Drop shipping supplements is in high-demand, a response to a staggering 77% of American consumers taking dietary supplements. But is drop shipping right for your eCommerce business? We’ll explore the benefits of drop shipping, third-party logistics, and how to determine which fulfillment method is right for your business.
What Is Drop shipping?
Drop shipping is a fulfillment method where a business does not keep any inventory on hand. Instead, when a customer places an order, the business contacts the supplier, who then ships the product directly to the customer. This allows businesses – across industries — to sell a wide range of products without the need for inventory storage or the risk of unsold products.
Major Advantages of Drop shipping
One of the biggest advantages of drop shipping is the low start-up costs. Since businesses don’t need to purchase inventory, they don’t need to invest as much capital upfront — making it a good choice for small startups. Businesses can also test out different products without the risk of losing money on unsold inventory.
Disadvantages of Drop shipping
There are some downsides to drop shipping. One of the main drawbacks is that businesses have less control over the quality of the products they’re selling since they’re not handling them directly.
Businesses may also experience longer shipping times and higher shipping costs, as the supplier is responsible for shipping the product to the customer.
When it comes to drop shipping sports supplements, it’s important to find a fulfillment partner that understands and complies with the Food and Drug Administration’s (FDA) regulations surrounding supplements and nutraceuticals.
Another major downside is a lack of control over the customer unboxing experience, including personalized labels and custom business branding. Along with that, drop shipping from multiple vendors may result in an order arriving to a customer at different times and in different packages.
A disjointed delivery experience could end up driving customer service inquiries because the consumer is expecting everything to arrive at once in one box.
Third-Party Logistics
Third-party logistics (3PL) is a fulfillment method where a business outsources its logistics and fulfillment needs to a separate logistics supplier. A 3PL can handle everything from storing and managing inventory to handling shipping and returns.
Major Advantages of Third-Party Logistics
One of the biggest advantages of a 3PL partner is that it allows businesses to focus on their core competencies, like marketing and sales, while leaving the logistics and fulfillment to experts who understand the ins and outs of supply chain management.
3PL providers also have access to a wider range of shipping options and can negotiate better rates, which can lead to faster and cheaper shipping for customers.
Potential Disadvantages of Third-Party Logistics
A 3PL can be more expensive than drop shipping, as businesses need to pay for the services of the logistics provider.
This means a small eCommerce company just starting (i.e., without enough sales to benefit from the expertise and cost-cutting measures of storing and shipping large amounts of inventory) may be better off with personal fulfillment or drop shipping.
A 3PL and Supplements and Nutraceuticals
A 3PL is especially beneficial in helping supplement and nutraceutical companies handle their logistics, and ship supplements fast, and adhere to FDA guidelines. Directly dealing with people’s health is an understandably highly-regulated industry, and failure to comply can lead to hefty fines and penalties.
A 3PL knowledgeable in handling supplements and nutraceuticals will have the expertise to ensure that all products are stored and shipped in compliance with FDA guidelines. They will also have systems in place to track and trace products, which is important for compliance and transparency to customers.
In addition, any supplement or nutraceutical company must ensure the fulfillment partner they work with has temperature-controlled storage, which is essential for maintaining the integrity of health & wellness products.
At Jay Group, we also offer humidity control, using Dickson, a global leader in compliance and environmental monitoring solutions. This is especially important for supplements, as too much moisture is bad for supplements, especially for water-soluble supplements.
Are Millennials and Gen Zers Getting More Health Conscious?
Drop shipping supplements is a trendy topic right now, and it’s not going away anytime soon. The reason? The personal fitness industry has seen significant growth among the Millennial and Gen Z demographics in recent years.
According to a study by the International Health, Racquet & Sportsclub Association (IHRSA), the number of fitness club memberships among 18-34-year-olds has increased by 26% since 2010. This trend is driven by a growing awareness among younger generations of the importance of health and wellness.
But why this sudden increase in health awareness? One reason is the advent and continual rise of social media, which makes it easier for people to access information about fitness, nutrition, and wellness.
There’s also a growing awareness among younger generations — as office jobs and remote work saturate these age groups — of the long-term health benefits of regular exercise and a healthy diet. As a result, many Millennials and Gen Zers are prioritizing their health and wellness, and are making a conscious effort to stay in shape.
Marketers have long noticed this trend and are capitalizing on it by targeting younger generations with fitness-related products and services. For example, many fitness companies are now offering digital subscriptions and online workout programs that are tailored to the needs of younger generations.
Along with that, many sports supplements and nutraceutical companies are now marketing their products to a younger demographic, using social media and influencer marketing to reach this audience.
eCommerce Companies Cash In
This newfound fitness enthusiasm is driving sales in the sports supplements and nutraceuticals industries. According to a report by Statista, the global sports nutrition and supplements market is expected to reach $85.7 billion by 2030.
Similarly, the global nutraceuticals market is expected to reach $368 billion by 2026, growing at a CAGR of 7.5% during the forecast period.
One reason for this growth is that younger generations are more likely to use supplements and nutraceuticals to enhance their performance and recovery. Additionally, these generations are more likely to research and invest in quality supplements and nutraceuticals to improve their overall health.
It Depends on Your Business
Both drop shipping and 3PLs have their own unique advantages and disadvantages. Drop shipping supplements is a great option for businesses that want to sell a wide range of products without the need for expensive inventory storage or the risk of unsold products.
A 3PL allows businesses to focus on their core competencies while leaving logistics and fulfillment to experts, and it can be especially beneficial for sports supplements and nutraceutical companies.
Jay Group and eCommerce Solutions
At Jay Group, we know technology plays a major role in your eCommerce company’s success. We align with your preferred platforms, marketplaces, carriers, and technology providers, including Shopify, NetSuite, and Amazon.
We’re dedicated to improving your customer experience by integrating inventory and shipping data into your online stores. Our fulfillment technology provides accurate, dependable, and real-time data, and does the following:
- Supports all of our clients’ eCommerce operations.
- Offers seamless eCommerce operations across platforms.
- Provides accurate executions across inventory, labor, and space.
- Automatically complies with federal and state regulations and standards.
- Ensures superior fulfillment results with on-time shipping and inventory accuracy rates of 99.9%.
Our 3PL fulfillment technology also facilitates automated order fulfillment and automated return processing for your convenience.
Scale your business to the next level with Jay Group. We’re an FDA-registered 3PL with order fulfillment accuracy rates of 99.9%.
