NutraCast: The Rise of iHerb: From start-up to global e-commerce giant

18-Oct-2024 - Last updated on 18-Oct-2024 at 14:40 GMT

In the 1990s, iHerb entered the market as a small California start-up selling St. John's Wort online but quickly saw global demand, receiving orders from five different countries on its first day alone.

This ‘aha’ moment led iHerb to focus on building a robust logistics operation to fulfill orders worldwide, providing customers with a seamless local experience despite their location. The company just recently celebrated its 28th birthday, evolving into a thriving $2 billion global e-commerce retailer.

iHerb revolutionized its logistics solutions to propel its rapid international expansion, which includes offering translated websites, customer reviews and unique payment methods like Konbini (which allows customers in Japan to pay for online purchases at convenience stores with cash). The company has also adapted to shifting consumer trends, such as launching a mobile shopping app in 2019 and TikTok Shop earlier this year.

Neil Folgate, senior VP of marketing at iHerb, said that the company has seen great success in scaling its TikTok Shop presence this year, highlighting the platform's potential for businesses to reach and convert a new generation of consumers. Despite this success, he added that TikTok presents its own set of unique challenges, such as random videos going viral, leading to sudden surges in demand.

“This is often the most maddening thing—you can never predict where or what it’s going to be," he said. "And you can't even artificially create it, right? I mean, every company would love to sort of create their own virality and demand around their own products, but it doesn't work that way."

"An example is liquid chlorophyll a year or two ago, and we sold out immediately within days. I think everyone sold out, and actually that created shortages probably in the U.S. and worldwide, just from what started with just a piece of content on TikTok.”

iHerb celebrated its recent anniversary with its biggest, month-long September sales event. Folgate said iHerb enjoyed its most successful month ever, with over-the-top advertising such as a spot on NASDAQ's digital billboard in Times Square as well as more traditional advertising in the form of mailers and flyers.

To hear more on iHerb’s evolution and where you can find them next, listen to the NutraCast.

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