Dropshipping as a business model can be pretty controversial. Some people claim that dropshipping is dead and it’s impossible to make a profit while others make a healthy living with their dropshipping ecommerce stores.
As a company that allows you to private label and dropship supplements directly to your customers, we’re a little biased when it comes to our opinion on dropshipping. That’s only because we’ve seen it work and we’ve seen many customers succeed at building and growing their own supplement companies using this business model.
Many people have the misconception that dropshipping is all about selling cheap products from manufacturers in China. Some see it as a get rich quick scheme while others call it a scam. In reality dropshipping is a business model that can be used to grow your own supplement business.
There are a few different ways that you can use dropshipping to grow your supplement business but first let’s discuss some basics.
What is Dropshipping?
There are a lot of questions and misconceptions when it comes to dropshipping, especially if you’re new to the industry. So what exactly is dropshipping?
According to Wikipedia, “Drop shipping is a supply chain management method in which the retailer does not keep goods in stock but instead transfers the customer orders and shipment details to either the manufacturer, another retailer, or a wholesaler, who then ships the goods directly to the customer.”
Basically your customer places an order, you send us the order automatically thanks to software, we ship the order and you pay for the inventory and shipping. All you have to do is market and sell the supplements you decide your store should offer.
Is Dropshipping Profitable?
Just like any other business model the profitability is really up to the person running the business. We have many, many customers that run profitable supplement business using dropshipping. But there are also people out there that have started a dropshipping business only to see it fail.
Remember that dropshipping is just a business model, it’s not a magic bullet that guarantees success. Keep in mind all the costs as you set your prices – cost of goods sold, shipping, marketing, website and merchant account fees, etc.
3 Ways Dropshipping Can Help You Grow Your Supplement Business
There’s more than one reason and more than one way that dropshipping can help your supplement business. Whether you’re just starting out, trying to grow your business or have an established company, you can use dropshipping to your advantage.
One of the biggest advantages of the dropshipping business model is that it is very inexpensive compared to other businesses. If you don’t have a lot of money to get started dropshipping is definitely a good option for you. This is probably the top reason dropshipping has exploded in popularity.
Dropshipping supplements allows you to start selling products without actually having to buy any inventory at all. This also means that you don’t have to pay for storage for your supplements as well.
This allows you to expand your product line much more quickly. With traditional private label supplements you have to buy a minimum of at least 50 units which makes it difficult to expand your product offering quickly. With dropshipping you can offer a full line of products quickly because you don’t have to buy the inventory.
Scaling your business can be difficult. Keeping track of all of your inventory and packing and shipping all your own orders can be time consuming and difficult to keep up with.
From hiring employees to leasing out enough space, growing your business can be expensive. By dropshipping your supplements instead you get to outsource all of that labor instead of taking it on yourself. This is especially useful in the supplement business as sales fluctuate seasonally and you don’t want to have to hire and fire people as your sales fluctuate.
Additionally, with dropshipping you don’t have to manage your own inventory levels. Managing the inventory of a growing business can be difficult. It’s easy to buy too little and stock out or buy too much and interrupt your cash flow. Dropshipping means you don’t need to worry about either of these potential problems.
It can be expensive and time consuming for an established company to test out a new product. Most of the time it’s necessary to do extensive research and execute elaborate campaigns. Unfortunately even when you do everything correctly a new product can still flop and you’re stuck with all those supplements you can’t seem to sell.
Dropshipping takes the risk out of launching a new supplement. You can quickly add new supplements to your product line and see how they perform immediately. This allows you to hop on new trends right away with no need to delay because you’re doing research or putting together a big campaign.
Unlike every other supplement dropshipper, On Demand Fulfillment allows you to private label your supplements and then ship them directly to customers. This is essential when you’re trying to build a unique brand. Plus we keep over 100 of the most popular supplements stocked in-house!