January 18, 2024
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Amazon Lends Credibility to Supplement Brands that Don’t Deserve It
Oskar
Amazon Owns Over 77% of Online Supplement Market
By now it’s old news to many that Amazon owns the majority of the online supplement market. Whole Foods Magazine reported this in 2019: “According to a 2017 Slice Intelligence survey of U.S. shoppers, Amazon accounts for 77% of all U.S. vitamin and supplement sales made online. The remainder of the vitamin and supplement ecommerce sales are almost entirely divided by vitamin and supplement specialized sellers such as VitaCost, Swanson, Puritan’s Pride and iHerb.” (source)
Amazon Carries 3 times More Brands Than Major Competitors Combined
According to Whole Foods Magazine, in May of 2019 Amazon carried 17,840 brands where Lucky Vitamins, iHerb, Vitamin Shoppe, Vitacost, Pure Formulas, Puritans Pride and Walgreens carried a combined amount of 5,880. (source)
With this incredible expansion some shortcuts were made. While Amazon is incredibly customer centric and allows free returns and free shipping, they have struggled with quality control of supplements
With this incredible expansion some shortcuts were made. While Amazon is incredibly customer centric and allows free returns and free shipping, they have struggled with quality control of supplements
No Doubt, Customers Want Amazon to Ensure Quality!
According to UL, Pew Charitable Trust, 71% of consumers want retailers to be responsible for the safety and accuracy of supplements. (source)
Amazon already knows they have a big challenge on their hands. How can they analyze the quality of thousands of supplements without huge costs?
They have reverted to creating a back door to the major quality control labs in the US. This has enabled them to catch altered Certificates of Analysis (COA). However they still trust brands and non-certified GMP factories to pick their own samples to send to the lab.
The Final Step in Any QC Process
The final step of any quality control process if so control the picking of the samples to be tested and to control the logistics of the testing. This means that Amazon cannot rely on non-GMP certified supplement factories to pick the samples meant for testing. Amazon needs to either have a 3rd party select and pick the samples or test from existing inventory already shipped to Amazon.
Reviews VS Quality Analysis
While Reviews are a Great Way to gauge what to expect they have come under fire lately. Perhaps especially for supplements, it’s hard to figure out if brands have hired bloggers to write reviews or not. Quality analysis can be very tricky if the one who is to rely on the results doesn’t control the logistics of the sample taking. This is however easily fixable! Read our PR called “Should the Supplement Industry Lend a Page from the Cannabis Industry?”
30.9% of Reviews are Fraudulent According to Fakespot
A new report from Fakespot, developer of AI technology that helps users identify problematic online reviews and sellers, shows that 30.9% of analyzed online customer reviews in 2020 were deemed fraudulent across Fakespot-supported marketplaces – Amazon, Walmart.com, more.
What is needed in the supplement industry above all else is a system that enables consumers to trust brands again. This is now completely absent. VeriGMP provides an excellent solution!
An Investment Opportunity:
VeriGMP Lab Logistics and Quality
Communication System
100% Compostable Vitamin Bottles
PureNSM Group plans to go public within a year. However we are now raising funds (Equity Crowd Funding) to disrupt both quality communication in the industry with the VeriGMP® system as well as promoting the use of 100% compostable vitamin bottles. Both projects are welcomed by many brand owners. (link to investment plans).
Amazon will eventually catch on and start rewarding quality and it will be easier with the help of VeriGMP.
The story of PureNSM Group started in 1993 when we established our supplement factory. We now have 45,000 sq ft, over $14m in revenue and over $4m in sales from our own brand of supplements. We have a fully GMP trained staff. Certified GMP by UL since 2017 and by NSF since 2014.
Oskar Thorvaldsson, CEO
PureNSM, VeriGMP, Dr. Clark Store, Bernard Jensen’s, Pick Pack America
www.linkedin.com/in/oskar-purensm
www.twitter.com/OskarThorvalds5
www.facebook.com/PureNSM
Cell Phone: 619-957-1918
Company Phone: 619-409-9077 ext 0
Press@PureNSM.com
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