Establishing A Marketplace For Health and Wellness Products

The global health and wellness industry is booming, driven by a growing focus on self-care, fitness, and holistic living. Establishing a marketplace for health and wellness products not only taps into this flourishing market but also provides a platform to connect customers with trusted brands and curated offerings that promote healthier lifestyles.

One leading example of this success is iHerb, a marketplace that started in 1996 and has since become a go-to destination for natural products, including supplements, skincare, and organic food.

The journey begins with understanding who would want to create such a platform and why:

• Retailers and Distributors: Looking to expand their reach by showcasing their products to a broader, online audience.
• Health Practitioners and Wellness Coaches: Seeking to build an ecosystem that connects their services with curated products for holistic health solutions.
• Fitness and Lifestyle Influencers: Wanting to monetize their influence by offering exclusive product recommendations through a dedicated marketplace.

This blog explains why now is the ideal time to establish a marketplace, the types of markets best suited for wellness products, the business models to consider, and the steps to launch a successful multivendor marketplace platform.

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1. Why Build a Marketplace for Health and Wellness Products?

Today, more people prefer to shop online. Market trends show a steady increase in online sales within the healthcare industry. Evidently, the global health and wellness market is expected to reach $8.5 trillion by 2027, driven by online sales.

Here's a golden opportunity for businesses to tap into the market by launching a multivendor store. For businesses, an online platform provides an avenue to reach a larger, more diverse audience, increase brand visibility and sales and sell products to a targeted audience.

Shipturtle-powered multivendor marketplaces like Nutristar, Corahealth, VeganDukan have already tapped into this growing market. Other leaders include Thrive Market which offers natural and organic products at discounted prices.

2. Recommended Marketplace Types for Healthcare and Wellness Products

Choosing the right model is crucial when building a marketplace. Shipturtle can help businesses to build product-based and service-based markets for health and fitness products.  Each model has its strengths, and the choice depends on your audience and business objectives.

I. Product-based marketplace

Product-based markets focus on physical goods, such as supplements, fitness equipment, personal care products, and wellness gadgets that consumers seek to maintain a healthy life. These platforms allow consumers to purchase tangible items to improve their health and well-being. Vendors typically manage their inventory, while the platform facilitates the listing, transaction, and logistics.

Key Features

• Product Categorization and Filtering: Advanced filtering options for categories like health supplements, skincare, beauty products, fitness gear, and dietary needs, and filters for ethical certifications (organic, vegan, cruelty-free). These filters allow users to narrow down choices based on specific health goals, like weight loss or immunity boosting. Category tagging and search suggestions help customers find products quickly, enhancing user satisfaction and conversion rates.

• Inventory Management: Real-time stock tracking and restocking will give alerts to prevent over-selling and ensure product availability, supporting a seamless shopping experience for consumers. Marketplace owners can receive notifications when stock is low, enabling timely restocking and reducing out-of-stock issues. The system helps maintain order accuracy by synchronizing inventory across all sales channels.

• Logistics and Shipping Solutions: Integrated shipping solutions help to manage multiple shipping options, tracking, and delivery timelines. By offering delivery tracking updates, customers are kept informed about their product’s status. Integrating with various logistics providers can reduce shipping costs, providing competitive pricing options for customers. Shipturtle can help you with 200+ carrier integrations out-of-box.

• Customer Reviews and Ratings: Reviews allow customers to share their experiences and build trust for new shoppers through feedback. A well-designed review system can highlight top-rated products, helping users make informed choices and boosting overall marketplace credibility. Vendors can interact with reviews by thanking customers or addressing concerns, fostering transparency and brand loyalty.

• Subscription and Auto-Replenishment Options: Subscription services for recurring purchases, particularly for items like supplements or skincare, enhance customer retention and convenience. Auto-replenishment reminders ensure customers never run out of essential products, creating a seamless experience that encourages repeat purchases.

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II. Pre-owned sports & gym equipments marketplace

Example: Play It Again Sports

In a second-hand marketplace, users buy and sell pre-owned wellness equipment, such as workout gear, health devices, and yoga mats, supporting sustainability and affordability in wellness.

Key features

• Product Quality Verification: Ensures that second-hand items meet health and safety standards, building trust and supporting safety-conscious purchasing decisions.

• Buyer-Seller Communication: A chat feature allows users to ask questions and negotiate prices, enhancing transparency and satisfaction.

• Eco-Friendly and Affordability Filters: Filters allow consumers to easily find budget-friendly and eco-friendly items, catering to value- and environmentally-conscious buyers.

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III. Peer-to-Peer (P2P) marketplace

Example: Zocdoc

A P2P marketplace facilitates direct exchanges between individual sellers and buyers. It supports small businesses offering unique, often artisan-made wellness products, from handmade soaps to customized nutritional supplements, fostering a community-driven shopping experience. You can even have health practitioners list their services.

Key features

• Seller/Practitioner Verification and Quality Control: Ensures quality and safety standards for wellness products, building trust among consumers.

• Direct Messaging and Engagement: Allowing direct communication between customers and sellers fosters a personal connection and helps answer specific product questions.

• Customer-Centric Review System: Reviews highlight popular sellers and products, helping to create a trusted and community-driven platform.

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IV. Service-based marketplace

Example: Etsy (Digital downloads)

Service-based markets connect users with wellness professionals, offering services like yoga classes, nutrition consultations, fitness coaching, or mental health therapy. These platforms act as intermediaries, allowing consumers to browse, compare, and book services directly. For vendors, service-based platforms handle scheduling, payments, and client communication, simplifying business operations.

Key features

• Scheduling and Booking System: Integrated calendar and booking features allow customers to schedule appointments with wellness providers like nutritionists, yoga instructors, or fitness coaches. Real-time availability checking makes it easy for users to book sessions without back-and-forth coordination. Automated reminders and rescheduling options improve client attendance and reduce cancellations, leading to better satisfaction for providers and clients.

• Provider Profiles and Specialization Filters: Detailed profiles with provider certifications, specializations, and location-based filters to help customers find wellness experts that meet their needs. Clients can filter providers by specific needs (e.g., mental health, physical therapy) to find professionals suited to their wellness goals.

• Video and Telehealth Integration: Virtual meeting options for remote consultations allow services like telehealth or online yoga sessions to reach clients outside of local areas. Integrated video platforms support live classes, which can be recorded and accessed later, creating added value.

• Service Reviews and Ratings: A feedback system where clients can rate and review services helps build trust and informs other users about the quality of each provider. Allowing providers to respond to reviews also builds UGC in addition to rapport, helping address any concerns and maintain a positive marketplace environment.

• Payment Processing and Refund Management: Secure payment processing with options for pre-payments, cancellations, and refunds, providing a smooth experience for both providers and clients.

• Digital products: Offer subscription-based digital products, such as fitness programs, wellness apps, and educational content on health.

3. Marketplace Business Model for the Healthcare Products Industry

The business model dictates how your platform will generate revenue. Different models are suited to different types of products, vendors, and consumers.

I. Commission-based model:

This is one of the most common monetization strategies for online marketplaces. In this model, the platform charges vendors a percentage of each sale. It aligns the platform’s revenue with the success of its vendors, creating a mutually beneficial relationship. This model is popular with both B2C and B2B markets, as it provides a low barrier to entry for vendors.

II. Subscription model:

Another effective strategy is to charge vendors or buyers a recurring fee for access to the platform. It can offer tiered subscription plans with added benefits such as priority listing or advanced analytics tools. This model works well in the B2B segment, where buyers and sellers value long-term access and premium services.

III. Listing fees:

In a listing fee model, vendors pay a fee to list their products or services on the platform. This model can work well for markets that offer high-demand or niche products from specific health and wellness brands. However, it may discourage smaller vendors from joining the platform.

IV. Featured product placements:

Marketplace platforms can generate additional revenue by offering vendors the opportunity to promote their products with featured listings or sponsored ads. This can be an attractive option for vendors looking to increase their visibility and drive more sales.

Each model has its benefits, and some combine multiple revenue streams to maximize profitability:

• Thrive Market operates on a subscription model while charging commissions on certain sales.
• Meanwhile, Etsy uses a combination of listing fees and commissions, with the option for vendors to pay for featured product placements.

4. Steps to Start a Wellness Marketplace

Here are five simple steps to consider when starting a multivendor marketplace:

i. Research and planning: Identify gaps in the market, understand consumer needs, and analyze your competitors.

ii. Choosing the right platform: Go for custom development or use existing eCommerce platforms like Shopify or WordPress with multivendor plugins. Solutions like Shipturtle offer solutions to build multi-vendor marketplace tailored to each industry.

iii. Vendor onboarding: Develop a vendor acquisition strategy that includes clear communication of the platform’s benefits, transparent terms, and support for vendors during the onboarding process.

iv. Designing user experience: Make it easy for consumers to browse, search, and purchase products. Pay attention to industry-specific requirements such as ingredient filters for healthcare products or certifications for wellness services.

v. Logistics and fulfillment: If you want a successful online product-based marketplace, you’ll need to establish reliable logistics solutions for shipping and inventory management. Alternatively, if your platform offers wellness services, ensure there are seamless processes for booking and delivering those services.