The global pandemic changed the food industry forever. When everyone was confined to their homes, food ecommerce became the way for many to buy such products. In fact, the food ecommerce market is expected to be near $1 billion market size by 2026, something which was unfathomable as of the start of 2020.
So, are you wondering how you can sell food & drinks online through your e-commerce store? Food products are often difficult to start because of the restrictions and regulations. But worry not! In this article, we will discuss how you can start selling food products online with ease!
How To Sell Food & Drinks Online In 7 Steps
Here are the steps you need to take when you want to sell food & drinks online:
Step#1 Ideation For Your Business Ideas
Every successful business begins with a well-thought-out idea and the food industry is the same. That is why you need to think about what kind of food or drinks you want to sell in your ecommerce store. Whether it’s homemade jams, craft beverages, or organic snacks, your product should reflect something you’re passionate about. So for your business ideas, here is what you need to know:
- Understanding Your Market: Are you catering to busy professionals looking for quick, healthy meals? Or perhaps you’re targeting health-conscious individuals seeking organic or gluten-free options? Once you understand the market you want to enter, you can narrow down your target audience.
- Defining Your Unique Selling Proposition (USP): Customers respond to value over features. So once you know which customers you are targeting, you can find the USP or unique selling point to provide that value proposition to your potential customers. Clearly defining what makes your product unique will guide your branding and marketing efforts.
- Creating a Brand Story: Now you get to create the brand story that your customers can get behind. With knowledge about your audience and USP, you can craft a compelling brand story to emotionally connect with your customers and show them exactly why you are unique and special to others.
2. Understanding Legal Food Requirements
Food businesses are subject to strict regulations to ensure consumer safety. Navigating these legal requirements can seem daunting, but it’s a critical step in establishing a legitimate and trustworthy business.
A major reason why food e-commerce is not everyone’s first choice is the legal food requirements. You are subjected to strict regulations that you need to follow and maintain. Otherwise, you might lose your business. So here is what you need to know about legal requirements:
- Licensing and Permits: Depending on your location, you may need various licenses and permits to legally sell food online. Not just that, but different foodstuffs might have different requirements as well. So get an idea about the food type you will be selling and the necessary licenses and permits you need to get started.
- Understanding Food Safety Regulations: The Food and Drug Administration (FDA) regulates food labeling and safety in the U.S. These types of regulatory bodies are in every country/region which you need to adhere to. What they require above everything else is having correct labels for your food. Your labels must accurately disclose the ingredient lists, allergen warnings, nutritional information and everything else on the labeling.
3. Choosing the Right eCommerce Platform
The platform that you choose is an important part of starting to sell food & drinks online. Here is what you need to know:
- Evaluating eCommerce Platforms: There are many different eCommerce platforms out there to choose from. Platforms like Shopify are popular choices for food businesses due to its features available for store owners. The right platform will provide you with all these features to make sure your business starts on the right foot.
- Features to Consider: There are essential features that you need for your e-commerce website. You need an inventory management system, a customer relationship management tool, good mobile responsiveness, options for managing perishable goods and many more. Browse all the features the ecommerce platform has to offer to make a more informed decision.
- Building Your Online Store: The platform you choose has many options to make and design the website. So get started on building your very own food and drinks store on the platform (or hire someone to do it for you).
While creating a custom-built website is also an option, it is a large investment and you won’t have the features available on eCommerce platforms.
4. Designing Your Brand and Packaging
If you think about iconic food brands, you often remember the packaging first. The design for it serves as both the marketing tool and keeping the food safe during shipping. Here are other things you need to consider:
- Packaging Design: The design should be eye-catching, with clear labeling that includes your logo, product name, and any necessary nutritional information.
- Sustainable Packaging Options: There is a rise in sustainability in ecommerce and customers might find your store more appealing if you offer such an option. For instance, if you’re promoting an eco-friendly brand, consider using recyclable or biodegradable packaging materials.
- Packaging Consistency: You will want the packaging to be as consistent as possible when you have it delivered. So think about investing in professional packaging to get the done for you
5. Deciding Where To Set Up Production
Now you come to the part of preparing and making the food. For food ecommerce, you usually have two options for this:
- Home-Based Production: Starting with home-based production is cost-effective but requires strict compliance with local food safety regulations, including kitchen inspections and certifications. So begin with a small product line to maintain quality control while refining your processes before expanding.
- Commercial Production: As demand increases, you might need to move away from your home to a commercial kitchen to accommodate a larger-scale production. While it might be an increase in efficiency, remember that you will have to maintain the food regulations in a commercial kitchen.
Wherever you are making the food, know that you need to practice and perfect the preparation process so the consistency of food remains the same no matter who is ordering.
6. Shipping and Handling Considerations
The last thing you need is for the food products to be damaged in shipping. So consider these points:
- Packaging for Freshness: For perishable items, insulated packaging with gel packs or dry ice is often necessary to maintain the correct temperature during transit. The packaging must also be sturdy enough to withstand handling during shipping. Clearly label packages as “Perishable” and include handling instructions for both the carrier and the customer.
- Choosing Shipping Partners: Partner with carriers experienced in handling food products. They will ensure that the food package gets delivered safely.
Shipping costs can be a significant expense, especially for heavy or temperature-sensitive products. So make sure you are choosing the right shipping method that makes sense for your business.
7. Marketing Your Food Products
No one will buy your food if they don’t know about them. So once you have everything set up, you need to make sure to market your products for visibility online. Here are some tips for you to market:
- Influencer and Affiliate Marketing: Gain a wider audience reach with the help of food bloggers and influencers. They can help you expand on your customer base and become a source of self-marketing strategy through word-of-mouth.
- Exploring Wholesale and B2B Opportunities: Do not limit yourself to individual customers. Seek out local businesses who are in need of catering. You could also expand your food products into supermarkets through a wholesale partnership so you have more eyes on your business beyond ecommerce.
- Customer Retention and Loyalty Programs: Food products are interesting because they will always have demand for it. So retaining customers is very easy. To help keep customers coming back, offer loyalty programs so they are encouraged to keep buying from your store.
- Subscription Services: Subscription boxes are a growing trend in the food industry. If it makes sense for your business model, you can sell food products to customers on a weekly basis as a subscription and regularly send it out to them.
Once your business is established, focus on strategies to scale and grow. Expanding your product line, exploring new sales channels, and building customer loyalty are key to long-term success.
Bottom Line
Remember, to sell food & drinks online, you need to create a well crafted plan and then execute it. There are little margin for errors and you must ensure you keep up with regulations. But ultimately, it is a great business model where you can easily mix in passion for food with your business to create a long-standing successful ecommerce business.
