Supplements E-commerce Benchmarks

Why these numbers look like this

Supplements combine strong 55% gross margins with a 14% net margin — one of the best net-to-gross ratios in e-commerce — because subscription models drive predictable repeat purchases and low 4% refund rates. The hidden cost is FDA compliance: label accuracy, third-party testing, and good manufacturing practices add 5-8% to COGS that most other industries don't face. Brands that nail compliance and retention simultaneously scale profitably because their CLV dwarfs the acquisition cost.