What is on-demand supplement fulfilment?
On-demand supplement fulfilment (somtimes referred to in the industry as "dropshipping") is a retail model where the retailer doesn't keep products in stock.
Instead, when a customer places an order on the retailer's chosen sales platform (such as their e-Commerce supplements website or Amazon, TikTok etc), the retailer purchases the ordered product(s) from their supplements wholesaler, who then ships them directly to the end customer.
This eliminates the need for the retailer to purchase and hold stock, manage inventory, pay for warehousing and staff, and deal with shipping, allowing them to focus instead on marketing and sales - core income-generating activities.
A truly on-demand supplement fulfilment service is one with no minimum order quantities (MOQs), as this then means that the retailer only ever has to order what they have already been paid for by their customer - no need for financial outlay on stock before making sales. This is great for cash flow.
The rise of on-demand supplement fulfilment in the UK
The e-commerce landscape is constantly evolving, and one of the most significant trends in recent years has been the rise of on-demand supplement fulfilment.
This business model has become particularly popular in the UK, where health-conscious consumers are increasingly turning to online shopping for their dietary supplement needs (not least in the post-pandemic landscape).
Here is a closer look at what on-demand supplement fulfilment entails and why it's gaining traction.
Benefits of On-Demand Fulfilment
Cost efficiency: Retailers save on the costs associated with inventory management, storage and logistics. This is particularly beneficial for small businesses and startups that may not have the capital to invest in large stockpiles of products. What's more, as mentioned above there is no requirement for financial outlay on stock before making sales. The retailer only buys what they have already sold and been paid for.
Flexibility: Retailers can offer a wide range of products without the risk of overstocking. They can quickly adapt to changing consumer trends and preferences by adding or removing products from their offerings in response to demand. The time saved by not having to handle the logistics of order fulfilment also makes this a business model that can be worked alongside a day job, or done out of hours as a side line to earn extra income.
Reduced risk: Since the supplements wholesaler handles the inventory and shipping, the retailer is not at risk for unsold stock or expired products. This is especially important for supplements, which have a shelf life.
Scalability: On-demand supplement fulfilment allows retailers to scale their business without significant (if any) upfront investment. They can start small and gradually expand their product range and customer base as demand grows. No need for premises, staff, packing / postage materials and none of the costs and complexities of bringing products to market (such as minimum order runs, regulatory compliance etc). The supplements wholesaler has taken care of this. All the retailer has to do is sell.
How It Works
Partnering with a wholesale supplements supplier: Retailers need to find a reputable supplements supplier, who offers reliable on-demand fulfilment services. Specialist Supplements Ltd offers a wide range of UK-made, quality assured products and handle all aspects of order fulfilment. They do not charge their customers for their fulfilment services and they do not have minimum orders. As the retailer, all you pay is the trade cost of the products plus the cost of postage (as if you were sending the items yourself). This is an invaluable and hard-to-find service.
Setting up an online store: Retailers can use platforms like Shopify, WooCommerce, Amazon or TikTok to create their online store. Supplement fulfilment partners like Specialist Supplements Ltd are used to shipping to Amazon and TikTok, as well as supporting their trade customers with compliance requests from those platforms during the onboarding process. They can even assist with building an online store.
Marketing and sales: Retailers need to drive traffic to their store through digital marketing, social media and SEO. Collaborating with influencers and creating engaging content can help attract potential customers.
Order processing: When a customer places an order, the retailer forwards the order details to the supplement wholesaler (dropship supplier), who then ships the product directly to the customer (with paperwork featuring the retailer's company name / logo). The retailer handles customer service and any returns or exchanges. Specialist Supplements Ltd is one of the only UK supplement fulfilment companies who offers order APIs for WooCommerce and Shopify.
Regulatory compliance: Supplements are regulated by health authorities and Trading Standards, and retailers need to ensure that their products comply with all relevant regulations. Working with well-established and reputable suppliers, such as Specialist Supplements Ltd (trading for 30 years), who adhere to Good Manufacturing Practices (GMP) and other quality assurance standards, minimises any risks to the lowest level possible.
Competition: The supplements market is highly competitive, with many retailers offering similar products. Differentiating your brand through unique product offerings, exceptional customer service and effective marketing strategies can help you stand out. This can be helped significantly by choosing a supplement supplier that specialises in "specialist" supplements that can't easily be sourced elsewhere. As the name suggests, Specialist Supplements Ltd has an off-the-shelf range of market ready products that can't be found "on the high street".
Conclusion
On-demand supplement fulfilment is a game-changer for retailers and entrepreneurs in the UK, offering a cost-effective, flexible and scalable way to enter the supplements market.
By partnering with a reliable supplier that provides a "one-stop-shop" for all your business needs and focusing on customer satisfaction, retailers can build a successful and profitable business quickly and easily in this growing market.
Create an account with Specialist Supplements now to get started.
