Table of Contents
- 1 What Does Amazon Consider Supplements?
- 2 Why Are Supplements on Amazon Such A Craze?
- 3 Issues You May Face When Selling Supplements on Amazon
- 4 Amazon Rules on Selling Supplements
- 5 How to Sell Supplements on Amazon: Gaining GBA Seller Status
- 6 Final Thoughts
Are you going to start selling supplements on Amazon? Whether you are an experienced seller or a novice Amazon user, this guide will show you how to get the ball rolling. This article covers everything from signing up an AMZ seller profile to submitting documentation. We will also talk about some of the tips on how to sell supplements on Amazon successfully. So whether you are just starting or striving to take your company to the next level, keep on reading!
What Does Amazon Consider Supplements?
AMZ states, “Dietary supplements are minerals, vitamins, herbs, and other substances (like amino acids or fatty acids) taken to supplement one’s diet. They usually come in tablets, soft gels, capsules, gelcaps, liquids, and powders.”
There are different reasons why Amazon FBA supplements are rapidly increasing in popularity on online channels.
Clients have concentrated more on their wellness and health in the last decade. Besides, the Covid-19 pandemic has served as a multiplier and has drastically raised the attention clients to pay to their health.
Why Are Supplements on Amazon Such A Craze?
Why do sellers get so thrilled about the whole supplements industry? When they carry out product research with third-party tools, they may be blinded by the enormous sales numbers!
Just look at the Amazon market. Below are just several examples of best-selling supplements on Amazon to get your head spinning:
Protein powder: $400k+ per month
Fish oil: $200k + per month
Collagen: $250k+ per month
Vitamin C: $500k+ per month
Vitamin D: $700k+ per month
We have quickly summarized the approximate figures on the top twenty product listings in the platform’s search results. The actual market size is much bigger as this space has hundreds and hundreds of pages.
If we take all of the items on offer and sum them up, we suppose that the total monthly sales on AMZ in this market is more than $20 to $40 million—even more! So yes, we realize the excitement about the industry size, but here is the thing: the food supplement industry is a niche with the biggest number of competitors.
Even before offering supplements on AMZ became possible, supplements, financial services, adult entertainment, and gambling were super competitive industries on the internet. And don’t think for a second that the situation on Amazon is any different—it’s not. That’s why you must develop an effective selling and marketing strategy.
Issues You May Face When Selling Supplements on Amazon
If you are interested in or are ready to start selling supplements on Amazon, you could face several issues, and you must consider all of them before jumping in.
Let’s take a look at some of the most common issues:
- Most top listings in this market are long-established players with massive reviews, which is very hard to compete with.
- Click prices can be super high. For some supplements, it can cost up to $5 per click to get any traffic in! And that’s for products that sell for between $10 and $20! It’s impossible to make a profit on the first order with such a high click price.
- Not making money on the first sale. The whole idea behind this business is to make a profit in the long haul on repeat sales. This means you have to be prepared to invest a lot of money into acquiring customers on top of having the perfect branding and marketing plan in place for customers to come back for more. Most people who start out on Amazon have a budget of a few thousand pounds and simply can’t afford to invest, say, $30 to acquire one new customer who will only become profitable after the third sale. They simply can’t afford it.
- Don’t forget that Amazon is a marketplace that you have no control over. You probably know for yourself that people often change the brands of supplements they buy. This happens for several reasons, like:
- A new and exciting supplement enters the market
- Someone selling the same supplements on the Amazon marketplace for less than what you charge
- Supplements with flashier packaging
Every time they go on Amazon to buy a product, there’s a good chance they will buy from someone else. That’s just how it is. Amazon sellers have to find ways to be better than the competition and follow all the platform’s rules to avoid suspension.
Pro tip: Use the SellerSonar product tracking tool to monitor keyword ranking, competitor listings, pricing, BSR, and more to learn the market better. Our service will help you keep tabs on your competitor’s strategies and beat the top players. Moreover, with its 24/7 alerts feature, you can be sure that your listings and safe and well-optimized.
Amazon Rules on Selling Supplements
Amazon is the largest online retailer in the world, generating $280.5 billion in revenue in 2019. Over a million new sellers began their e-commerce sales careers in the last year alone.
That’s a lot of beginners. Because of the sheer number of inexperienced sellers, it’s no wonder that there are many rules when it comes to selling on Amazon.
Here are the most important rules you’ll need to be aware of if you’re considering selling supplements on Amazon. (The full list is here)
Amazon supplements must be sealed in the original manufacturer’s packaging and be new and unused. Supplements must clearly display the identifying codes placed on the packaging by the manufacturer or distributor, such as matrix codes, lot numbers, or serial numbers
Supplements must be labeled in English with the name of the dietary supplement, the total quantity or amount of the dietary supplement (e.g., 100 tablets, 5 mg, 6 a “Supplement Facts” panel, the ingredient list, and the name and address of the manufacturer, packer, or distributor.
Supplement labels must not state that the products cure, mitigate, treat, or prevent a human disease unless the FDA approves that statement.
Detail pages must include the dietary supplement’s name, ingredient list, and an image of the product label’s ingredient list. This page must not state that the products cure, mitigate, treat, or prevent a human disease unless the FDA approves that statement. Detail pages must not state that the supplements are “FDA approved.”
Products and ingredients
Supplements must not be named in an FDA recall or safety alert or contain ingredients prohibited by the FDA. An FDA warning letter must not identify supplements as adulterated or misbranded. Supplements must be safe for use and must not be a product that the FDA has determined presents an unreasonable risk of injury or illness. Supplements must not contain controlled substances, such as Cannabidiol (CBD).
How to Sell Supplements on Amazon: Gaining GBA Seller Status
Some product categories on Amazon are gated. That means you’ll need to go through a special approval process in order to sell FBA products within those categories. Once you’re approved, your private-label supplements will be eligible for the Fulfilled by Amazon (FBA) designation. This unlocks the Prime Shipping option for buyers. With one- or two-day shipping now considered the norm, unlocking this benefit can significantly increase sales of your private-label supplements on Amazon. Here’s how to get started.
Step 1: Sign up for a professional seller account.
Without a professional account, there’s no moving forward. And if you already have a seller account on Amazon, it has to have a clean track record. That means no red flags like high numbers of canceled orders or missed product delivery targets.
Step 2: Submit a qualified invoice from a supplement manufacturer or distributor.
Amazon wants to make sure you’re getting your supplies from reputable sources. The invoice copy you submit must include the following components:
- Your name and address are an exact match with what’s listed on your Amazon seller account.
- The invoice is dated within 180 days from the date you applied to Amazon to sell in the gated dietary supplement category.
- 10 or more product units were purchased.
- The name and address of the manufacturer or distributor are included.
Step 3: Send photos of the product.
When applying for a gated product category, you only need to submit a request to sell one product to gain access. The product you selected should be on the wholesale or distributor’s invoice mentioned above. You’ll need to submit photos of all six sides of the dietary supplement container. They need to be actual photos taken by you, not pulled from the internet. The photos need to clearly show the manufacturer’s name and the product name, model number, or trademark.
Step 4: Submit additional documentation.
Lastly, Amazon also requires the submission of one of the following documents:
- Certificate of Analysis (COA)
- Good Manufacturing Practice (GMP) Certificate
- 510(K) Premarket Notification
- Screenshot of FDA registration
Depending on the product you’ve chosen to submit, tracking down this documentation may require visiting the manufacturer’s website or reaching out to the manufacturer or wholesaler for help.
The lists in this article might seem lengthy, but following them gives you a great chance to earn high revenue by selling supplements on Amazon. Seeing how this is one of the most-visited, most-trusted platforms by millions of users worldwide gives you an opportunity for a wide reach and amazing lead generation. At the same time, it’s important to understand how Amazon works and how to make your listing stand out from the competition.
SellerSonar is here to help you every step of the way. Register for a free 90-day trial to see how it works.