Look at those gains, bro. The dietary supplement sector has seen spectacular year-over-year growth of 40%, outpacing overall e-commerce by 12%. They swear it’s all-natural, and they’re not kidding.
The epidemic has certainly increased public awareness of immunity and general health and wellness; in fact, 77% of Americans take dietary supplements and the average American spends about $56 per month on these pills.
Of course, there are alternative methods to boost immunity and health, such as at-home exercise equipment and healthy meal kits, but they haven’t been as popular. That raises the issue of whether or not supplements will continue to grow at this rate.
How have supplement companies dominated e-commerce?
After going through the supplement industry’s gym bag of secrets, we discovered that the real key to their success was a combination of three tactics:
(Serving size: one scoop of each)
- The Subscription Model
- Bundles and Stacks
- Smart Fulfillment
Please note that the use of the following techniques may provide you and your e-commerce business a sickness pump.
E-commerce: Strategy 1: The Subscription Model
Customers subscribe to weekly, monthly, or seasonal items using the Subscription Model, also known as “Subscribe & Save.” Think about content streaming services like Netflix or Hulu, recurring subscription boxes like BirchBox, and other companies that offer supplements and vitamins.
Rather of the typical one-time transaction, subscription firms provide recurring items or services. Customers have reported greater customer satisfaction and more variety in product offerings as a result of companies that have utilized this approach.
Turn Customers in Subscribers
Return clients and subscribers account for the majority of a firm’s revenue, as indicated by most businesses, which suggests that return customers provide the bulk of the income. Targeting return consumers and subscribers is less expensive than targeting new consumers since it focuses on developing brand loyalty while increasing acquisition expenses.
Gather More Fruitful Customer Data
Shopify claims that modeling and saving subscription data allows your firm to engage with your audience and produce more relevant content along the customer journey.
In actuality, many large businesses have separate marketing campaigns for subscribers and non-subscribers as well as methods to convert non-subscribers into subscribers, such as email promotions and targeted price cuts for subscription and account creation.
Sell the Same Product in Multiple Ways
Subscription marketing empowers businesses to grasp how their customers want to interact with their products and services.
Supplement companies may provide consumers with access to free delivery, early bird specials, free trials or samples, gifts with purchase, and other perks in exchange for a deeper discount.
If you want to learn more about how to establish a successful subscription business, we have a blog post for you.
Strategy 2: Bundles
The term “stacking” is often used interchangeably with “bundles,” or as they’re known in the nutritional supplement industry, “stacks.” Supplement stacks are a collection of supplements designed to help one particular health objective; for example, popular stack combinations include the ketogenic diet, weight loss, muscle gain, and more.
The majority of consumers would rather pay little more than nothing for a less-than-perfect product and walk away.
Supplement companies may leverage bundles to cross-sell their goods. Supplement businesses may bundle popular and top-selling products with ones that wouldn’t otherwise sell on their own (looking at you, L-Carnitine). You can also combine various flavors of a gut-drink together into a multi-pack if you have many options.
Customers can buy all of their nutritional requirements with a single click. Customers will also continue to receive printed deliveries, which allows us to better serve our clients and maintain control over their vitamin orders!
Some supplement companies, such as G Fuel, give their customers the option of creating their own combinations — BYOB but nutritious!
E-commerce Strategy 3: Smart Fulfillment
A lucrative subscription business model with convenient and adaptable bundling alternatives is promised by every supplement firm, but in reality, doing so is difficult without the appropriate inventory management and order fulfillment procedures.
In fact, most 3PLs and fulfillment providers simply don’t give the customization and bundling options that supplement firms want. That’s why you’ll need to work with the appropriate fulfillment provider to complement your business.
Traditional fulfillment methods, such as creating and sending custom bundles, kits, or bulk orders, can be extremely time consuming and expensive. By offering a subscription service, your brand may sell numerous items in a variety of ways while also allowing brand owners to group purchases quickly and choose many of the same product at once, making the fulfillment process quick and simple.
Safe Storage and Transport
Supplements must be kept in cold, dry places to avoid discoloration, stench, and deterioration. Ensure that your fulfillment company can take the required precautions to preserve your inventory in a safe, secure, and temperature controlled environment while also maintaining care throughout the movement.
Vitamins and supplements are taken on a regular basis at predetermined frequencies, so having a dependable delivery service with built-in resiliency is critical.
This year has shown that even the most well-known carriers, FedEx, UPS, and Amazon, are prone to delivery delays and missed delivery deadlines. As a result, supplement businesses have flocked to Launch Fulfillment in order to diversify their shipping options so that consumers receive their items on time.