Starting a Supplement Business

[Mr Supplement]

Hello Everybody

Having bagged myself a business studies degree and saved up quite a bit of money I`m ready to take the leap by setting up my first organisation. Unfortunately I`ve found I need specialist legal advice which is the purpose of this post.

I know a lot about ongoing medical research into a recently discovered chemical found to have a certain effect in mammals. The research is ongoing in humans but there is already some evidence that it works the same. A market already exists on Amazon and eBay but there are relatively few competitors selling the stuff. Having checked them out I believe I could easily gain a competitive advantage over them and dominate the existing market.

What are the laws on selling food supplements in the UK? If the research is still ongoing am I allowed to market it yet as a food supplement? If the NHS uses it as a drug to treat a certain illness am I allowed to sell it as a food supplement for a different intended purpose?

How safe is Alibaba? I have identified 30 Chinese suppliers providing this substance in limited quantities to the rest of the world. How do I avoid scams using the Alibaba platform?

I use both Amazon and eBay at work. eBay is kind of easy to sell items through. But with Amazon I wasn't present when my employer originally started trading through them. What are Amazon setup fees like?

I know what FBA is on a income statement but dont understand how to use this and what the costs would be? If too much I would go eBay first then Amazon but I need to fully understand how to setup and Amazon business.

All advice would be greatly received.

 

[Scalloway]

Guidance for the use and labeling of food supplements in England.

https://www.gov.uk/government/publications/food-supplements-guidance-and-faqs

 

[Mr D]

Amazon setup fees are nil. You list items, you pay fees when it sells. You get your share of the payment sent about 7 days after last day item should have been delivered and takes a few days for payment to hit your bank. So about 3 to 4 weeks after your sale you have the money to spend.

FBA (or indeed fulfilment by any other company, there are a number) means you don't stock the stuff, you store it elsewhere (FBA means amazon store it in one or more of their fulfilment centres) then when an order is placed the item is sent to the buyer.
Amazon FBA fees for packets tend to be lower than your postage & packing costs would be.
And you don't want stuff stored at amazon too long, they have a long term storage fee every February and August for stuff that has been there over 6 months and over 12 months. Expensive.

Gaining a competitive advantage over other sellers is part and parcel of selling. They may of course seek to gain competitive advantage over you too. Why not, after all you'll be sharing a page with probably multiple competitors unless your item is branded with your own brand. Then maybe just one or two Chinese competitors on the page.

Oh and whatever you do, don't make claims that aren't backed up. Amazon have been known to block product pages that claim xxx cures cancer etc.

 

[Lawson@CBF]

Mr D has it down.

We have seen lots of products dropped from both eBay and Amazon mainly around sexual health.

We have sourced suppliers on Alibaba in the past that our clients are still using. My only recommendation would be to (if you can) go and see the production your buying into. The good ones will welcome you with open arms.