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How to Start an Online Coffee Business (2024)
Millions of people around the world consume coffee each day. For many, coffee is more than just a drink- it's a daily ritual, a staple part of the morning that kick-starts the day. This love for coffee has fueled a booming online market, creating endless opportunities for those looking to start a business. With the industry set to grow to $323.37 billion by 2030, now is the perfect time to get involved.
In this guide, we’ll show you how to start an online coffee business- from choosing the right business model to building a standout brand.
Why Sell Coffee Online in 2024?
Over 2.5 billion cups of coffee are consumed in the world every day. That's a lot of coffee!
To better understand the opportunities in this thriving market, let’s look at the coffee market's projected growth over the next few years.
Coffee Market Growth (2023-2030)
Year | Revenue (USD Billion) | Growth Rate |
---|---|---|
2023 | $212.5 billion | +4.7% |
2024 | $223.8 billion | +5.4% |
2025 | $235.9 billion | +5.4% |
2026 | $248.6 billion | +5.4% |
2030 | $323.37 billion | - |
Source: Grand View Research
This yearly growth highlights the potential of the online coffee market. With rising revenue projections and increasing consumer demand, now is a perfect time to tap into this lucrative industry. And with more people now buying online, new businesses have the chance to meet this growing demand by selling coffee online. Whether you’re offering premium blends, innovative flavours or single-origin beans, there’s plenty of room to find your niche.
The Benefits of Selling Coffee Online
Growing Demand
Demand for coffee is huge. In 2022 alone, over £1 billion worth of coffee was imported by UK businesses. As more customers turn to online shopping for convenience, selling coffee online is a great way to reach this audience.
Customer Loyalty and Repeat Purchases
Once coffee drinkers find a blend they love, they usually stick with it. This means paying customers are more likely to return when their coffee cups run dry. Subscriptions are an excellent way to secure recurring revenue while providing added convenience for your customers. By offering regular deliveries of their favourite coffee—whether weekly, fortnightly or monthly—you create a hassle-free experience that keeps customers coming back. This not only helps you build a loyal customer base, it also provides a steady and predictable income stream for your business.
Plenty of Product Options
Coffee is incredibly versatile with countless forms and flavours to offer: whole beans, ground coffee, pods, cold brews, flavored blends and more. You can niche down to focus on a single type or provide a variety of options. Offering options like decaf, organic or fair-trade-certified coffee can also help you stand out and appeal to particular audiences.
High Profit Margins
Selling coffee can carry favourable profit margins, especially for premium or specialty varieties that customers are willing to pay more for. Of course, your chosen business model will influence your bottom line.
For example, if you're roasting your own coffee to create a unique and flavourful blend, you will likely command higher prices. But this must be balanced out with the costs involved in the roasting process. On the other hand, models like private labeling and dropshipping have lower startup costs, making them more accessible, but won't yield as much profit.
By weighing the trade-offs between upfront investment and potential returns, you can choose the approach that best aligns with your budget.
Choosing Your Business Model
There are several ways you can set up a coffee business, with each model having pros and cons. Ultimately, the right choice will depend on your goals, resources, target audience and the type of customer experience you want to create.
Here are four popular business models for selling coffee online:
Roasting and Selling Your Own Coffee
This model involves sourcing green coffee beans and roasting them yourself. Going this route gives you full control over the flavour, quality and uniqueness of your coffee, allowing you to refine your final product to perfection. With that being said, roasting requires a higher initial investment in equipment. But if you have the resources and dedication to produce something delightful or unique, this could be the best way to go.
Reselling from Wholesalers
Reselling from wholesalers is a straightforward model for selling coffee online. You purchase roasted coffee beans or pre-made coffee products in bulk from a wholesaler, store them, and then ship orders directly to your customers. This approach allows you to offer a variety of ready-to-sell products without needing to manage production or branding.
If this is the business model you're using, you'll need to factor in logistics considerations. For example, you’ll need adequate storage to keep your coffee fresh and an efficient shipping process to ensure timely delivery. Additionally, you'll need to keep a close eye on stock levels, making sure you have enough to meet demand.
Reselling is ideal if you want to focus on curating a diverse product range without the complexities of roasting or sourcing raw beans. By choosing reliable wholesalers and investing in quality control, you can build a reputation for offering great coffee products that keep customers coming back.
Private Labelling
Private labelling lets you source unbranded coffee from a supplier and sell it under your own brand. This model is a great option if you want to build a custom coffee brand without actually producing the product yourself.
In practice, you can work with suppliers who provide a range of coffee options, such as single-origin beans or flavoured blends, and customize the packaging with your branding. This flexibility allows you to tailor your offerings to match your target audience’s preferences, whether that’s premium luxury or eco-conscious buyers.
Private labelling requires less upfront investment, allowing you to spend more time and money on building the brand and connecting with customers.
Dropshipping Coffee
Dropshipping is a business model where you sell coffee products through your website, but instead of holding inventory or managing shipping, your supplier handles all fulfillment. When a customer places an order on your site, the supplier processes, packages and ships the product directly to them.
This model appeals to those just starting out with limited budgets as it has the lowest upfront costs. You don’t need to invest in inventory, warehouse space or complex shipping processes. Your main role is managing the online storefront, listing products and driving traffic to your site.
Whilst the dropshipping model has some advantages, it does come with challenges. You have less control over product quality and shipping times, as these are managed by the supplier. Profit margins are also lower since the supplier takes a share of the revenue. Nonetheless, dropshipping is ideal for entrepreneurs looking to test the market with minimal risk.
How to Start an Online Coffee Business (2024)
To help you build a successful online coffee business, here’s a step-by-step guide that covers the essentials – from developing your brand and building your website to uploading your products and marketing them.
1. Develop Your Brand
Creating a unique brand identity is essential for standing out in the competitive coffee market.
Start by defining what sets your brand apart. Is it ethically sourced beans, unique blends and flavour profiles, or a commitment to sustainability? Once you have your focus, build your brand around these qualities, creating a memorable name, logo and brand voice that resonates with your target audience.
2. Decide Which Coffee Products to Sell
Deciding which types of coffee to sell is a key step in starting your online coffee business. Your product range will define your brand and target audience. Here are some options to think about:
- Whole beans vs. ground coffee: Whole beans work for customers who enjoy grinding their coffee at home, while ground coffee is more convenient for those who prefer ready-to-brew options. Having both can appeal to different needs.
- Single-origin vs. blends: Single-origin coffee focuses on the flavours of beans from one region. Blends allow you to combine flavours and offer something that might be more unique and memorable.
- Pods and capsules: These are popular for people who want quick and easy coffee. Adding pods or capsules to your range can attract busy customers who value efficiency.
- Cold brew and ready-to-drink: Bottled cold brews and ready-made drinks are great for younger customers or those looking for grab-and-go options.
- Specialty coffee: Consider selling options like decaf, flavored coffee or organic and fair-trade certified products. These can attract specific types of buyers and add variety to your range.
Tips for deciding your range
Start small: Begin with just a few options. This will help you manage your initial costs whilst learning what your customers like.
Pick quality suppliers: Whether you’re roasting or sourcing, work with suppliers who can provide consistent, good-tasting coffee.
Add sample packs: Let customers try different coffees by offering small packs. This is a great way to introduce your brand to the market and encourage repeat orders.
The type of coffee you sell will shape your store’s identity. Start simple, keep the quality high and offer something that keeps your customers coming back.
3. Build Your Online Store
To sell coffee online you’ll need to build an ecommerce website. Your website is your digital storefront, so it should be easy to navigate, visually appealing and aligned with your brand. Remember, shoppers are more likely to make a purchase after a positive online shopping experience, so it’s imperative that your store provides one.
Here are some top tips for building the perfect online store.
Steps to build your store:
1. Choose an ecommerce platform
Joining an ecommerce platform is the best method for building an online store. Select a platform that offers flexibility and features suitable for your business. Platforms like ShopWired provide professional-looking design templates with easy customisations, secure payment options and a plethora of ecommerce tools for making sales, marketing and managing inventory and orders.
2. Design your website
ShopWired offers over 40 template themes to choose from, each designed with the customer experience in mind. These themes also come with drag-and-drop customisation, making it easy to create the perfect store for your business.
3. Add your products
Include detailed descriptions, clear pricing and high-quality images for each product. The more engaging and informative your product pages are, the more likely customers are to make a purchase. To enhance the shopping experience, consider adding filters for categories like 'whole beans,' 'blends' or 'cold brew.' These features make it easier for customers to find exactly what they’re looking for, improving their overall experience and increasing the chances of a sale.
4. Set up payment and shipping options
Offer multiple payment methods to cater to different customers. For shipping, make sure to include options like standard, express or free delivery for larger orders. ShopWired offers integrations with over 40 payment gateways, giving your options plenty of ways to pay.
5. Optimise for mobile
Over 60% of ecommerce purchases happen on mobile devices. This means it's imperative that your website looks good and functions properly across both desktop and mobile devices. If you're using a platform like ShopWired, all themes are fully responsive, automatically adapting to different screen sizes for a seamless shopping experience. With professional-looking designs and easy customisation options, you can create a visually appealing and user-friendly store that works effortlessly on any device.
Tips for a great online store:
Make it fast: Customers expect websites to load quickly. Compress images and choose a platform with fast hosting to reduce loading times.
Highlight your brand story: Use an “About Us” page to share your passion for coffee. This adds a personal touch and helps connect with your audience.
Add customer reviews: If possible, feature reviews to build trust and help new visitors make buying decisions.
Your online store is the heart of your business, so take time to make it a space that reflects your brand and makes shopping enjoyable.
4. Optimise Your Product Listings for SEO
Once your products are listed on your website, it's essential to give them the best chance of being found by potential customers. Most online shoppers start their journey with a search engine, so optimising your product listings for SEO can significantly boost visibility and drive traffic to your store.
Here are some tips for optimising your product listings:
- Use long-tail keywords: Focus on specific, intent-driven phrases like “organic single-origin Ethiopian coffee” or “decaf dark roast coffee pods.” These keywords are less competitive than broader terms like “coffee” and are more likely to match what your ideal customer is searching for.
- Write unique, detailed product descriptions: Make your descriptions stand out by highlighting features, benefits and specifications. For example, mention flavour notes, origin and brewing recommendations. If you're selling products that other businesses also stock, such as private-labelled or dropshipped coffee, ensure your descriptions are unique. Avoid copying supplier text to improve SEO rankings and engage your customers better.
- Optimise product images: Include high-quality images for each product. For example. you might include close-ups of the whole or ground coffee beans, images of the final drink, packaging, and so on. The more images you include the better, as this gives customers a better browsing experience, and can also boost the website's SEO performance. Also make sure to name image files descriptively (e.g., “colombian-arabica-coffee-beans.jpg”), and add alt text that includes relevant keywords and describes the image for accessibility and SEO purposes.
- Incorporate customer reviews: Reviews provide fresh, user-generated content that can improve your search rankings. They also add social proof, encouraging new customers to make a purchase. Consider adding a review section under each product listing.
- Improve technical SEO: Ensure your website has fast loading times, is mobile-friendly and uses clean URL structures. For example, a product URL like yourstore.com/ethiopian-coffee-beans is more SEO-friendly than yourstore.com/product12345.
Why SEO Matters for Coffee Businesses
Good SEO practices help your products rank higher on search engines, making it easier for customers to find you. By combining detailed, keyword-rich content with a technically sound website, you’ll attract more visitors and give your products the visibility they deserve.
5. Marketing Your Coffee Business
Once your website is built and launched, it’s time to focus on getting your coffee in front of the right audience.
Here are some key strategies to promote your coffee business:
1. Social Media Marketing
Platforms like Instagram, Facebook and TikTok are ideal for showcasing your coffee brand. ShopWired's social commerce integrations let you connect your store directly to these platforms, allowing customers to discover and shop your products from their social feed.
Here are some ways to make your products stand out on social media:
- Share eye-catching photos of your products.
- Post behind-the-scenes roasting videos.
- Create tutorials on making the perfect brew.
- Engage with your audience through polls and Q&A sessions.
- Use interactive techniques like quizzes or contests to boost engagement.
2. Content Creation
Content is king in today’s digital age. Whether you’re working with a marketing team or taking a DIY approach, creating engaging and valuable content can establish your brand as a trusted name in the industry.
- Here are some ideas to kickstart your content creation:
- Share behind-the-scenes videos of the roasting or production process.
- Use high-quality images to showcase your products in detail.
- Film video reviews of your products.
- Announce new product launches or special editions.
- Start a blog covering all things coffee.
Using a platform like ShopWired simplifies the content creation process with plenty of features to help you create and promote your content. You can add videos directly to product pages, link to your social media pages, display your instagram feed on your site, build a blog page and more.
3. Email Marketing
Email marketing is an important strategy to keep your customers engaged and drive repeat purchases. Use emails to share exciting updates like new product launches, exclusive discounts or tips on how to get the most out of your coffee. A well-crafted email can remind customers why they love your brand and encourage them to return for more.
To make the most of your campaigns, segment your audience based on their preferences or past purchases. For example, recommend a new blend to customers who regularly buy whole beans or offer a subscription discount to those who’ve made multiple purchases.
With ShopWired's seamless integrations with platforms like Mailchimp and Klaviyo, you can easily design personalised campaigns, build targeted email lists directly from your store and track performance to see what resonates most with your audience.
4. Influencer Partnerships
Collaborating with influencers can help you reach a wider audience and build trust with potential customers. Focus on influencers who align with your brand values and have an engaged following of coffee enthusiasts. Whether they’re showcasing your coffee in a morning routine video or sharing a tasting review, their content can introduce your brand to new customers in an authentic way.
To make the most of influencer partnerships, provide them with clear guidelines and creative freedom to highlight what makes your coffee unique. You can also offer exclusive discount codes or affiliate links to track sales driven by their content.
6. Exploring Multichannel Sales
Expanding your coffee business beyond your website is a smart way to reach more customers. Multichannel sales allow you to showcase your products on popular platforms where your audience already shops, boosting visibility and creating new growth opportunities.
Listing your products on platforms like eBay, Google Shopping, Facebook and Instagram broadens your reach, offering convenience and variety to shoppers while diversifying your revenue streams.
To succeed with multichannel selling:
- Offer platform-specific promotions: Use exclusive deals or discounts on certain platforms to attract new customers and encourage purchases.
- Engage directly with platform users: On social platforms like Instagram, create posts, stories, and ads to interact with your audience and drive traffic to your listings.
- Track performance across channels: Monitor which platforms generate the most sales or engagement to focus your efforts effectively.
With ShopWired, integrating your store with these platforms is straightforward. Manage inventory, orders, and listings from a single dashboard, saving time and ensuring accuracy. By embracing multichannel sales, you can reach new customers, grow your revenue and create a stronger presence in the coffee market.
7. Tracking Performance with Analytics
To grow your coffee business, understanding how your store performs is essential. Analytics provide valuable insights into customer behaviour, helping you identify opportunities for growth and areas needing improvement.
Monitor key metrics:
Track important data points using tools like Google Analytics or Google Search Console. Focus on metrics such as:
- Traffic sources: Discover how customers are finding your store—whether through organic search, social media or paid campaigns.
- Conversion rates: Analyse the percentage of visitors turning into paying customers to identify potential improvements to product pages or the checkout process.
- Top-selling products: Pinpoint your most popular offerings to inform marketing strategies and inventory management.
Understand customer behaviour
Dive deeper into how customers interact with your site by analysing:
- Time on page: Identify which pages keep visitors engaged and which may need more compelling content.
- Exit points: Learn where customers are leaving your site, such as during checkout, to address potential barriers to completing a purchase.
Leverage data for better decisions
With the insights provided by analytics, you can make informed decisions to optimise your business. For example:
- Refine marketing campaigns to focus on the channels driving the most traffic.
- Highlight best-selling products and adjust inventory strategies for underperforming items.
- Test changes like new images or updated descriptions and track their impact on performance.
ShopWired provides basic reporting tools to help you track many of these insights. For deeper analysis, integrating external tools like Google Analytics and Google Search Console can offer a more comprehensive view of your website's performance and help you take your coffee business to the next level.
Why Choose ShopWired for Your Coffee Business?
Choosing the right ecommerce platform is essential to building a successful online coffee business. ShopWired offers a host of features specifically designed to help you sell online with ease:
Full Suite of Ecommerce Features on All Price Plans
ShopWired is built for the purpose of ecommerce, offering all the tools you need on every pricing plan. Each feature is designed to simplify your operations and give you complete control over your store, ensuring a smooth experience for both you and your customers.
Over 40 Free, Customisable Themes
ShopWired provides a selection of over 40 customisable themes that are free to use. Each theme is optimised for mobile shopping and designed to create a professional and visually appealing online presence. With easy-to-use customisation options, you can build a website that matches your brand and provides customers with an excellent shopping experience.
Integration With Dropshipping Suppliers
If you’re considering dropshipping coffee, ShopWired’s integrations make it simple. Connect with suppliers like AliExpress to list products on your store effortlessly. The platform automates much of the process, from product uploads to order fulfillment, so you can focus on growing your business.
Reliable Hosting and Security
When it comes to security and reliability, ShopWired is second to none. With 99.99% uptime guaranteed and robust measures to protect your customers’ data, you can trust that your store will remain safe and accessible at all times.
Top-Rated Support
ShopWired’s friendly and knowledgeable support team is available to assist with everything from setting up your store to tackling technical challenges. Their dedication to customer satisfaction is one of the reasons ShopWired consistently receives high ratings on Trustpilot.
Marketing and SEO Tools
ShopWired provides built-in marketing and SEO tools to help you drive traffic and boost sales. From optimising product pages for search engines to running effective email campaigns, the platform gives you everything you need to promote your coffee business successfully.
Multichannel Sales Integration
ShopWired makes it easy to expand your reach by integrating with popular sales channels like eBay, Facebook, Instagram and Google Shopping. Managing your listings across platforms is seamless thanks to ShopWired’s centralised dashboard.
Multiple Payment Options
With ShopWired’s extensive payment gateway integrations, you can offer your customers a wide variety of payment options. Displaying trusted payment provider logos on your website can also build customer confidence and encourage more sales.
By choosing ShopWired as your ecommerce platform, you’re partnering with a solution that understands the unique needs of selling coffee online. Our comprehensive features, customisation options and reliable support make ShopWired an excellent choice for building a standout coffee brand in a competitive market.
FAQ: Starting an Online Coffee Business
What types of coffee should I sell?
You can offer a variety of coffee products, such as whole beans, ground coffee, single-serve pods or cold brews. Consider catering to niche markets with options like organic, fair trade or flavoured coffee to attract a diverse audience.
How much does it cost to start an online coffee business?
Startup costs vary depending on your business model. Dropshipping has the lowest upfront costs, while roasting your own beans or private labeling requires more investment in equipment or inventory. Beyond sourcing coffee, you'll need to factor in the cost of building a website and potentially money spent on ads. ShopWired makes this more affordable with simple price plans that include essential ecommerce features.
How do I source my coffee?
Sourcing options include working with coffee roasters, partnering with suppliers for private-label products or purchasing green beans to roast yourself. Focus on suppliers that meet your quality, pricing and ethical standards.
What’s the best way to market my coffee business?
Use a mix of strategies like social media marketing, content creation, email campaigns and influencer collaborations. Platforms like ShopWired offer integrations with marketing tools to simplify these efforts.
Should I offer subscriptions?
Yes, subscription models are a great way to secure recurring revenue and build customer loyalty. Subscribers enjoy the convenience of regular deliveries, and your business benefits from predictable income.
Do I need to handle shipping myself?
It depends on your business model. Dropshipping eliminates the need to manage shipping, while private labeling or roasting your own beans may require you to package and ship orders. ShopWired integrates with shipping providers to streamline fulfillment.
How do I attract and retain customers?
Focus on building a strong brand, offering high-quality products and engaging with customers through social media, email marketing and loyalty programs. Highlight your unique selling points, like ethical sourcing or innovative blends, to stand out.
Can I sell coffee on multiple platforms?
Absolutely! Multichannel sales help you reach more customers. ShopWired allows you to integrate your store with eBay, Instagram, Facebook and Google Shopping for a seamless multichannel experience.