Hot Supplement Brands Face Growing Pains on Amazon
The supplement industry has never been hotter — but selling on Amazon? That’s another story.
In 2025, wellness and supplement brands are seeing booming demand, but behind the glossy product pages lies a growing problem: Amazon is becoming harder — and costlier — to navigate than ever before.
From skyrocketing ad costs and algorithm volatility, to fake reviews, product hijacking, and inventory headaches, even top-performing supplement brands are hitting roadblocks.
The Boom: Supplements Are Soaring — But So Is the Competition
The global dietary supplement market is projected to hit $327 billion by 2030, according to Grand View Research. And Amazon dominates a big piece of that pie, with over 77% of online supplement sales in the U.S. going through the platform.
So why the struggle?
Because success on Amazon is no longer just about having a good product. It’s a complex game of ads, algorithms, and trust — and the rules keep changing.
1. Advertising Costs Are Out of Control
Amazon Ads (formerly AMS) are essential to getting visibility — but in 2025, they’ve become absurdly expensive.
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Cost-per-click (CPC) in the supplement category has jumped 30–50% YoY
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Brands are now paying $3 to $7 per click — with conversion rates as low as 5–10%
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Most startups spend 30–40% of revenue on advertising, cutting deep into margins
“We're spending tens of thousands on PPC just to stay visible. It feels like a treadmill that never stops.”
— Olivia James, CMO of a mid-sized supplement brand
Source: Marketplace Pulse – Amazon CPC Report
2. Amazon’s Algorithm Is a Moving Target
Amazon’s A9 algorithm determines search rankings, Buy Box ownership, and suggested listings. But it’s constantly evolving — and increasingly influenced by:
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Ad spend (pay-to-play)
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Fulfillment method (FBA > FBM)
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Review velocity and “helpfulness” votes
Many small brands are finding themselves buried under legacy giants or aggressive Chinese white-label brands that know how to game the system.
“The algorithm now rewards aggressive tactics and punishes small brands that play clean.”
— Chris Rawlins, E-commerce strategist at SellerTools
3. Fake Reviews & Review Hijacking Are Still Rampant
Despite Amazon’s public crackdown, fake reviews and review hijacking remain a major problem — especially in wellness.
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Competitors post false negatives to sabotage ratings
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Some unethical sellers hijack ASINs and replace ingredients or formulas
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Fake positives from bots and paid reviewers still distort rankings
In the supplement category, trust is everything. A single bad review (real or fake) can kill conversion.
📚 FTC Cracks Down on Fake Reviews – Official Statement
4. Inventory and FBA Storage Headaches
Amazon’s Fulfilled by Amazon (FBA) program used to be a blessing. Now? It’s a logistical headache.
In 2025, brands face:
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Strict inventory limits
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Rising FBA storage fees
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Delayed receiving times at fulfillment centers
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Expiration date regulations on ingestible supplements
For wellness brands that depend on fresh stock, rapid delivery, and temperature control, this can be a dealbreaker.
5. Brand Protection Is a Full-Time Job
With success comes imitation. Many supplement brands are now battling:
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Counterfeit products sold under their listings
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Unauthorized resellers discounting and damaging brand equity
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“Piggybacking” sellers who copy listings and confuse customers
To fight back, some are turning to Amazon Brand Registry, transparency barcodes, and legal takedowns — but it’s time-consuming and costly.
“Every week, we're removing knockoffs. It’s a war zone.”
— Ashley Patel, founder of a vegan wellness brand
The Human Side: Burnout & Brand Fatigue
Beyond the numbers, founders are emotionally exhausted. Building a wellness brand is hard enough without fighting Amazon’s ever-changing landscape.
Many are now:
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Diversifying to Shopify, Target, iHerb, and wholesale
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Pulling ad budgets back to invest in owned media
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Reconsidering their dependence on Amazon entirely
But It’s Not All Doom & Gloom
Some brands are adapting — and thriving — by shifting strategies:
What’s Working in 2025:
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Building off-Amazon audiences via TikTok, email, and Instagram
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Using Subscribe & Save to boost retention
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Leveraging Amazon Live + influencers to drive trust
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Focusing on authentic storytelling + real clinical backing
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Launching with micro-influencer UGC to support product reviews
“Amazon is still powerful. But you have to treat it like a channel — not the business.”
— Marta Delgado, VP of Growth at a top 10 supplement startup
Final Thoughts
The supplement industry is on fire — but Amazon isn’t the easy gold mine it once was.
Hot brands are facing real growing pains, from ad wars and fake reviews to supply chain drama and algorithm chaos. And yet, the smart ones are evolving, diversifying, and building real communities beyond the Buy Now button.
Success in 2025 means owning your story, protecting your product, and thinking beyond the marketplace.