It’s no secret that at the turn of the 21st century there was a significant boom in the health industry as well as in the online industry. While Google, Apple and Microsoft were hitting their biggest income years, the internet became more popular than ever and the exposure of superfoods and health supplements became more prominent than anything ever imagined. With that being said, it’s no surprise that nearly 35% of websites on the internet are related to health! We spoke with Gary Gilligan who has an online store specializing in the health benefits of limu products (a superfood that comes from seaweed) about this boom and what it means for web designers and internet marketers across the country.
According to Gary, the health market is extremely saturated right now. You’ll find more websites health products than you’ll find storefronts that sell the same products. It’s difficult to convince a family to go out and shop at a local store for their daily vitamins when they can get them for a fraction of the cost online. In fact, most of the things that are sold in local stores can be found online for much less, even cheaper superfoods are everywhere. That isn’t to say that there’s no hope in opening a store, but it’s important to know what you’re up against so that you can plan out your online or offline store.
There’s a concept that many people are beginning to catch onto called “retail arbitrage”. The concept of arbitrage is nothing new. It’s simply buying securities in one market to sell at a higher price in another market. Well with retail arbitrage you use the same concept and you apply it to retail purchases. An example of this would be to purchase products in china for pennies and then selling them in the US for dollars.
The reason we bring up retail arbitrage is because this is fairly common right now in the online world. There are websites everywhere who promote cheap vitamins or workout supplements at unbelievable prices. These websites have no overhead! They simply order the vitamins overseas and then drop-ship them to your location (in some cases they may have a warehouse that they use to ship them off). This makes it difficult for any business owner to create their own line of vitamins made in the US and then sell them locally. However, there’s a way around this.
While price and marketing can make a deadly combination to rule over most markets, positioning and branding are also very important. Gary’s company (you can check out their website here) has many products that they sell online. The reason they haven’t gone bankrupt is because they brand themselves as a quality provider. While most of these other companies focus on cheap, the demand for high-quality products increases. This is important to know when you start your company.
If you find that you’re in a neighborhood full of fast food and junk, the people around you might feel the need for something a little healthier. It’s also important to take note of the standard of living in your area (as this will tell you whether or not people are going to be interested in something healthier). When it comes to working online, by positioning yourself as a US company with high-quality products, you may have an advantage over your competitors. You’ll be able to mark up the price of your products and sell them for a lot more money.