Gym Supplement Dropshipping

Alex created a supplement distribution business that leveraged his existing gym client network, using a drop-shipping model with innovative display and ordering systems.

Core Business Model

• Created drop-shipping supplement model for gym owners
• Targeted cash flow concerns of small business owners
• Provided gyms with two revenue streams:
  • Service recurring revenue (gym memberships)
  • Product recurring revenue (supplements)

Implementation

• Retail Display Kit:
  • 130 empty supplement bottles for wall display ($100 kit cost)
  • One sampler of each product
  • Research showed fuller walls increased purchase likelihood

Digital Ordering System

• Provided kiosks with Amazon Fire tablets
• Pre-loaded with gym's affiliate link
• Customers ordered directly for home delivery
• Set up automatic recurring shipments

Revenue Structure

• Paid 40% commission to gym owners
  • Gyms handled customer acquisition and sales
  • High margins for gym owners
  • Pure profit with no operational costs
• First month revenue: $1.7M
• Yearly revenue: $17M

Key Innovation

• Zero inventory risk for gym owners
• Created passive income stream for gyms
• Direct-to-consumer shipping
• Automatic reordering system