How to sell supplements on Amazon

TL;DR

• The dietary supplement market is projected to grow from $177.50 billion in 2023 to $320.15 billion by 2030.

• Amazon plays a significant role in the health product market, contributing majorly to online vitamin and supplement sales.

• High competition, strict compliance with Amazon’s regulations, and high advertising costs make selling supplements tough.

• Sellers must adhere to cGMP standards, ensure thorough testing, and follow detailed labeling requirements.

• Conduct market research, find reputable manufacturers, and ensure third-party testing for quality and compliance.

• Utilize structure/function and nutrient content claims, avoid disease claims, and follow labeling guidelines to maintain trust and compliance.

Selling dietary and other health supplements on Amazon can become a very lucrative business as the scale and number of customers buying health-related products are at an all-time high. The estimated global market size for dietary supplements was $177.50 billion during 2023 and is expected to grow with a CAGR of 9.1% from 2024 to 2030, reaching $320.15 billion in 2030 (Source: Grand View Research). Online sales are substantial within this total market size for the United States, which saw sales of $176.2 billion in 2023 (Source: Precedence Research).

On Amazon, there's a big demand for health products. It's a major hub for online vitamin and supplement sales, especially in the US. Customers are becoming more health-conscious and buying many supplements to support their well-being.

But at the same time, selling such products on Amazon is also a challenge due to its strict regulations. Navigating these will be an important way to tap into this lucrative marketplace. Sellers must make sure that they will be compliant with the policies of Amazon and the federal regulations laid down.

What is the biggest challenge in selling supplements on Amazon?

The big challenge comes in selling supplements when there is massive competition and strict compliance with stringent guidelines. There exist numerous well-established brands with massive reviews in the category of supplements. Being noticed is the challenge. New sellers need to find a way to differentiate their products.

In addition, advertising CPC on Amazon for selling supplements can be quite high, running even to a $5 per-click charge on some days. This high CPC on advertising ensures that a first-time sale for new sellers is difficult to make any profits on. The business model for selling supplements often depends on repeat purchases, meaning a seller should be ready to spend considerable amounts acquiring profitable customers who only become so after several repeat purchases.

Besides, the customer base in the Amazon marketplace is very dynamic; customers keep on moving from one brand to another because of new market entries, fluctuations in prices, and changes in packaging. This necessitates that sellers become innovative to hold these customers.

Rules, regulations, and Amazon policy for selling supplements on Amazon

ParameterRequirementManufacturing complianceProducts must be manufactured in a facility compliant with cGMPs (Current Good Manufacturing Practices) according to 21 CFR 111/117 or equivalent standards. Accepted GMP programs include Eurofins GMP, NSF/ANSI 455-2, 229 GMP, UL GMP, USP GMP, SAI Global, SGS, Intertek, TGA, SQF Dietary Supplements Food Safety Code, GFSI, and SSCI. GMP certification must be performed by an accredited third party and must be in good standing.Contaminant screenProducts must be tested for heavy metals and microbial contaminants. Based on the review of the finished product components, testing for pesticides and THC may also be required. Compliance with NSF/ANSI 173-2024 or USP standards (e.g., <2021>, <2022>, <62>, <561>) is necessary.Content claims verificationProducts must contain dietary ingredients according to the tolerances listed in 21 CFR 101.36 and 101.9(g)(3) & (g)(4).Active pharmaceutical ingredient screenProducts classified for sexual enhancement, weight management, or sports nutrition and bodybuilding must undergo testing for known adulterants as outlined in NSF/ANSI 173-2024 5.3.5.1-4.Product labeling and claimsProduct labels must include a facts panel, ingredient list, identity statement, appropriate FDA disclaimers, and relevant product warnings. Labels must not contain illegal or unauthorized disease claims.

Amazon has strict policies regarding the sales of supplements. Among these are the major requirements:

• Good Manufacturing Practices: The manufacturing process of supplements should take place in a facility that meets the requirements of cGMP by the US Food and Drug Administration to ensure the quality and safety of the products.

• Certificate of Analysis (COA): It should be received from the manufacturer through an ISO/IEC 17025 accredited testing laboratory and should show what the ingredients in the product are and the respective amounts.

• Product labeling: At a minimum, dietary supplement labels should comply with the FDA, and include a Supplement Facts panel, an ingredient list, usage directions, and contact information of the manufacturer.

• Packaging: Products should be sealed in the manufacturer's original packaging that clearly shows identifying codes, such as lot and/or serial numbers.

• Compliance dashboard: With the 'Manage Your Compliance' dashboard, Amazon sellers can meticulously keep count of all documentation to be submitted and stay, in turn, compliant with Amazon dietary supplement policies.

Not following these can cause suspension or even removal of the listing, and in some cases, the seller can lose their selling ability on Amazon.

How to find supplements to sell on Amazon

A very strategic approach to sourcing is required. Here is a step-by-step guide on how to go about it:

1. Market research

• Determine trends and demand: Use an industry-appropriate Amazon research tool to mine for current health and wellness sector trends. Sort out products that are high in demand and low in competition.

• Competitor analysis: Look at the supplement listings that work effectively. By taking a look at their products, pricing, customer reviews, or marketing strategies, you can know what works and what does not.

• Keyword research for Amazon: Make use of a capable Amazon keyword research tool to find out the most searched terms to be used in combination with dietary supplements. This will be used when you’re doing product listing optimization.

2. Sourcing high-quality supplements

• Find reputable manufacturers: Look for manufacturers who meet the cGMP requirements. Access informative databases to locate validated suppliers.

• Evaluate your suppliers: Look into their reputation, certifications, and quality control processes. Make sure they provide the necessary documentation regarding COAs and GMP Certificates.

• Negotiate terms: Communicate with suppliers on pricing, minimum order quantities, and shipping terms. A good relationship with the supplier can at least assure you that quality will not be a problem and the delivery part will be smooth.

3. Testing and compliance:

• Third-party testing: Make sure your supplements are tested in accredited labs and approved for being safe, which will go a long way in customer trust and compliance with Amazon policies.

• Packaging and labeling: Work with your manufacturer on designing package and label artwork. Then, confirm that all of it is correct and meets FDA requirements.

What types of claims are allowed in supplement listings and what are not

The claims you can make on Amazon in listings on such supplements are fairly strict so you are not misleading the consumer. Here's what you need to know:

1. Allowed claims:

• Structure/function claims: Statements that describe how a nutrient or dietary ingredient is intended to be used to affect the structure or function of the human body. For example, "Calcium builds strong bones" is a structure/function claim. "Fiber maintains bowel regularity" is another one. These kinds of claims shall be true and not misleading.

• Nutrient content claims: Claims that describe the level of a nutrient in the product by using terms such as "high in" "good source of" "contains" "High in vitamin C" "Low fat" or "Good source of protein."

2. Prohibited claims:

• Disease claims: These claims need FDA approval, and one cannot state them without it. Claims which state that the product can diagnose, cure, mitigate, treat, or prevent a disease. Some examples of these types are "Reduces the risk of heart disease" and "Treats Arthritis."

• Unwarranted claims: Sellers should not claim anything uncorroborated for their product. Sellers are supposed to make sure that each claim is based on genuine data or related research and a thorough study.

3. Labeling requirements:

• Supplement facts panel: A full list of all the elements, contained in the preparation including quantities per serving of every element.

• Directions for use: There should be clear labeling as to how and when the supplement is to be taken.

• Warnings and disclaimers: Include warnings and necessary disclaimers—side effects and contraindications.

Following these guidelines thoroughly is important for sellers to keep their listings live on Amazon and continue doing business without hiccups.

Conclusion

Selling supplements on Amazon can be very lucrative if done tactfully and with a clear understanding of the regulatory scenario. This is because there is always a roaring demand for these products, and Amazon has the largest customer base. However, the market has to be handled very carefully keeping the strict guidelines and effective marketing strategies in mind.

The procedures can be tedious at times. However, it can easily turn out to be one of the most profitable ventures within the premises of Amazon. Stay on top of the latest laws, keep refining your product listings, and hire Amazon consultants to continue building a successful supplement brand.