Coffee is a prominent niche in e-commerce worldwide.
Turn your passion for coffee into a profitable business by following our quick guide. Source: Shutterstock.
If you are a newbie entrepreneur with limited resources and budget, selling coffee from home is the way to go. As long as you have a true passion for the art of coffee and an entrepreneurial mindset, your business will be up and running in no time by following the steps below.
1. Conduct research and planning
You won’t be able to handle the pressure of running a business, no matter how much money you invest, if you don’t ensure proper research and planning. Market trends, competitors, and customer restaurant mailing list preferences – these are the three pillars of a favorable strategy before starting a business of any kind. For coffee e-commerce , this step requires extra scrutiny. Depending on where you are, the coffee landscape can be either calm or highly competitive, and there’s only one way to find out what you’re about to run into: roll up your sleeves and familiarize yourself with the current state of your chosen niche.
Are you just starting out with limited resources? Check out this GemPages blog post to find your way more easily:
Starting an eCommerce Business with No Money: The Complete Guide for 2024 (+ Exclusive Promotion)
2. Decide your business model
We use the term “coffee brand” loosely, as each company has its own business model. Some brands may roast their own beans, while others opt for a simpler labeling method. The good thing about having an e-commerce store is that it’s easy to trial and error and reinvent yourself later if necessary. There are business models that are more common than others, but it’s essential to take them with a grain of salt, as each business requires unique propositions. That said, here are some of our suggestions for your future coffee business:
Self-roasting: Why not try selling coffee beans from your own roaster? Despite the daunting initial investment, you will receive full control over the products in return. The eco-friendly aspect also makes this method worth considering.
Dropshipping – Despite its title as the best of eCommerce, dropshipping is an excellent business model for newbie sellers thanks to its all-in-one operating model. That said, not having full control over products could hamper quality control and brand image in the long run.
White label or private label – By partnering with an exclusive supplier, you can avoid the whole equipment problem. It’s an alternative to dropshipping, as you have more control over the taste and quality of your coffee products.
Wholesale – If you have the means, aim high by becoming a wholesaler. Your duty is to provide a large quantity of coffee products to smaller retailers, local coffee shops, bakeries, etc. This is a good move to build a long-lasting business, but there is a risk that profit margins will be low.
More from GemPages: Dropshipping vs.
Create your own coffee brand online in 7 steps
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