TABLE OF CONTENTS
Wellness is a popular trend emerging in America. Instead of relying on traditional medicine and vitamins, many are turning to alternative methods to maintain their health, beauty, and general well-being. Essential oils and nutraceutical supplements are popular buzzwords when thinking of this health craze. In fact, the nutraceutical industry is projected to grow to $375 billion by the year 2025. Of the popular types of nutraceuticals, the fat-soluble variety have gained traction for their benefits in the body. But why exactly are fat-soluble nutraceutical supplements so popular in comparison to other supplements? Keep reading to find out!
Why Fat-Soluble Nutraceutical Supplements?
When looking for the perfect supplement, most consumers have an idea of what they’re looking for in their head. Some are searching at the suggestion of their physician while others seek to improve some facet of their well-being. No matter the motivation, fat-soluble supplements are a common option in the nutraceutical space. But what exactly are fat-soluble supplements?
How Does It Work?
There are two ways of absorbing nutrients from vitamins: either through water or fatty tissue. Those wanting varieties of vitamins B or C look to water-soluble supplements. Likewise, varieties of vitamins A, D, E, and K are notable for being fat-soluble.
When a supplement is consumed, it is broken down in one of two ways. For a water-soluble supplement, all it takes to dissolve is water. Once dissolved, nutrients are absorbed in the body.
For fat-soluble supplements, fats and oils break down the vitamin. This means preexisting fats in the body aid in the absorption of nutrients. After being broken down, the vitamins are then stored within fatty tissue found in the body.
Why Fat Solubles
Fat-soluble supplements are popular because they cover vitamins that are important in regulated amounts in the body. Vitamins A, D, E, and K are instrumental in many important functions in the body. In fact, many of these vitamins are lacking in the public’s diets. Animal-sourced food products tend to be the best source of these particular vitamins. In fact, they’re absorbed into the bloodstream at a faster rate when taken with fats.
While vitamins A, E, and K are relatively easy to source through a balanced diet, vitamin D is an important nutrient that is more difficult to come by through diet. This brings many who are vitamin D deficient to seek out fat-soluble supplements.
Starting your Business Selling Nutraceuticals
Products that fall under the umbrella of nutraceuticals include supplements based on: antioxidants, vitamins, minerals, prebiotics, probiotics, and fat. Nutraceutical products consist of dietary health supplements and natural remedies to improve some aspect of the user’s health.
Because your customers will be shopping online, you’ll want to ensure your business model accommodates for that. Not having a retail location will be a disadvantage in the fact that there are no sale representatives to speak with. Although live chat support is certainly an asset to consider, there is a disconnect that comes along with any eCommerce merchant business. This is especially true for industries like nutraceuticals that tend to be heavy on word-of-mouth recommendations.
Principles to Consider
Before launching your online nutraceuticals business, there are a few concepts to consider.
- Filling a Void in the Market
Creating a product that fills a void in the marketplace and that people need is a great jumping-off point. When creating your product, consider the features that customers like or complain about. Study your target audience thoroughly and understand why they make be seeking alternative supplements. Are they mainly referred by their doctors or are they seeking out answers for themselves?
- Target Audience
Are you targeting retirees, young adults, Millenials, or seniors? Familiarize yourself with the 80/20 rule or the Pareto principle. At least 80% of your profit derives from 20% of your clients. Only a small part of your clients are loyal fans that keep your business flourishing. Apply these ideas to your business strategy.
- Product Design
Eye-Catching designs make your product stand out. A major part of your customer’s decision-making process depends on your label design. Between 40%-70% of buying decisions occur during the point of sale. Another way to make your product unique is to source specialty ingredients. Manufacturers of nutraceuticals offer different vitamin mixes you can sample and choose from.
- FDA Compliance
Your product labels need to be compliant with the FDA. You’ll want to research corresponding guidelines when designing your labels and other packaging.
- Market Analysis
Be sure to run a competitive analysis so you know the industry climate. Review the nutraceutical market analysis to see where the industry is projected to go. Develop a customer acquisition plan accordingly and decide how you will establish a customer base. Your acquisition plan may include inbound marketing such as: blogging, producing videos, or running a tradeshow booth.
Merchant Services for Nutraceuticals
By industry, many traditional processors shy away from nutraceutical businesses. Ingestible products that are not widely accepted by the public tend to be a red flag and high risk for processing banks. Considering nutraceuticals are not scientifically backed, reputational risk is also a concern for potential processors. This means that you will need a high risk payment processor to support your merchant account online.
Industries like nutraceuticals also get flagged for significant chargeback rates. When it comes to wellness and vitamins, there is no guarantee that the solution will produce the desired effect. In these cases, depending on your customer support policies, some customers might choose to go straight to your bank and ask for a refund. This action will result in a chargeback. Too many of these and your fat-soluble nutraceuticals business will suffer, however there are steps you can take to avoid excessive chargebacks on your account.
The obvious problem here is that credit card processing is necessary to run a successful business. Since you are running an eCommerce store for your fat-soluble nutraceutical supplements, a nutraceutical merchant account is the best option. High risk merchant services providers know the best methods on how to handle industries that might be considered challenging. Seeking a high risk merchant services provider is the most efficient way to get your nutraceutical business processing credit cards quickly and securely.