We are SIRKA – a full-cycle DTC agency
How Much Does It Cost to Launch a Supplement Brand in the US?
1
I want to launch a supplement brand in the US. How much money do I really need?
The internet is full of promises to launch a brand “for a few thousand dollars.” At SIRKA we take a more practical view: for 5 years we've been launching brands ourselves, both for clients and our own, in different niches, for different audiences and with different budgets.
Below we break down two scenarios: dropshipping as a way to test a hypothesis, and a full DTC brand. And we show where the money actually goes.
2
In short: how much does it cost?
You can start with any amount. But launching a store technically, testing demand and building a sustainable business are three different budgets.
- Dropshipping brand: at least $10k to test demand, $30–50k for a potentially successful business, about $100k with room for mistakes and several iterations. The launch takes 2–4 months.
- Full DTC brand: from $200–300k. The launch takes six months to a year.
- DTC brand with big ambitions: to reach about $1M in monthly revenue in year two, plan on about $2.5M to start. Even with a $500k monthly target, the budget goes past $1M.
3
The internet promises a brand for $1,000. Is that realistic?
Technically, yes. With dropshipping through a Chinese supplier or a US on-demand fulfillment service, you don't need to buy a first batch, rent a warehouse or invest in production. A ready-made product connects to Shopify and sells under your brand.
Design has also become cheaper: for roughly $200 a month, AI tools will help you create a logo, a label, visuals and even a site mockup. A Shopify site can be built without a developer, and at the start you can take on the roles of product manager, marketer and media buyer yourself.
The site works, the product is on display, and the Buy button can be clicked. But that only means the store is live: a launch like this doesn't guarantee steady sales or volume. A working site and a working business are not the same thing.
4
I'll start with dropshipping and do everything myself. Do I still need a team?
You can do everything yourself if you understand marketing, advertising and product, and you're ready to spend several months living only this project. In practice, we would budget for at least these roles:
- Packaging designer — the label and a basic visual style. About $300–350 outsourced. AI helps, but it doesn't replace a good designer yet.
- UI/UX designer — a well-thought-out site design, from $1,000 one-time for a simple design. You can build a Shopify site without a developer if you're confident with the platform and can edit the layout with AI.
- Product or e-com manager — from $5–6k for the whole launch period. Keeps suppliers, orders, failed deliveries and returns under control: you can't just connect a supplier and forget about it.
- Media buyer — understands marketing and the audience, briefs creatives (and ideally makes them), launches and manages campaigns.
- Creative team — at least one person each for static and video, usually outsourced.
The launch takes 2–4 months, so the team isn't a one-time expense but several months of salaries. And these are minimum figures: experienced specialists are hard to find at these rates.
5
How much should I budget for ads?
This is usually the biggest expense and the most underestimated one.
There's a popular piece of advice: three CPAs are enough to test a product. With a target CPA of $60, that's $180 per product, about $1,000 for five products, and you can draw conclusions. In practice, this math doesn't work: the first sales can look promising, but as you scale, acquisition costs rise and creatives that worked at first lose their effectiveness.
So we budget:
- $3–5k per product — the minimum to test demand;
- $10–30k per product — what we usually spend on a test to get conclusions you can build on.
The product itself may cost a few dollars. Finding out whether you can steadily acquire customers at an acceptable price costs much more. Unit economics shows what acquisition cost your brand can sustain: we covered how to calculate it in our article on how to build an offer for a supplement brand.
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Demand is confirmed. Why not keep growing on dropshipping?
The model saves money at the start but begins to take it back as you grow.
Margin. At popular US on-demand suppliers, a jar costs about $12; at the manufacturers we work with, $4–6. During a test the difference isn't critical, but at volume it eats your profit.
Returns. Goods from China take 10–23 days to reach the US, while Americans are used to getting orders in 1–2 days. That means more returns and support requests. Jars often have to be shipped back to China, so every return is a pure loss. On top of that, shipping can cost several times more than the product itself.
7
What if I want to stand out with my own product?
That's hard with dropshipping. Fulfillment formulas are standard, the product line is limited to the catalog, and the packaging is a generic white, black or clear jar. As a result, your product differs from dozens of competitors only by its label, and that's not enough for strong sales.
As soon as you need your own formula, format or packaging, MOQ comes in: you have to buy a batch in advance and pay for production and logistics. At this stage, the model stops being convenient and cheap.
That's why dropshipping is good for testing demand. Building a large brand on it is expensive and inefficient.
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How much does a full DTC brand cost, and where does the money go?
If dropshipping is tens of thousands of dollars, a full DTC brand is hundreds of thousands and more. The minimum for a proper launch is $200–300k, and there's no upper limit. The launch itself takes six months to a year, and the brand reaches large scale gradually.
What the total is made of:
- Product — your own formula and form factor, often with customized shape, flavor and color; test samples, the first batch, packaging.
- Branding and website.
- Amazon. For the US market, we recommend launching on Shopify and Amazon in parallel, which means separate inventory and an ad budget inside Amazon.
- Team — salaries for 6–12 months of work.
- Marketing — with a large buffer, because the brand runs at a loss in the first months.
The audience also has a big impact on the budget. A product for younger buyers usually has a lower order value and takes longer to pay back. A product for a 45+ audience has a higher order value but sells through more complex and expensive funnels.
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Who should I hire for a DTC brand team?
In dropshipping, a founder and a couple of contractors can cover a lot. In a DTC brand, this setup stops working. The minimum team:
- Supply chain manager — formula, production, packaging, deliveries. An experienced specialist who has worked with supplements, the US and China is hard to find and doesn't come cheap: from $3–4k a month.
- E-commerce manager with US e-com experience — the site, email flows, creative strategy and traffic buying: $2.5–3k a month.
- Media buyer — a good specialist's salary starts at $2.5k a month.
- Creative team — ongoing production of video and static ads.
- Designers — branding, packaging, website.
- Amazon manager — a separate channel with its own rules: figuring it out yourself is slow, hard and inefficient.
- Customer support — as orders grow, so do questions and returns; from $1,000 a month.
The team grows with the business: up to $10M in annual revenue, 6–10 people are enough; at $25M you need 25–30.
Building this team is a task of its own: specialists with US e-com experience are rare, and a bad hire costs months of work. SIRKA helps brands with this too: we search for, vet and hire marketers, media buyers and e-com managers for our clients' teams. We described how this works in our article DTC Recruiting to Go.
10
Maybe I should save on design and put everything into ads?
At the start, it's easy to treat branding as optional decoration: product first, then ads, and visuals only if there's money left. But in the US, DTC brands compete not only on product but also on packaging and visual presentation. On Amazon, on Instagram and at retailers, you sit next to brands with a well-designed visual system, and one neat jar with a label may not be enough.
Good design is a relatively small investment at the start that lowers acquisition costs and raises LTV for the whole life of the brand. The same goes for the product itself. Capsules that are too large, a bad flavor, a powder that leaves sediment: little things like these stop people from buying again, and no ad budget can make up for it.
So before choosing a flavor and format, read reviews of competitors' products on Amazon: customers will tell you themselves what annoys them. We showed how to quickly analyze such reviews in our article on competitor review analysis.
11
The brand has launched. Why do I still need money?
Because the launch is only the beginning of the spending. In the first months, the brand is looking for a working combination of product, creatives and ads: money goes into marketing right away but comes back only a few months later.
At the same time, you need to prepare the next batch of goods: production and shipping take 2–4 months, and you can't wait until the warehouse is empty. At large scale, the numbers quickly get serious. For example, if a brand reaches $200k in monthly revenue by month six, by month eight the next purchase order may be $700–800k to cover another 4–5 months of sales through Shopify and Amazon.
It's a paradox: the faster a brand grows, the more money it needs. You're financing current marketing, future inventory and growth all at once, long before revenue turns into free cash.
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Where do brands most often lose money at the start?
Most of the money lost goes not to ads or the team, but to a few typical mistakes.
- Buying inventory before testing demand. Brands regularly come to us with 20,000 units in a warehouse that took almost the whole budget. Demand can be tested before buying: run ads for a product that doesn't exist yet and see how it sells.
- Betting on a single product. If it misses, the whole budget burns. It's better to split the test budget across several SKUs.
- Fighting category leaders in the ad auction. Big brands have multimillion-dollar budgets and thousands of creatives a month, and trying to take a place next to them often ends in burning large sums. At the start, look at growing competitors, not at those already at the top.
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So how much should I budget in the end?
Dropshipping is a way to test demand for $10–100k in 2–4 months, but it's not a foundation for a big brand. A full DTC brand starts at $200–300k and takes six months to a year to launch, plus money for growth after the start. The main expenses in both cases are ads and the team, and the main losses come from inventory bought before demand was tested.
If you want to calculate a launch budget for your product, get in touch.
















