conducting regular product testing to ensure compliance with safety and quality standards.
• Licenses and permits: In most areas, you will need specific licenses, so make sure that the manufacturer you choose complies with them. In the US, you will also need a license to sell supplements, and you must ensure that the production facility has undergone all necessary health department inspections to meet legal requirements.
• Time and costs: While you may have less hands-on control over every detail, manufacturers typically have the equipment, raw material sourcing, and quality control processes already in place, saving you the hassle and costs of managing those yourself. The initial costs can be high, particularly if you're developing custom formulations. Additionally, you'll usually need to order a specific quantity, which will require storage and logistical planning once the products are manufactured.
• Scaling up your production: Working with a manufacturer makes it much easier to scale your supplement business as demand grows. As your business expands, it can seamlessly ramp up production to meet the demand, allowing you to focus on growth without the need for additional infrastructure or investments on your end. This flexibility is a major advantage, ensuring your business can grow without the bottlenecks of in-house production limitations.

Choosing a private label partner

If you want to get to market faster or minimize risk, private labeling might be the way to go. This means working with a manufacturer who already has high-quality formulations that you can rebrand.

You’ll still be able to customize the packaging, positioning, and even some aspects of the product itself (like flavor or dosage), but you won’t have to start from scratch.

• FDA compliance and quality: Look for private label manufacturers who offer FDA-compliant products. This ensures that the products meet safety standards and are ready to go to market without additional hurdles.
• Faster time to market: Because the formulation and production are already done, private label supplements allow you to focus on branding, marketing, and customer acquisition. You can get your product online and in front of customers quickly.
• Lower upfront costs: Compared to creating your own supplements, private labeling typically requires a lower upfront investment, as you're bypassing the costs of R&D, equipment, and large-scale production.
• Reputation and trust: It’s important to work with reputable private label manufacturers. Check their reviews and ensure their products align with your brand’s values and quality standards. You’ll want a partner who can grow with you and maintain high standards as demand increases.
• On-demand fulfillment: Partnering with a private label manufacturer that offers on-demand fulfillment can be a game-changer. On-demand fulfillment means your products are only produced when orders come in, reducing the need for large inventory storage and minimizing upfront investment. This also keeps your business lean, allowing you to avoid overstocking issues and respond to changing market trends quickly. On-demand fulfillment adds flexibility, which means that you can meet customer demand efficiently while focusing on growing your brand.

Making supplements at home

While it’s possible to make supplements at home, this route comes with even more challenges. You must be prepared to navigate the complexities of regulations, licensing, and ensuring your facility meets the necessary safety standards.

• FDA and GMP requirements: Even at home, you must adhere to FDA regulations and ensure that your production setup complies with GMP standards. This means maintaining a sterile environment, following strict formulation guidelines, and conducting regular product testing to ensure safety and efficacy.
• Licensing: Depending on where you’re located, making supplements at home will likely require several licenses and permits. This can include food safety certifications, a home manufacturing license, and approval from local health departments.
• Ingredient sourcing: You’ll need to source high-quality raw materials and ensure they meet regulatory standards. This can be time-consuming, and you must be diligent about verifying the quality and purity of the ingredients you’re using.
• Limited production scale: Producing supplements at home may be feasible at a small scale, but as your business grows, you may struggle to meet demand. Scaling up will likely require moving to a professional manufacturing setup.

While making supplements at home might seem like an appealing option to reduce initial costs, it comes with regulatory hurdles and will limit your scalability. As your business grows, you may need to switch to a manufacturer or private label supplier to make sure you can meet demand and maintain compliance.

Whether you choose to make supplements yourself, work with a manufacturer, or opt for private labeling, each approach offers a different balance of control, cost, and speed to market. Think carefully about your brand’s goals, your target audience, and the resources you have at your disposal when making your decision.

Who is your target customer?

Let's face it, the term target market feels outdated, like something that belongs in a marketing textbook from years ago. As Blake Mycoskie, Founder of TOMS, has once said:

The goal isn’t to sell a product, but to create a community.

It’s not about pigeonholing people into narrow categories anymore; it’s about creating a ripple effect where a core group talks about your product and spreads the word to the masses.

So, instead of thinking about a traditional target market, think about how to get the right people talking about your product. Who are the trendsetters in your industry or space? How can you create buzz that makes your product irresistible not just to them but to everyone else they influence?

Create a core audience: Who are the first people that will get excited about your product? Maybe it’s health-conscious millennials, fitness junkies, or eco-friendly advocates. Your goal is to get these key groups talking. Once you have them on board, they’ll naturally help your product reach a broader audience.

Tap into their needs: Focus on what problems you can solve for this core audience. Are they fitness enthusiasts looking for supplements that boost performance? Or maybe they’re busy professionals who want an easy way to support their immune system. Understand their needs deeply so you can create messaging that resonates and gets them excited to share.

Create a movement: Don’t just sell a product—sell a lifestyle or a movement that people want to be part of. People will talk about products that make them feel part of something bigger, whether it’s wellness, sustainability, or cutting-edge fitness.

Research and stay agile: Instead of locking yourself into a rigid idea of a “target market,” stay flexible. Keep an ear to the ground—use social media, forums, and direct feedback from customers to understand what’s working. Let the people who love your product guide the conversation and help shape how you market it to the rest.

What’s your budget?

Your budget isn’t just about how much money you have to spend—it’s an important step that will most likely determine what type of fulfillment method you’ll choose, how you'll get the products to your customer and what will be the way you'll actually make money from this. Being realistic with your budget will guide many of your decisions and help you structure your operations efficiently. Here's what to consider:

Product development costs: Whether you're creating a custom formula or opting for a private label solution, you’ll need to invest in manufacturing. If you go the custom route, factor in costs for R&D and testing. These costs can influence whether you’ll go for on-demand fulfillment to reduce upfront costs, or bulk production if you have more capital.

Packaging: Packaging is key since it's the first impression your customers will have of your brand. High-quality, eye-catching packaging that communicates your brand’s message is essential. But your budget will also influence how much stock you can order upfront and whether fulfillment centers or in-house shipping makes more sense for your business.

Marketing: Your marketing budget is vital for getting eyes on your product, but it will depend heavily on whether you already have an audience you can monetize. If you have an audience or followers who trust your brand, your marketing costs might be lower since you can tap into that existing demand. However, if you’re starting from scratch, you’ll need a more substantial budget to create demand through digital marketing strategies like SEO, paid ads, influencer partnerships, or email campaigns.

Ultimately, your budget will shape the way you approach both marketing and fulfillment, so it’s important to figure out what your strong suits are before moving forward.

Do you want to invest more in marketing and outsource fulfillment, allowing you to focus on driving traffic and creating demand? Or, perhaps you’re more interested in putting your resources into perfecting the product and handling fulfillment in-house, giving you tighter control over quality and customer experience.

If you have the funds, you could potentially invest in both areas, but most businesses need to prioritize one over the other. This is the step where you need to decide where to allocate your budget—whether it’s in marketing to get people talking about your brand, or in fulfillment to ensure seamless delivery and customer satisfaction.

Your strengths and budget will guide this decision and set the foundation for how you’ll proceed with scaling your business.

How will you test product quality and meet FDA regulations?

When it comes to supplements, product quality is non-negotiable. Failing to meet quality standards can lead to bad reviews, customer churn, and even legal issues. Ensuring your products meet both FDA regulations and your own quality expectations is critical to the success of your brand. Here are some key steps to consider:

Are you meeting FDA requirements?

Whether you're creating or rebranding your supplements, they must be FDA-compliant. This means proper labeling, making accurate marketing claims, and guaranteeing that your product is safe for consumption.

Compliance costs, including testing and regulatory checks, should be factored into your budget from the start. Ignoring these requirements can lead to costly legal troubles down the line.

Test your supplement supplier

Before committing to a manufacturer, it's smart to order samples. This gives you a chance to test their products for quality and compliance with your standards.

If the samples don't meet expectations, don’t hesitate to move on to another manufacturer. This trial phase will save you headaches in the long run and ensure you're working with a partner who can consistently deliver the quality your brand promises.

How do you plan to maintain quality control?

Quality control is an ongoing process. Regular product testing and working with reputable manufacturers who follow Good Manufacturing Practices (GMP) is essential.

GMP-certified manufacturers have to make sure that the production process is safe, hygienic, and standardized. It’s not just about choosing the right manufacturer initially; maintaining these standards over time requires regular audits and checks to guarantee your product quality remains high.

Consistency is key

Making sure your products are consistently high-quality every time is key to keeping your customers' trust and loyalty. If you're choosing the path of private label supplements, this means working with a manufacturer who has a proven track record of maintaining quality over time. If a manufacturer struggles to meet these expectations, it’s a sign that it’s time to consider another partner.

Making it all make sense for your brand

When selecting products, always think about what makes sense for your brand. If your focus is on natural wellness, then choose products that reflect that—organic, plant-based, or free from additives. On the other hand, if you're focusing on fitness, your supplements might emphasize performance, strength, and endurance.

Here are some other things you might keep in mind to fine-tune your product selection:

• Stay aligned with your brand values: If your brand is eco-friendly, don’t just focus on what's inside the bottle—think about sustainable packaging too.
• Start small: You don’t need to launch with 20 different supplements. Begin with 3-5 core products that you believe in and expand as you grow. This helps you refine your messaging and understand what your audience responds to.
• Trends vs. being timeless: It can be tempting to jump on the latest supplement trend, but also think about long-term sustainability. Trends can be fleeting, so it’s wise to balance trending products (e.g., CBD, adaptogens) with evergreen options like multivitamins or protein powders.

Looking into what kind of legal requirements and regulations apply to selling supplements online

Before you start selling supplements, it’s important to familiarize yourself with the legal requirements and regulations that apply to your business. Depending on your business model, such as private labeling, you might not need certain permits, but it’s essential to check what's required for your specific setup to avoid costly consequences down the line.

Here’s what you need to consider:

• Licensing: In many cases, you’ll need a license to sell supplements, especially if your products address specific health concerns. However, some models like private labeling may not require you to obtain a reseller's permit or other legal permits. Be sure to verify what applies to your business model and your location (the legalities can vary by state or country) before setting up your shop.
• Product liability and claims: Be cautious with how you market your products. Incorrect labeling or making unverified claims can lead to serious legal issues. Always make sure that your product descriptions are accurate and truthful to avoid misleading consumers.
• Health endorsements: Depending on the type of supplements you’re selling, you may need to collaborate with a licensed healthcare provider to validate the safety and efficacy of your products, especially if your supplements target specific health conditions.
• Liability insurance: Protect your business by getting liability insurance. This can safeguard you against lawsuits that might arise from adverse reactions or other issues with your products. Even with all legal precautions in place, unforeseen problems can occur, so having insurance provides an extra layer of protection.

Be sure to double-check whether your business model requires additional permits, and handle legalities upfront to confidently grow your business while protecting yourself from potential risks.

How much does it cost to start a supplement company?

The costs for starting a supplement business can vary significantly depending on your approach. On average, it could cost anywhere from $5,000 to $30,000 or more. This includes everything from developing your supplements, securing licenses to sell supplements, creating packaging, and building your online store.

• If you go the private label route, the start-up costs tend to be lower because you’re working with manufacturers that already produce the supplements.
• Creating your own formulations from scratch is more expensive but allows for a unique product offering.

Can you make money selling supplements?

Absolutely! The demand for supplements online is continuously growing, and selling supplements online can be incredibly profitable.

Many supplement businesses thrive by providing solutions for health concerns like weight loss, immune support, and joint health. Many successful supplement companies see profit margins ranging from 30-50%.

Where to sell supplements online: choosing the right ecommerce platform

To succeed at selling supplements online, having a strong digital presence is crucial. Choosing the right ecommerce platform will help you effectively manage your store, from cataloging products and processing payments to handling shipping and customer service. The best platforms also support seamless integrations with dropshipping tools, which can be key for scaling your business efficiently.

Here’s a quick overview of top platforms to consider:

• Shopify: This is a popular choice for its ease of use, flexibility, and wide range of dropshipping app integrations. Shopify also offers a variety of design options and allows you to customize your store, making it ideal for businesses looking to create a unique brand experience.
• WooCommerce: Built on WordPress, WooCommerce gives you full control over your store’s customization and management. It’s great for those who want flexibility and don’t mind handling a bit more of the backend themselves. You can integrate dropshipping apps, making it a powerful option for businesses with diverse needs.
• Amazon: Perfect for reaching a large, established audience quickly. While the competition is fierce, selling on Amazon gives you access to a massive customer base. Keep in mind that Amazon's rules can be strict, and building a brand is more challenging on this platform.
• BigCommerce: If you have a larger store or plan to scale, BigCommerce is a strong option. It offers scalability with built-in features like multi-channel selling and great SEO tools, allowing you to expand without much hassle.

Pick the platform that best aligns with your business goals, tech skills, and plans for scaling. Additionally, if you plan on integrating dropshipping apps, check if your supplier has an integration with the platform.

Avoiding pitfalls when starting selling

Once your platform is set up, you’re ready to start selling supplements online. But before diving in, there are some common pitfalls that many first-time sellers face. Avoiding these will help set your business up for long-term success.

Low-quality products

One major mistake is rushing to source or create products without doing enough research. Make sure your products are FDA-compliant and meet the needs of your customers. Choosing low-quality supplements can lead to customer dissatisfaction, bad reviews, and potential legal issues. It’s worth investing in reputable manufacturers or private label options that keep track of product quality from the start.

Neglecting clear branding and messaging

Another pitfall is failing to establish a clear brand identity. If your branding and messaging don’t resonate with your target customer, it will be harder to build trust and loyalty. Be sure your packaging, website, and marketing materials reflect the values and benefits your audience is looking for.

Overlooking marketing costs

Many sellers underestimate the amount of work that goes into driving traffic to their store. Creating a strong digital marketing plan is crucial. Focus on platforms like Instagram, Facebook, and TikTok, but don’t spread yourself too thin. It’s important to know where your audience is and invest your time and budget there. Using SEO, especially the organic shopping tab, can help make your store more discoverable, but this is often overlooked.

Ignoring the power of email marketing

Failing to use email marketing is a missed opportunity. Email is one of the most cost-effective ways to engage customers. Use it to share promotions, product launches, and valuable content related to supplements and wellness. This helps keep your audience engaged and encourages repeat purchases.

Underestimating fulfillment and shipping

One common pitfall is neglecting logistics. Poor shipping experiences can lead to bad reviews and lost customers. Whether you're handling fulfillment yourself or outsourcing, make sure to offer reliable and timely shipping options to keep customers happy.

Your final steps to a thriving online supplement business

Starting a successful online supplement business takes careful planning, but the journey can be incredibly rewarding. Whether you’re crafting your own supplements or going the private label route, the key to success lies in focusing on product quality, staying FDA-compliant, and creating a unique and memorable supplement brand.

If you want to hit the ground running, private labeling is a quick and efficient way to enter the market. You can take high-quality, ready-made supplements, give them your own brand’s twist, and start selling—without the headache of formulation or manufacturing. On the other hand, if you’re looking for more control and customization, creating your own line of nutritional supplements lets you design every detail but requires a bit more time and investment.

Whatever path you choose, keep your brand messaging, customer relationships, and product quality front and center. After all, your customers want to trust that what they’re buying is the real deal, and building that trust is key to long-term success. Plus, since the FDA regulates supplements, it’s crucial to stay on top of safety and labeling standards to avoid any hiccups.

With careful planning and a strong strategy, you can build a successful and trusted private label supplement business or carve out a niche with your own formulations. The supplement industry is booming—now’s the perfect time to take the leap!