How to Start Ayurvedic Products Wholesale and Distribution Business?

. 8 min read
How to Start Ayurvedic Products Wholesale and Distribution Business?

Ayurvedic wholesale and distribution business is quickly becoming very profitable. More and more newcomers are trying to learn how to sell ayurvedic products and set up an ayurvedic wholesale and distribution business.

If you want to sell ayurvedic products online, this blog will explain how you can get started. Before getting into an ayurvedic wholesale and distribution business, one must fulfil some basic requirements. A few of the things that one will require is a warehouse where ayurvedic medicines and supplements can be stored; helpers will be required along with delivery boys; partnering with a reliable logistics company is essential. Read this blog to find out everything that one needs to keep in mind before starting an ayurvedic wholesale business.

How to set up an ayurvedic wholesale and distribution business?

  • The first thing that needs to be done is searching for a shop at a prime location. You can rent the space or own it. If you are only thinking about distribution wholesale, you don't need to worry about selecting a prime location; however, if you want to be in retail, finding a good site is necessary.
  • Shop registration will also be required. Ensure you follow the local authority norms.
  • GST registration number will be required.
  • If needed, take an FSSAI registration or license.
  • Distributorship of the ayurvedic company will be required.
  • Start purchasing ayurvedic products from a reliable source.
  • Think of a good name for your ayurvedic wholesale business.
  • Knowing your target audience is crucial; however, before you start marketing the best-selling ayurvedic products of your ayurvedic shop, it is better to think of practical ways that will let you serve your potential customers.
  • After you figure out the value that your ayurvedic products will offer, and you know your target audience, now it is time to work on a robust website, which will become the face of your company. A company website is mandatory because it will let you have an online presence. While working on the website, try to incorporate all the marketing strategies on your company's website to start ranking.
  • If you are thinking of setting up a clinic along with the ayurvedic wholesale and distribution business, get NABH accreditation to run your ayurvedic clinic; if not, skip this step.
  • Ayurvedic medicine is no longer just antique medicine now. It has become a popular science. To protect rights of distribution of any ayurvedic medicines that you have manufactured in-house, it is better to get a patent; however, getting a patent for ayurvedic medicines is not easy.
  • After taking care of all the steps, you can now start distributing products.
licences folder focused in the stack of folders

License requirement

To start an ayurvedic wholesale and distribution business, you might require a wholesale license. This license is issued to a person or an agency that is into the wholesale business of ayurvedic products and medicines.

Documents required

Certain documents will be required to become a wholesaler of ayurvedic medicines and products.

  • The first requirement is MOA, which is a Memorandum of Association. Along with this, the AOA of the company will also be required. AOA stands for Article of Association.
  • The second requirement is an address proof of your business. If you are taking the space on rent, you need to provide a rent agreement.
  • Thirdly, you need to have photo ID proof for being the company's partner/director/proprietor.
  • Agreement of MPD 2021 affidavit will be required.
  • Qualification proof.
  • Registration of Delhi AYUSH Council.

GST requirement

An ayurvedic wholesale and distribution business should apply for GST, Goods, and Service Tax Number. If your business turnover is more than 20 lakhs, GST will be compulsory; nevertheless, applying for GST makes sense because you can take tax rebates on the goods you receive from a company or manufacturer.

Ways to take distributorship of an ayurvedic company

  • The first thing to do will be to take GSTIN, the Goods and Service Tax Identification Number.
  • The next thing to do is make a list of different ayurvedic companies you wish to take the distributorship. You may also look for various companies online.
  • Start contacting these ayurvedic companies for distribution ships. The best way to contact a company would be to get in touch with the sales team and tell them that you want to be the distributor for their ayurvedic products.
  • If the company agrees, the company will provide you with a distribution form. Fill it up and make an agreement.
  • After completing all the formalities, you can now send purchase orders and begin your ayurvedic wholesale and distribution business.
different ayurvedic herbs placed on table

The steps mentioned above have to be followed to become an ayurvedic wholesale and distribution company. Once you become one, you can purchase different ayurvedic medicines, products, and supplements at wholesale prices and start selling them to pharmacies, chemists, retailers, and ayurvedic practitioners.

We hope now you have the answer for how to sell ayurvedic medicines online and become an ayurvedic wholesale and distributor. Remember that license may or may not be required. However, applying for GST makes sense. You should also work on a solid website so that your prospective clients find you reliable to start buying ayurvedic items from you.

Also Read:

1) How to Start a Vegetable Business?
2) How to Start an eCommerce Organic Food Store?
3) How to Start an Interior Design Business from Home?
4) Ayurvedic Products Manufacturers in India

5) Best Ayurvedic Brands in India
6) OkCredit: All you need to know about OkCredit & how it works.

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Q. Is a drug license required to open an ayurvedic wholesale and distribution company?

Ans. To start selling ayurvedic medicines, no one needs a drug license. However, since you will be a wholesaler, you might have to look for something called a wholesale license. In most of the states in India, wholesalers are required to get this license. Contact your local authority to know more about it. A wholesale license is also known as wholesale distribution authorisation or wholesale dealer license.

Q. Is there any minimum requirement to start an ayurvedic wholesale and distribution company?

Ans. No, there is no minimum requirement to start an ayurvedic wholesale and distribution company. Few of the documents will be required, such as MOA and AOA, address proof, photo ID proof, rent agreement, etc. Please see our documents required section to find the answer.

Q. Will I need a manufacturing license if I start an ayurvedic wholesale and distribution company?

Ans. A manufacturing license is required by companies who are into the ayurvedic manufacturing process. The AYUSH department of the government of India will provide the license. If your ayurvedic wholesale and distribution company is into manufacturing ayurvedic medicines as well, then yes, you will need a manufacturing license. To apply for the manufacture license for ayurvedic medicines, there are some mandatory requirements.

  • You will need to have a degree in Ayurvedic Pharmacy or Ayurveda/a diploma in Ayurveda/ a graduate in Pharmaceutical Chemistry/ Botany/ Chemistry or Pharmacy from an authorised and government recognised college or institution.
  • The next mandatory requirement is Hakim or Vaid registration.

After completing the requirements, you may apply for a manufacturing license. Please note that you don't need to apply for a manufacturing license if you are only selling ayurvedic products.

Q. How can I promote my ayurvedic wholesale and distribution business?

Ans. Even to be able to sell ayurvedic products to resellers such as pharmacies, clinics, chemists, retailers, and ayurvedic practitioners, you will need to have a robust marketing strategy. Since there will be many wholesalers and distributors, you need to stand out from the competition to generate more revenue.

  • The first thing that you will have to do is create a website. Make your presence known to everyone, and there is no better way to do that than by creating a website. Your website will become the face of the company. Start promoting your website and establish a brand name.
  • Work on SEO so that your company can rank better on Google and other search engines when someone looks for an ayurvedic wholesale and distribution company. If you don't know about SEO, get in touch with an experienced SEO agency who will do the work for you.
  • You will also have to create interest among buyers through online advertisements. Be active on social media because today, everyone uses social media. Encourage others to buy from you. Don't shy away from promoting the ayurvedic products that you want to sell.
  • Finally, provide exceptional customer service. The customer service that you will provide will become the backbone of your company. Make sure your customer service executives are always ready with answers.