At the crossroads of holistic health and wellness-enabling eating is the burgeoning field of nutraceuticals. If you want to make a profit by selling supplements that promote physical or even psychological well-being, this might just be the right niche for you. But before you jump in with both feet, you need to learn some of the ins and outs of this business, at least one of which might come as a big surprise.

What are nutraceuticals?

“Nutraceutical” is a combination of the words “nutrition” and “pharmacology.” It refers to an ever-growing group of foods, beverages, and supplements reputed to have health-giving benefits. There are various types of nutraceuticals. 

• Mineral-based.
• Vitamin-based.
• Antioxidant-based.
• Pre- and probiotics-based.
• Fat-based.

These products can also contain a combination of the above categories.

Among other things, adherents claim that certain nutraceuticals can promote weight loss, enhance physical attractiveness, relieve arthritis pain, and even minimize the symptoms of heart disease. Given consumers’ increased focus on self-improvement in recent years, it’s no wonder that the nutraceuticals arena is so appealing to would-be entrepreneurs.

Tips for starting your own nutraceuticals company.

As with any new undertaking, the first step involves making a solid plan. To that end, you must determine what products you want to sell and to whom. Your next challenge is to investigate the most effective ways to find and attract a loyal community of buyers. Proven strategies include social media posts, blogs, pay-per-click and media advertising, direct sales, and ecommerce via a well-constructed website.

Because competition is fierce in this field, it is particularly important to find ways to distinguish yourself from your many rivals. Factors that you need to consider include pricing, the customer base you want to appeal to, and the product ingredients you will emphasize. The decisions you make concerning each of these variables will help to determine who your buyers are and what priorities are most important to them.

The next hurdle to overcome is the products themselves. If you plan to source supplements that are being made by someone else, you will need to find the most cost-effective wholesaler without sacrificing quality. If you are spearheading the development of an entirely new item, you must either make the supplements yourself — a daunting prospect — or find a manufacturer with the reputation and expertise to do the job. That will also include testing, packaging, and labeling, as well as potentially even handling the distribution of the nutraceuticals directly to the customers.

Your next task is to lay the foundations for how shoppers pay you for your nutraceuticals. Remember the surprising aspect we hinted at in the beginning of this article? You might be amazed to learn that your health supplement company will, without a doubt, be categorized as a high-risk business by merchant service providers. This is because financial institutions and other lenders are just as eager to make a profit as you are. They are suspicious of retailers selling products that make dubious or unsubstantiated claims, and they worry about the possibility of chargebacks, fraud, lawsuits, and other negative outcomes. Add to that the profusion of complex regulations and the elevated chance of fraud for online retailers, and you’re stuck at high-risk whether you like it or not.

That means you will be required to pay higher costs and fees if you want credit card processing for nutraceutical businesses. Additionally, you may find that the application process is longer and more complex. That being said, this is the unavoidable price you must suffer with in order to offer payment security and stability to your valued customers. Once you have been approved for a high-risk payment processing account, all that remains is to launch your website and begin marketing and selling your nutraceuticals.

Tips and tricks for success in applying for a nutraceuticals merchant account.

There is no question that getting approved to accept customer payments is more difficult for sellers of vitamins, beauty aids, and other health supplements. However, that does not mean that you are doomed to failure. Follow the advice below to make your path toward merchant account success a lot smoother.

• Gather a strong set of documents to be submitted to payment processors and underwriters. Include bank statements going back for at least three months, a supporting letter from your financial institution, a valid government-issued identification card, at least three months of processing statements if you have them, and Social Security or Employer Identification Number (EIN). Plus, a certificate of incorporation and/or certificates from suppliers if applicable.
• Scrupulously review your website. Pay special attention to ensure that all product labels and descriptions are accurate and that none contains dangerous substances or prescription medications. If you are offering free trials, make sure that the terms are crystal clear to minimize the chances of chargebacks. Post your shipping and returns policy clearly and prominently on your website before you take it live.
• Make your financial records as clean and transparent as possible. Pay all outstanding bills and debts, pad your bank account with as much capital as you can, and keep chargebacks to a minimum. When the time comes to apply for an account, delegate the task to the partner who has the rosiest credit history.
• Apply for more than one high-risk account. With multiple ones on board, you never have to worry about interruptions if one of them is suddenly closed down.

When you enter the nutraceuticals sector, you are definitely signing up for a risky proposition. Even so, the industry is poised for unprecedented success as it capitalizes on consumers’ continued increased focus on wellness, biohacking and greater longevity. As you navigate these exciting if choppy waters, you will benefit from having the services of a well-respected high-risk merchant account provider. This positive relationship will be one of the most effective tools you can leverage to help you to flourish and expand your operations.