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Amazon Will Kill Your Health Supplement Business

When it comes to selling natural health supplements online, TRUST has never been more at the forefront of the purchasing decision.

Many direct-to-consumer health supplement companies are fast tracking the building of trust and jumping straight to the sale by selling and distributing their health supplements on Amazon.

Consumers built in trust of the Amazon brand short circuits the trust factor, resulting in a sale of their product on Amazon, but at the same time the health supplement brand has lost that customer. In most cases they lost them as a future customer forever.

The direct response marketers have always know that to make a business grow and scale, you need to own the customer. Because without direct access and a trusting relationship with that customer, you don’t have a backend and you can’t sell to that customer over and over again. Plus without ownership of that customer base you’ll never be able to build that asset to a point where you can sell your supplement business.

If those aren’t enough reasons to not focus all of your energy on Amazon or come to the conclusion that…

Amazon Is A Bad Business Model For Health Supplements…

Then keep reading…

True Amazon is a trust shortcut for many of the health supplement companies that we help scale and optimize sales for.

Many of which have their products there simply as a form of reassurance. And yes there are tactics you, as a health supplement marketer, can do to get an Amazon sale and own the customer. Like offering discount coupons and free bottles after the sale, just to name a few. It’s just simply more profitable and less effort to get a customer direct rather than go through Amazon.

And for small health supplement players, just starting out, Amazon is a great way to test the market, but this next little nugget is sure to get you thinking differently about how to do that.

The Dirty Little Secret About Amazon

What no one tells you, and what’s actually happening is this…

Amazon is the second biggest search engine. Only it’s more powerful than Google because the searches on Amazon are done by buyers not tire kickers like on Google or Bing.

Someone searching on Amazon has the intent to buy, which is why they are there, and why Amazon converts buyers so well.

And Amazon lets sellers easily put your own brand and product online to sell directly from their distribution warehouse. In fact many people are doing just that with natural health supplements and other health products.

So while many sellers are offering the same types of products, Amazon is collecting ALL of the buying data, including what sells well and what does not. In addition the seller always has to spend money on Amazon pay per click ads to get the sales machine going, often at a loss for some time before building momentum and reviews to drive more sales and thus more data for Amazon.

So after Amazon learns what sells and what there’s a market for they literally go into competition against you with their own brand.

Amazon is now in the health supplement business with their own brand “Amazon Elements”. And they have the unfair advantage because, no only do they NOT need to pay for their own Amazon ad impressions. But they also can position their sales page infinitely better than anything you can because they own the keys to the kingdom.

In fact, they are doing a better job at it. Better than they allow you to do, with their product detail page listing, even at premium seller standards.

Just take a look below at how they are showing the certificate of analysis on their supplements. Which shows the potency, purity testing and integrity of their supplements.

Here is their Turmeric supplement sales page below.

Even if you’re selling your own supplement products on Amazon you’ll never own the direct relationship with the customer.

Sure there are some black hat ways to get the email addresses of your Amazon buyers. Or you could give away most of your profit to your customers with coupons in exchange for their emails.

But once they buy on Amazon will they really ever come back to your store to buy, when you don’t have prime or top of mind positioning?

Sure, you’ll rank higher in a store that’s not yours, but you’ll never own the land in which you’re selling from in a time when owning the platform has never been easier.

The choice is yours.


There Are Three Funnels Every Health Supplement Business Needs To Build A Multi-Million Dollar Empire…

The problem is most dietary supplement companies only have one funnel. Through our work in the online health space, we’ve had the opportunity to observe hundreds of health businesses. What we’ve uncovered are the three critical funnels that each work together that make the difference between the average supplement company just selling on Amazon and a multi-million dollar health empire and compiled our findings in the book below. Click here to get the ebook delivered right to your email for FREE.

Three Funnels Every Health Supplement Business Needs To Build A Multi-Million Dollar Empire

By Bobby Hewitt

Bobby Hewitt is the founder of Creative Thirst. A conversion rate optimization agency for health and wellness companies with a specialized focus in dietary supplements. We’ve helped health clients profitably scale using our four framework growth model validated through A/B testing. Bobby has over 17 years of experience in web design and Internet marketing and holds a bachelors degree in Marketing from Rutgers University. He is also certified in Online Testing and Landing Page Optimization and won the Jim Novo Award of Academic Excellence for Web Analytics. As well as a public speaker and contributing author to “Google Analytics Breakthrough: From Zero to Business Impact, published by Wiley.

13 comments

  1. Great article, something I’ve been talking about for awhile. I’ve seen this across lots of categories, and I have concluded that Amazon is an “evil empire” as a result of competing with their vendors as opposed to providing a platform to sell on. They own every aspect of the process: production and manufacturing, customer, fulfillment, shipping/delivery, marketing/search. It’s a monster that is impossible to compete with if they come for your products.

    Are you suggesting not selling on Amazon at all?

  2. Hi Craig,
    Thanks for the feedback. Selling on Amazon is a double edged sword. On the positive side it’s a great way to build cashflow and test the market for various health condition solutions. Allowing the market to choose your niche for you. Which can be a good or bad thing. But Amazon also allows you to go to market a lot quicker and somewhat cheaper, when you look at it from a upfront investment perspective. But I don’t believe Amazon is a goo along term strategy. However it’s become a necessary part of the strategy to ensure trust, just by the fact of your product being available on Amazon.

  3. I know many people had similar feelings about digital music, and the effects it would have on the music industry. It just seems like everything from food to television is moving to this type of format. There most likely always be a platform for people to sell their own goods.

  4. That’s true Mike, there will always be a platform. But the platform has never limited potential growth like it’s currently doing today at any other point in history.

  5. Thank you for the blog post. Jones and I are actually saving
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  6. I have exactly the same concerns about Amazon that you do, but with 75%+ of all supplement purchases online happening through Amazon, it has become a necessary evil for supplement businesses. What are your thoughts about brands pages on Amazon?

  7. Brand pages make the brand feel special. They do help with conversions but at the end of the day it’s just another way to lock you in to playing their game.

  8. I’ve seen brands offer a discount if purchased on their own store (e.g. $29.99 on Amazon and $26.99 on their own store) and it’s displayed as a 10% off sale. It seems the sale is always there. Is that one reasonable play to get sales on your own page, i.e. price it high, and always have a discount?

  9. Thank you for the post. I am so disappointed. In general, we need to create a community, organization for all supplements sellers and create our own platform for sales. I am in this industry for years. The same created for medical devices and for medicines where professionals support and help each other at the same time following national regulations.
    Supplements is not strict regulated, but together we can create a better world.

  10. What do you think about the new changes and requirements for sellers of Dietary Supplements on Amazon?

  11. Markus, I think the changes Amazon is making is only going to make it harder for the little guy to compete. The future of dietary supplements is not Amazon, but your own unique brand that’s niched where you can own the customer relationship.

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