the Joshua Schall Audio Experience

iHerb is the "Quiet Giant" of Dietary Supplements Ecommerce | Global Sales Playbook


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Can you name the health and wellness retailer that generates between four to five times more revenue selling categorical products online than the combined efforts of GNC and The Vitamin Shoppe? And here’s a hint for you…it’s not Amazon! Since the bulk of my audience is located within the United States, I’m going to assume that iHerb probably wasn’t the first health and wellness online retailer that popped into your head. So, despite its massive multibillion-dollar success…iHerb isn’t widely known in the U.S. market, mostly because the vast majority of its commercial activity happens internationally. But before blooming into a global powerhouse, iHerb began almost three decades ago as a Yahoo store selling St. John's Wort supplements online. And after the founder forgot to disable the international orders feature when the website launched, iHerb started getting orders from countries like South Korea. But rather than turning off the feature, iHerb decided to start fulfilling them. As sales started to grow, iHerb opened its first fulfillment center in 2002…marking the beginning of a strategic expansion that will soon include nine state-of-the-art logistics operations across the United States, Asia, and the Middle East. And because of its relentless focus on revolutionizing logistics solutions, iHerb can serve the health and wellness needs of customers located in 180 countries…maintaining an average global shipping time of less than five days and offering free shipping in 80 countries. Moreover, iHerb strives to create a localized shopping experience by translating its shopping platform into 22 languages and accepting more than 80 different currencies. Furthermore, iHerb has expanded its online marketplaces presence…reaching more consumers worldwide through 25 digital stores on platforms like Amazon, Tmall, Rakuten, and Coupang. But after a 22-year long journey, from selling a single supplement product to becoming a global leader in the health and wellness industry…iHerb surpassed $1 billion in annual sales. And while that was an enormous accomplishment, it only took iHerb six more years to reach $2 billion in annual sales. In fact, iHerb exceeded $2.4 billion in net sales last year…reflecting a YoY growth of 14.5%. And then for the final portion of my latest first principles thinking content, I'll briefly share my professional experience with iHerb, but more importantly provide a helpful geographical expansion strategic framework (that includes how to best leverage iHerb) for all my brand operators within the intersecting CPG categories of functional foods, functional beverages, and nutritional supplements.

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the Joshua Schall Audio ExperienceBy Joshua Schall

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