From movies to real life, spotting a rush at the nearby coffee shop throughout the day has now become a norm. And we are sure that some of us, too, are coffee-obsessed. But selling coffee only through cafes and restaurants is an old story because eCommerce entrepreneurs and coffee-selling enthusiasts have taken this one step ahead – to sell coffee online, tapping into a bigger market.
Coffee is one of the most widely consumed beverages across the globe. There are already amazing coffee businesses online selling a wide range of coffee beans, artisanal coffee powders, and related tools. And if you want to start a similar business and sell coffee online, this article will help you do just that. Let’s begin!
Is Selling Coffee Online a Profitable Business?
Although we covered the base on how promising it is to sell coffee online, we thought it would be good to analyze the previous years’ statistics to understand how promising this avenue could be for budding business aspirants like you.
The rising trends of out-of-home coffee consumption, urbanization, e-commerce retail sales, and increased Gen Z income are set to drive market growth in the coming years.
In fact, by 2027, the global coffee market is anticipated to reach volumes of 203.88 million and 194.99 million 60 kg bags in production and consumption, respectively. This positive inclination is a great sign for entrepreneurs like you who wish to start a coffee business.
So, how much can you make selling coffee online?
According to Statista’s forecast, the coffee market is expected to grow further by 4.61% between 2023 and 2028, and the revenue of this market is already full-blown, standing at $88.3 billion this year, with the biggest consumer as America.
This, coupled with the reduced overhead costs of running a business online, along with the expansive market reach of the internet (you get to attract and sell globally), clearly outlines the fact that selling coffee online could be an exciting new business opportunity.
Benefits of Starting an Online Coffee Store
Let’s zoom into the business of selling coffee online and understand its possible benefits closely:
1. Wide Market Reach
Like we discussed above, entering the eCommerce coffee business world grants you access to a global audience. The number of digital buyers is exponentially increasing, and in 2021, it has already crossed 2.14 billion users. Unlike physical coffee stores, where your sales are limited geographically, opening an online store to sell coffee online enables you to take your coffee brand up to a global market.
2. Lower Overhead Costs
Starting a brick-and-mortar store means rent, inventory, electricity, interior costs, and many more. When you move your business online, you don’t have to pay for any physical space, such as rent and other utilities. All you have to pay is for your online eCommerce platform, which, if you are choosing a platform like Shopify, will come as low as $29 a month. And if you are adopting a dropshipping model for your online coffee store, then you will have reduced inventory costs as well.
3. Reduced Inventory Risk
You probably would have faced this as a customer. You go to a store, looking for your favorite brand of sauce, and realize they are all out of stock! The staff checks up their storage to see if they have more, but that also comes out as a fail. This can be a frustrating experience for a customer.
When you move online, this is an uncommon happening. Starting an online coffee brand would also mean real-time inventory tracking, letting you manage your stock levels based on your orders and reducing the risk of overproducing or stockouts. Customers can also get the product they want without much frustration. And even if your products go out of stock, you can always notify them when the new set arrives via email, creating a quality brand image.
4. Personalization for Customers
ECommerce platforms win over physical stores on many matters, and one of them is the personalized experience they offer. In fact, a study showed that there could be a 20% increase in sales when you provide a personalized experience to your customers. With the help of data analytics and insights your eCommerce platform provides, you can provide your customers with an interactive and personal experience through special discounts or coupon code recommendations tailored to their buying history, preferences, and needs.
5. Convenience for Customers
The ability to shop at the click of a button, with numerous payment options and home delivery, enhances the convenience for customers. his level of convenience is preferable to a modern consumer’s lifestyle, where time efficiency is highly valued, making online shopping a preferred choice for many. Plus, eCommerce shopping provides them with a user-friendly shopping experience, encouraging customers to make frequent purchases. And it is also easier than ever with online shopping to inform them of new stock updates and product launches.
6 Steps to Starting a Business to Sell Coffee Online
Wondering how to sell coffee online? Here are 6 must-follow steps you can take inspiration from before starting a business to sell coffee online.
-
Identify Your Niche
You want to sell coffee. But before jumping in, you need to look for your target audience. Amongst coffee lovers, you will find some who are inclined towards a specific type of coffee or variety. You need to figure out the niche you are entering. Do you want to sell artisanal or specialty coffee made with organic varieties? Are you thinking of single-origin beans?
Once you have figured out the exact market you are entering to sell coffee online, then the rest can follow. Also, once you have decided on the niche, it is a perfect opportunity for you to brainstorm shop name ideas that capture the essence of your niche and connect with your intended audience.
-
Product Selection
You have chosen your nice, and next in line is the product. You can choose from aromatic coffee beans, finely ground coffee, convenient coffee pods, or a myriad of coffee-related accessories or a combination of all these for your online store. Remember to keep in mind the expectations of your target audience when you do this. And don’t shy away from taking a sneak peek at some of your possible competitors and see how well they are doing in terms of this.
If you are looking to offer more than just coffee powders, you can indeed deliver a unique experience for your customers, where they can find any coffee-related product and information from your store. If you are still confused as to where to start, you can use a business ideas generator, too.
-
Decide on Your Business Model
This one is an important one. Are you leaning towards dropshipping coffee products directly from suppliers, or is roasting your own coffee beans more aligned with your vision? This choice will shape your operational framework and influence how you sell coffee online, impacting everything from supply chain logistics to pricing strategies.
-
Find Your Supplier
The next one is the relationship with the suppliers. If dropshipping is your chosen route, conducting thorough research to identify reliable coffee bean suppliers or wholesalers is imperative. Alternatively, if you opt for roasting your beans, then you would need a consistent supply of green coffee beans from quality sources. This will ensure you keep your product quality and customer satisfaction top-notch. Coffee brands like Rumble Coffee Roasters and Temecula Coffee Roasters are also coffee dropship suppliers you can check out.
-
Develop Your Brand
The online coffee marketplace is competitive. So, you need to establish a strong and memorable brand, and this is non-negotiable. Explore other business ideas related to coffee that your competitors haven’t done, create a visually appealing logo, and craft a distinctive brand voice that sets you apart from the competition.
-
Set Up Your Online Store
Finally, with the foundation laid and your brand taking shape, the next critical step is to launch your online store. You need to create a user-friendly, secure, and search-engine-optimized website. For this, you need to choose a good platform that enables you to showcase your products effectively, manage inventory, handle transactions securely, and integrate seamlessly with marketing tools. We’ll discuss more on this in the later sections.
8 Strategies to Follow While Selling Coffee Online
Starting an online coffee business can be an exciting venture, and by following these 8 strategies, you can set yourself up for success.
1. Source Quality Coffee Beans
If you like coffee, you would also probably know that all coffee is not good coffee. And the secret ingredient to making that perfect cup of coffee is good quality beans. Sourcing quality beans for your online coffee store is extremely vital.
High-quality beans translate to superior flavor and customer satisfaction, building your reputation. So, research and establish relationships with the best possible suppliers who align with your quality standards and values.
2. Prioritize Your Branding Efforts
Your brand drives your business. It is essentially the experience and the unique touch in every product you sell. It’s the personality and vibe of your online store, and it should be expressed through your website’s look and even your packaging. It tells your customers what you care about. Your branding and your values should go hand in hand. If you are a promoter of organic or eco-friendly practices, then convey them through your packaging as well.
3. Offer a Diverse Product Range
Just as a café offers different blends and treats, diversify your online offerings. Alongside coffee, consider selling accessories or complementary goods. This approach caters to a broader audience, encourages larger transactions, and enhances the overall shopping experience.
Stumptown Coffee is a great example of this one! They not only offer coffee beans and powders but also essential coffee gear, which includes filters, french press, t-shirts, etc. Plus, they make organic coffee, too, and since it is mentioned on the package, it is easier for the visitor to choose the right one and add it to their cart.
4. Focus on Customer Experience
Exceptional customer service is as important online as it is in a physical store. Have a dedicated customer support section. And it is absolutely alright if you are running this small-time and cannot afford to have 24/7 customer support. Provide your contact details clearly on your website and social media channels so customers can reach out to you at any point for any queries. You also need to provide prompt responses to these queries.
Customer experience also means the overall user-friendliness of your website, which we already talked about. At the same time, providing an ample number of payment options and maybe even an express checkout option could attract more customers.
5. Leverage Content Marketing
Content marketing is like hosting coffee workshops in your shop. Create engaging, informative content as guides or blogs to educate your audience about coffee varieties, brewing methods, and more. This strategy is great for first-time coffee buyers and also builds your brand authority.
6. Don’t Ditch Social Media
Social media is the bustling square where people discuss their favorite coffee spots. Utilize platforms like Instagram, Facebook, and Twitter to connect with your audience, showcase your products, and share behind-the-scenes glimpses. Regular engagement on social media can boost your online presence and direct traffic to your website.
7. Implement Email Marketing
Want to sell coffee online? Then, email marketing is your bulletin board. Use it to inform your customers about the latest offerings, deals, and updates. Personalized emails can also help you create a direct connection with your audience, encouraging repeat purchases and keeping your brand top of mind. It is also a cost-effective way to nurture relationships and drive sales.
8. Analyze Results and Iterate
Running a business online requires adaptation and refinement, especially if this is your very first rodeo. So, regularly analyze your sales data, website traffic, and customer feedback. Utilize these insights to refine your strategies, optimize product offerings, and enhance customer experience. This way, you can expect continuous growth and success for your business in the online coffee marketplace.
4 Platforms to Sell Coffee Online Like a Pro in 2023
Here are 4 platforms you can consider to start and sell coffee online in 2023:
1. Shopify
Shopify is undoubtedly the top choice when it comes to opening a virtual store to sell coffee online in 2023. The reasons are many, including its user-friendly interface, 100+ attractive themes, and over 4000 Shopify apps that can support your changing business needs. Plus, building an online store with Shopify requires no coding skills, which means that even if you are a beginner, you can create your first store without any external support. Even if you want to create a highly customizable store with Shopify, you can always take up Shopify Experts.
If you also have an offline store and want to connect it with your online store, then the Shopify POS feature could be really beneficial to you.
2. WooCommerce
WooCommerce is an open-source eCommerce platform that is meant for merchants and developers who want to build a successful and long-term business. You can easily create a conversion-focused eCommerce coffee business with WooCommerce for free and choose a plan later based on your business’s growth.
With extensive customization options and a vast array of plugins, WooCommerce allows you to create a fantastic shopping experience for your coffee customers. Plus, you can sell coffee online across multiple platforms with their multi-channel feature.
3. Wix
Wix is another popular eCommerce platform that you can leverage to sell coffee online. It is perfect for small to medium-sized online stores. The platform is known for its drag-and-drop builder, which makes creating a stylish and functional online store simple, even for those without technical skills. It comes with 900+ free and customizable templates to choose from, along with numerous other apps and features.
4. BigCommerce
BigCommerce is another excellent platform to sell coffee online, offering a host of features designed to grow your business. It provides various built-in tools and customization options to create a unique and engaging storefront.
With its focus on scalability, BigCommerce is ideal for entrepreneurs who are looking to start large. The platform also offers seamless integrations with popular payment gateways and marketing tools, ensuring that your online coffee business has all the essentials for success.
As your business grows, you might find certain features of a platform more suitable than your current one. In that case, if you are looking to migrate your online coffee shop from one eCommerce platform to another, let LitExtension – #1 Shopping Cart Migration Expert handle the task. With over 10 years of experience working in the field, we guarantee to transfer all your data quickly, securely, and with utmost security.
Frequently Asked Questions (FAQs)
[sp_easyaccordion id=”65292″]
Wrapping Up
Wrapping it up, if you are planning to sell coffee online, then remember that it is not just about transactions; it’s about creating a memorable experience around a cup of joy for your customers. Taking a storytelling approach for your brand can make your online coffee shop a go-to destination for coffee lovers. Additionally, using platforms like Shopify or WooCommerce, engaging your audience through stories, and delivering quality are your stepping stones.
Don’t forget to adapt, learn from every feedback, and keep the coffee lover at the center of your decisions. So, are you ready to share your love for coffee with the world? Here’s to brewing success in the digital world as you sell coffee online!