Learn How to Start an Online Coffee Business
Table of Contents:
Start Selling Coffee Online in 10 Steps
7 Tips to Help New Coffee Brands Succeed
10 Products Coffee Brands Should Consider Selling
How to Start Selling Coffee Online in 10 Steps
Selling coffee from your home can be fun and challenging, whether it is your career, pastime or supplementary income. If you want to get started selling coffee from home, but do not know where to start, follow these instructions for starting a coffee business online.
1. Determine Whom You Are Going to Sell To
As an online coffee brand, you will have two main types of customers: individual buyers and local coffee shops or other businesses. Each group has very different needs in a coffee provider, so it is essential to know your target audience before determining what type of coffee your brand will sell. While cafes may prefer to buy larger bags of whole beans so they can grind them fresh daily, a busy restaurant may prefer pre-portioned ground coffee for quick and consistent brewing. Individual buyers will likely shop for single-serve capsules or bags of whole or ground coffee beans they can use at home.
Different customers will also have different concerns when it comes to the flavor and quality of their coffee. Some people prefer rich, dark roasts, while others enjoy caffeinated light roasts. Some coffee lovers prioritize specialty or “third-wave” coffee and want to know the origin and source of their coffee beans. Other customers may seek organic or fair-trade coffee.
Choosing a niche market for your coffee brand is often the best method for narrowing your customer base. Rather than trying to create coffee that appeals to everyone, you can focus your efforts on one group of coffee drinkers. This strategy will allow you to specialize your coffee flavor profiles, marketing efforts and company branding to your customer base.
2. Decide What Coffee Products You Want to Sell
After you know your target audience, you can determine what type of coffee to sell that will best suit their needs. Determine if you want to offer private label k cups, pods for Nespresso, coffee beans, or a combination. According to the NCA, 41% of coffee drinkers own a single-cup machine, while 63% of home coffee drinkers use a drip-brew machine.
When deciding what products you want to sell, be sure to look at what your competitors have on their shelves and online. You will want to offer products that set your business apart, while keeping up with current coffee trends.
3. Develop Your Brand Image
No matter how delicious your coffee may taste, a poor or underdeveloped brand image can have a negative impact on your sales. A strong brand image is especially important when selling coffee online, as customers will not have a chance to taste your product before they make a purchase.
Your brand image should embody what your coffee is all about and what your company stands for. Perhaps your coffee is intensely strong, sustainably and transparently sourced, or available in unique flavors. Many coffee companies have earned success by articulating specific values through their name, logo, website content, and even their packaging. When you find that special something that distinguishes your coffee, use it to inspire your brand image.
The name and logo of your coffee business will make your customers remember — or forget — your company. Choose a name that is creative and memorable, as well as a unique logo that embodies what your company is all about. How you package your coffee will also impact how your customers perceive your brand, whether you opt for a bold and bright coffee bag or a classic and timeless design.
4. Create a Website and Decide on an E-Commerce Platform
Your website will be your storefront, so you should design it with the same care and thought you would spend decorating a physical coffee shop. Create a website with an appealing and easy-to-use interface so customers enjoy their experience on your website, as well as getting a feel for your company’s values. Make sure your website is clean and professional, so customers will be confident in placing an online order. Having a professional and streamlined website will also encourage purchases if users can easily find and buy the products they are looking for. Aim to create a website that loads quickly and looks great on both computers and mobile devices.
Choosing an e-commerce platform is the most important part of having a successful online coffee business. Your site must have a shopping cart feature and allow customers to complete their payment easily online. Popular e-commerce platforms like Shopify, BigCommerce, and SquareSpace make designing an e-commerce site simple, as they provide customizable website designs and an easy-to-use checkout function.
5. Write a Business Plan
While it may not be the most exciting part of starting a coffee business, creating a written business plan is essential to the success of your company. If you want to turn a good profit, establish a business plan that includes all your initial costs, ongoing expenses, and projected sales. Determine how much you will charge for your coffee and set a sales goal. Always be prepared to adjust your business plan as your coffee business grows and changes.
Be sure to keep track of your inventory, so you know which products are the most popular and which are not selling as well. This attention to detail will enable you to be efficient with your ordering and reduce product waste. Staying organized will help your coffee business thrive and grow.
6. Determine Who to Choose as Your Coffee Supplier
Choosing the right coffee supplier is essential to the success of your online coffee business. Your supplier determines how your coffee tastes and impacts the quality of service you can provide your customers. Here are a few things to look for in your coffee supplier.
- Quality coffee. If you want your coffee to sell, it has to taste good. A great supplier will provide high-quality coffee that fits your roasting and flavor specifications.
- Quick turns. Delivering products quickly will keep your customers happy, but to do so, you must have a supplier with fast turnaround times. Your supplier should fill your orders quickly, so you never keep your customers waiting for their favorite roast.
- Low minimums. When you are just getting started in the coffee business, you need a supplier with low minimums so you can afford to get your business up and running without breaking the bank.
- Outstanding service. If your coffee supplier cares about your success, they will give you high-quality customer service. Look for a supplier that is willing to adjust to your company’s needs and provide coffee you are proud to sell.
Joe’s Garage Coffee is a leading private-label coffee supplier that can help you start selling coffee from home. Our low minimums make it easy to hop into the industry, while our fast turns keep your customers satisfied. Our licensed Q-Grader can match any roast profile, and our team of private label experts will ensure your coffee beans are the highest quality.
Whether you are looking for coffee roasting or co-packaging services, Joe’s Garage Coffee can roast, grind, and package your coffee for a consistent and delicious brew every time. Our advanced inventory system allows us to manage large and small orders with the same level of care, and our flexible capacity means we can grow as your business grows. Backed by more than two decades of experience, Joe’s Garage Coffee is a supplier you can trust for your online coffee business.
7. Begin Creating Online Content
Creating outstanding content for your website is essential to selling your coffee. Here are a few types of content you will need to create for your online coffee business.
- High-quality photos. People want to see what they are buying before they make a purchase, so fill your site with high-quality photos of your coffee. Include multiple views of your coffee packaging and coffee beans, as well as photos of people brewing or enjoying your coffee. Choose images that engage the senses and are aesthetically appealing. When customers can visualize the product in action, they are more likely to make a purchase.
- Detailed product descriptions. Make sure to include detailed product descriptions that describe the flavor notes of each coffee product. Compelling copy will engage potential buyers, as well as helping them choose the right coffee for their tastes.
- Other written content. Use sales copy, blog posts, and other written content to develop your brand voice and share your company’s story. Compelling and interesting written content will help customers feel connected with you and your coffee brand, which will lead to more sales. People love to support brands they can trust and relate to, so fill your site with real and genuine content that your customers will enjoy.
Keep in mind search engine optimization (SEO) will make your website rank higher in search results, and thus help your brand get discovered. Make sure to employ SEO best practices to draw more website traffic, including creating fresh and relevant written content, building strong links, using relevant keywords, and including high-quality images. Using SEO services to maximize your site’s conversion rate can also be a great long-term investment to grow your online coffee business.
8. Build Your Brand Online and Offline
Building your brand’s social media presence is another excellent digital marketing strategy to drive traffic to your site and increase sales. Social media sites like Facebook and Instagram also allow you to connect with your customers and build a stronger network. Having a large social media following also benefits your brand by making it appear more reputable and trustworthy.
Facebook is a great way to reach a large audience, as it currently has 2.23 billion active monthly users worldwide, and in the U.S., 68% of adults use Facebook. By creating a Facebook page or group for your online coffee business, you can build deeper relationships with customers and have conversations with them directly in comments on your posts.
Because of its visual focus, Instagram is an excellent site for showcasing your products, as well as reaching a younger demographic. According to the Pew Research Center, 71% of people in the U.S. between the age of 18 and 24 are Instagram users. This demographic also loves coffee and has driven the growth in gourmet coffee consumption in recent years. Instagram allows your company to connect with people through branded and popular hashtags and is an excellent way to show the personality of your company.
In addition to connecting with customers online, be sure to take your networking to the streets. Talk to friends and neighbors about your coffee brand, as well as visiting local coffee shops that might be interested in serving your coffee. Word of mouth is a powerful marketing tool business owners often overlook, but it can be one of the best ways to build valuable connections.
9. Deliver Excellent Customer Service Every Time
Building a loyal customer base is essential to the success of your business, as repeat customers provide reliable revenue and can be your most powerful marketing tool. When your customers love your product, they will tell their friends and family about your brand or share your content online. Providing excellent customer service is a great way to build a loyal customer base and is the cherry on top of a quality product.
Make sure your company gains a reputation for excellent customer service by filling orders quickly, adjusting to customer needs, and responding to customer complaints with genuine care. If something goes wrong with an order, good customer service can fix the problem and prevent you from losing a customer.
10. Value Your Loyal Customers
Show your loyal customers you value their business by providing incentives that bring them back. Consider creating a loyalty program or producing a monthly newsletter that offers special deals and discounts to customers who subscribe. Use your knowledge of your customers to craft specials they are sure to love. Even a simple “thank you” will show your customers you are grateful for their purchase and support. Building a loyal customer base will allow your coffee business to continue to grow.
7 Tips to Help New Coffee Brands Succeed
The coffee industry is hotter than ever, and the number of daily coffee drinkers is continually on the rise. With about 64% of Americans enjoying a cup of joe every day, now is a perfect time to start your own coffee brand. Whether you are dreaming of creating an online coffee brand or expanding your retail business, building a successful coffee brand takes the right planning and know-how. That’s why we have created a list of seven tips and best practices for starting your own coffee brand and helping it thrive for years to come.
1. Provide Quality Products and Services
Plain and simple, the foundation of a successful coffee brand is a good cup of coffee – don’t let anyone tell you otherwise. Quality and consistency are essential for success in the coffee industry, so your business must deliver delicious and fresh coffee time after time. Too many business owners focus on low cost and wonder why their customers don’t come back for more. With thousands of coffee brands and blends on the market, your customers can easily turn to another coffee company if they are not satisfied with your products or services. According to current coffee trends, customers care more about the quality of their coffee more than ever before, with gourmet coffee making up 59% of coffee consumed daily. The number of daily coffee drinkers choosing specialty coffee has also seen the highest overall growth in the coffee industry over the last 18 years.
Providing quality coffee and coffee products begins with a high-quality coffee supplier. Many factors influence the quality of coffee from the sourcing of the beans to the roasting and grinding process. Seek a coffee supplier who can offer the best quality of green coffee beans and meet your roasting and flavor specifications. Your supplier should offer precise and even coffee bean grinding for a variety of coffee brewing techniques, including drip-brew, french press, espresso, and even single-serve capsules. When quality is the focus in each stage of the process, you can provide exceptional coffee products to suit your customers needs no matter their brewing preference.
2. Reward Your Loyal Customers
Once you have impressed your customers with high-quality coffee, you still need to earn their long-term loyalty and trust. Building a strong customer base is essential for the success of your new coffee brand because loyal customers will provide reliable revenue, spread the word about your brand, and offer valuable feedback to help your brand improve. A great way to keep your customers coming back for more is to reward them for choosing your coffee brand. Here are a few effective ways to thank your loyal customers and earn repeat business:
- Create a loyalty program: Although they have been around for decades, loyalty programs remain an effective way to attract repeat customers. Create a straightforward loyalty program that offers a free product or coupon with a certain number of purchases. Loyal customers will look forward to receiving a special gift or beverage and will be excited to purchase from you. Another bonus of a loyalty program is every time customers see your loyalty card in their wallet, they will remember your coffee brand.
- Give special offers and coupons: Pay attention to your customers’ preferences to reward them with special offers and coupons for new products they will love.
- Connect on social media: Customers who love your products will want to feel connected to your brand. When loyal customers reach out to you on social media, respond with friendliness and gratitude. Building relationships with your customers will grow your company’s impact and reach.
- Always say thank you: Never underestimate the power of a simple thank you to make your customers feel special and valued. Whether you send a thank you email or express your gratitude in person, your customers will be more likely to come back when they know their business is truly appreciated.
3. Create Multiple Streams of Revenue
Although coffee can have a great profit margin, companies that offer only coffee may not generate enough gross profit to succeed. A customer stopping in for a morning coffee or shopping online to buy more coffee beans will likely purchase just one product at a time. However, coffee shops and online coffee suppliers can create multiple streams of revenue by offering a few different products. When customers have more than one type of product to choose from, they are more likely to make a larger purchase with each transaction. In addition, if one product is not selling as well, your brand can make up for losses with the other products you offer. Here are a few ways to create multiple streams of revenue for your coffee brand:
- Food products: Cafes and restaurants can offer a tantalizing display of cookies and pastries so customers grabbing a quick coffee may be enticed to purchase a snack as well. Your coffee company can also sell chocolate-covered coffee beans or other sweet coffee-based treats using your private label roast.
- Other beverage options: While this may be hard to believe, not everyone loves coffee, but by offering other beverages like tea and lemonade, your brand can provide something for every customer. Offering beverages without caffeine can also appeal to younger and older customers.
- Various types of coffee products: If your coffee brand sells both ready-to-drink coffee and coffee beans, customers may grab a drink while shopping to restock their cabinets with coffee at home. In addition, customers grabbing a hot cup of joe may also want to purchase a cold bottled beverage to-go.
- Branded merchandise: Selling mugs, t-shirts or other branded products is another effective way to boost revenue. Customers who love your coffee will be excited to wear your logo and represent your brand, which will also boost your brand visibility.
4. Do a Few Things Really Well
At the same time, you don’t want to branch out too much. New and growing brands often make the mistake of trying to do everything and please everyone at once. Brands that offer a wide variety of products must invest more time and money to develop these products and manage their diverse inventory. When a brand is spread too thin, the overall quality of their products may decline. If you want to be known for your great coffee, focus on creating great coffee. Offer related products without straying too far from your core focus.
Instead of aiming too broadly, smart coffee brands limit their assortment of coffee products so they can offer a few things that are exceptionally high quality. Narrowing the target audience of your brand allows you to truly satisfy your customers. This is especially true in the coffee industry where flavor preferences and tastes vary widely between demographics, regions and individual customers. By tailoring your products to a niche group of coffee drinkers, you can create products they will love and narrow your marketing efforts for a better return on your investment.
When first starting your coffee brand, begin with a small target audience and develop unique products that satisfy that market. Once you have earned success by doing a few things really well, you can develop new products and expand into new coffee territories. As you grow your brand in the future, you will have the support of loyal fans you have gained by starting with a small focus and producing a few excellent products first. Staying focused also provides you an opportunity to create a system that you can replicate in the future with other products.
5. Price According to Perceived Value
The success of your coffee brand will also depend on smart pricing. If your products are priced too high, consumers will turn to more affordable options, but if your products are priced too low, you may not generate enough revenue to stay afloat. When determining the price for your coffee and coffee products, price each product individually based on customer expectations and perceived value, instead of applying mark-ups to all products equally.
In general, well-known products, such as regular coffee, should be priced at their market value. Even if you offer the best cup of coffee around, customers will be hesitant to pay more than market value, especially when your brand is not yet established. Specialty offerings or unique products, on the other hand, can be priced higher as customers are willing to pay more for exclusive or high-quality products. Pay attention to how your competitors’ products are priced to determine what is appropriate for your target market. You may be able to increase your prices down the road as you gain loyal fans who recognize the quality and value of your products and services.
6. Have the Best Customer Service
Whether you are communicating with your customers in person or online, top notch customer service is an essential way to earn trust and respect for your coffee brand. While customers may be attracted by the high-quality coffee you offer, outstanding customer service is what turns these regular customers into loyal fans of your brand. Good customer service will show your customers that you care about their needs and want to provide a memorable and enjoyable experience from the minute they step through your doors or arrive on your website. Here are just a few ways to have the best customer service around:
- Listen and respond to your customers: Customers love to know that their needs and wants have been heard. When you respond quickly to customers, they know they are your top priority and that you value their business.
- Provide fast service: Show your customers that their time is valuable by filling orders quickly and never keep them waiting. When you deliver services and products promptly, your customers know they can trust your brand.
- Be friendly and enthusiastic: Your customers will be excited to buy products they love from your brand, so return their enthusiasm in every interaction. Providing positive and friendly service will make your customers feel welcome to offer feedback about your brand and will make their overall experience more enjoyable.
- Make the experience effortless: Whether they are shopping in a store or browsing online, customers want a simple and straightforward buying experience. Remove any hurdles that make it hard for customers to choose and purchase products. When the purchasing process is effortless and enjoyable, customers will be more likely to buy from you in the future.
7. Understand What You’re Really Selling
Every business, including your coffee brand, is more than just the product that it sells. Each product or service satisfies a deeper need for your customers, whether it is the comfort of a warm beverage or the knowledge they are helping the world by purchasing sustainable coffee beans. Perhaps that deeper need is simply an affordable and reliable boost of caffeine to power them through the day. By understanding the underlying needs of your customers, you can create products that better satisfy those needs and make business decisions that keep them coming back. Your brand can tap into the deeper motivations of your customers to produce more effective marketing and further grow your brand. While it is important to deliver a great product, do not forget that your brand is an experience that involves everything your brand stands for. When you can connect with customers on a deeper level, you gain loyal fans who will support and grow your brand.
10 Products Coffee Brands Should Consider Selling
Wondering what other products your coffee brand can sell? Here are 10 ideas that can help grow your coffee brand.
1. Whole Bean Coffee
Whole bean coffee is a must-have. It provides your customers with an irresistibly fresh taste while offering them the flexibility of grinding the beans to their liking. As some coffee brewing methods need different grinds — such as fine for espresso or coarse for French press — selling whole bean coffee lets customers enjoy your blend the way they like best.
2. Ground Coffee
Many customers prefer the convenience of ground coffee in the morning or for their afternoon pick-me-up. For an everyday option your customers can count on, offer various ground coffee roasts and flavors ranging from French Roast to French vanilla. Consider organic or decaf coffees as well to reach a broader customer base.
3. Cups for Keurig
For your customers who want convenience, you can offer a collection of cups designed specifically for Keurig machines. These small, convenient cups ensure the coffee stays fresh and a perfect pour is achieved each and every time.
4. Pods for Nespresso
Similar to cups for Keurig, pods for Nespresso machines offer your customers the quality and sophistication they crave packaged in easy-to-brew pods. With a range of flavorful coffees they can make quickly, your customers will be stocking up and counting on you to keep them energized throughout the day.
5. Cold Brew Packs
Adding a unique option like cold brew pitcher packs will appeal to your experimental or non-traditional coffee drinkers. The cold brew method has recently gained popularity due to its smooth, bold taste.
6. Seasonal Coffee Flavors
Keep your customers coming back and feeling festive all year long with seasonal coffee flavors. From peppermint to pumpkin spice, these delightful blends are always popular whenever the seasons change.
7. Compostable Cups for Keurig
Your customers who care about making eco-friendly choices will be thrilled to see compostable cups for Keurig machines on your shelves. These cups, filled with the same high-quality coffee, are BPI certified 100% compostable and break down once they are disposed of.
8. Reusable Coffee Filters
Reusable coffee filters are another eco-friendly option coffee brands should consider selling. They will also appeal to customers looking for a way to save money on the paper filters they go through when brewing their favorite coffee.
9. Coffee or Travel Mugs
Who doesn’t want to treat themselves to a new mug or gift one to someone they love? Having an assortment of coffee and travel mugs assures your customers have plenty of options for enjoying their favorite coffee at home or on the go.
10. Gift Cards
Gift cards are one of the most popular gift ideas for birthdays and holidays. Offering coffee gift cards allows your customers to choose the amount they want to give to a coffee-loving friend, family member or co-worker.
Selling Coffee Online FAQs
Check out some frequently asked questions and answers about selling coffee online.
Is an Online Coffee Business Profitable?
Considering that 64% of the United States population drinks coffee and the global e-commerce market has been booming in recent years, the answer is yes, it can be. With plenty of people in the market for coffee and many of them making purchases via the web, you can meet them right where they need you by providing high-quality coffee products direct to consumers online.
Do You Need FDA Approval to Sell Coffee Online?
According to the Food and Drug Administration (FDA), people operating food businesses out of their private residences don’t need to be registered with the FDA, as those places don’t qualify as facilities. Still, you should review the FDA’s and your state’s regulations to double-check that you don’t need approval.
Does Joe’s Garage Coffee Have a Minimum Order Size?
Joe’s Garage Coffee has varying minimum order sizes depending on the type of product you order from us. Our goal is to offer the lowest minimum order sizes in the specialty coffee industry. If you’re interested in starting small, we can point you to the right product type.
How Much Does It Cost to Start an Online Coffee Business?
While starting any kind of business can come with considerable upfront costs, launching an e-commerce company means you can cut some of the traditional startup expenses, like investing in equipment or a storefront. Most of your investment will go into building and marketing your unique brand and creating your coffee products — which we can help with. Especially if you’re one of the coffee entrepreneurs looking to make your mark in the industry.
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