Answers to Your Top Questions About Private Label Supplements

Healthcare practitioners and business owners are starting to realize the many benefits of selling private label supplements. Understandably, specific questions and concerns around whether your business is ready for this step—and what you should do to set yourself up for success—may come up during the process.

These top questions asked by consumers planning to launch a private label brand can help clear up some of this confusion and determine whether now is the right time to start your private label supplement business.

how do i know if starting a private label supplement business is right for me?

Once you already have a legally established business, it’s time to do your due diligence by researching the market you’ll be targeting. If you’re a doctor or other healthcare provider with an established practice, this step is relatively easy, as you already know your patients’ needs and the products most likely to sell. An increasing number of practitioners are losing sales and refill orders to vendors like Amazon and other platforms. If you sell at least twelve units of any one product per month, you will likely benefit from deciding to private label.

If you're selling on an eCommerce platform like Amazon, the competition of a saturated online marketplace means you’ll need to determine your target customer and the products they want. Pricing your supplements is also crucial for success: you don’t want to price your products too high or too low. When it comes to online sales, the key is to create products that stand out just enough—not so much that they are flagged as needing additional regulatory review. 

A trusted private label manufacturer can help guide you through this entire process. At DaVinci Laboratories, we only take on clients who we believe will be successful and do everything possible to help them achieve their private label business goals.

7 questions consumers ask about private label supplements

As you get started, consider the following questions:

what are the initial costs to get started?

Initial costs depend on the manufacturer you choose for your private label supplements. Some companies ask for a start-up payment, which could be $150-200. At DaVinci, we have no upfront costs and offer free basic label design, product sell sheets, and four editing rounds on your label. Many clients find this a substantial cost-saving component, as graphic design can be quite expensive.

how many products can i and should i start with, and how many bottles of each?

Your PL manufacturer should be able to knowledgeably guide you through how many products and units of each product are likely to be successful as you get started. DaVinci Labs offers a 36-bottle order minimum of each product, although a modest $29 surcharge can lower that to 12 units if needed.

Our minimum order for eCommerce private label clients is 144 units. This amount ensures sufficient inventory so you can avoid reordering within a month or two—it can be a fatal mistake for your new private label business to go on backorder immediately. On the flip side, if a product sale doesn't ramp up as quickly as you'd hoped, you should still be able to sell 144 units without worrying about them expiring. Inventory is usually good for about 18 months. Most new eCommerce retailers start with a minimum of 144 units per product, as this allows you to test the waters before making a more significant investment.

which products should i choose, and how do i know if they'll be successful? 

Choosing which products to start with is another conversation you should have with your private label manufacturer, who should be able to help guide your product choices. At DaVinci, we receive extensive onboarding information from each new client, and one of our team members works with you to determine which products are most likely to succeed.

how do i go about making sure my labels meet fda requirements?

At DaVinci Laboratories, we offer a turnkey label-creation process that meets all FDA and FTC requirements. We advise wording your label correctly and offer suggestions on how to make it simple enough to communicate all necessary information without overwhelming and deterring customers. 

For warehouse sorting, private label supplements on Amazon require specific shipping labels per box. Other fulfillment centers may need something similar, along with ASIN or company-specific barcodes added to their labels. Depending on the fulfillment center you work with, you might need (or prefer) to create your own labels. Even if your fulfillment center offers packaging as part of their service, you can opt to include personalized custom packaging, tape, or stickers.

do i have to be a licensed healthcare provider?

You don’t have to be a licensed healthcare provider to sell private label supplements. An increasing number of business entrepreneurs are catching onto the earning potential of PL supplements. Before getting started, we highly recommend gaining a solid understanding of the market you’ll target and creating a brand that speaks to that market.

is a private label business lucrative?

The short answer to this question is a resounding yes. 

Selling directly to your patients or clients is a simple way to profit from private label supplements. You already know which products your clients need, want, and likely already use—and they trust you. Primed to purchase supplements, you can rest easy knowing they are receiving high-quality products that will provide additional profit for your business.

Online private label supplements are by far the most competitive, but they can also be the most lucrative. Selling on eCommerce platforms can change depending on current crazes—like collagen or DMG—and certain best-selling supplements tend to remain reasonably consistent, like probiotics or immune support products. If you market and source your brand well, you set yourself up for low overhead, high profits, and the ability to sell to people worldwide.

related content: trending private label supplements for 2022

how do i choose a private label manufacturer?

As with any investment, it’s crucial to weigh the cost against the potential return and partner with a manufacturer that can guide you towards success. A trusted provider should be able to answer the following two questions:

1. Am I ready to invest in PL supplements?
2. How quickly are your current clients turning around inventory?

Healthy businesses should be turning around any given product every 4-6 weeks. If a private label supplement manufacturer provides different statistics for their clients, it could be a sign that they aren’t a very good partner, or their product isn’t high-quality. Your manufacturer should also provide sell sheets and other marketing materials to ensure you have certain key marketing tools for success. 

final thoughts

While starting a private label supplement business should be done thoughtfully, rest assured that if approached strategically, it has enormous potential to significantly grow your business and be a major source of income. Find a professional PL manufacturer that will help you gauge whether now is the right time and offer guidance on how to best prepare yourself for success.