Almost three-quarters of Americans drink coffee every day, so it’s no surprise America is the world’s biggest coffee market. And Americans love buying coffee online, so much so that the American ecommerce coffee industry is valued at a whopping $3.7 billion.
Whether you’re a local roaster looking to sell coffee online, or you’re an ecommerce entrepreneur just getting started with selling coffee, we’ve developed a comprehensive guide to help you create a successful online coffee business.
Ahead, learn how to start selling coffee online, plus get five tips for how to grow your online coffee business.
Table of contents
Start selling coffee online in 6 steps
- Determine your target audience
- Decide what products your coffee store will sell online
- Decide on your business model
- Find your coffee supplier
- Develop your brand identity
- Set up your online coffee shop
If you’re a café owner or roaster looking to move your retail coffee business online, you’ll want to skip ahead to step six. If this is your first foray into the coffee business, your journey will start at the very beginning.
1. Determine your target audience
To cultivate a dedicated customer base in a competitive market, you’ll first need to identify a target audience for your online coffee business. You’ll consider the needs of coffee drinkers in your target market as you work to develop your brand identity.
To figure out your target market, ask yourself:
- Who is your ideal customer? For example, does your ideal customer buy single-origin specialty beans to grind and brew at home, or do they opt for the convenient options like espresso pods or ground coffee? Which current coffee trends are they engaging with on social media accounts?
- What are their specific needs and pain points? For example, do coffee lovers in your target market have difficulty finding specialty coffee beans with flavor options like hazelnut? Or what about how tricky it can be to find specialty decaf coffee beans? In that case, you might decide to enter the specialty flavored or decaf coffee bean market niche.
David Abrahamovitch, the founder of Grind, a brick-and-mortar coffee shop that expanded into direct-to-consumer online coffee sales, discussed how his company identified its target customers and their pain points in an episode of Shopify Masters.
“I think we wanted to be the antithesis to the coffee shops where you went in and were made to feel silly because you didn’t know if you wanted the Guatemalan or the Ethiopian single origin,” David said. “It was, ’You know what? I just want a flat white, but I just want it to be much better than it is from those guys next door. But I’m not necessarily here for a coffee education.’ That was the customer that we wanted.”
Grind has come a long way since it opened its first physical storefront in London, but its ecommerce arm has maintained the attention of its audience—and Grind’s strong brand identity that caters to those loyal customers.
“I knew that we had this brand that people loved,” said David. “They don’t just like it, they love it. And that’s a really special thing."
2. Decide what products your coffee store will sell online
Selling coffee online can encompass more than selling roasted coffee beans. You might consider selling coffee pods, instant coffee, jugs of cold brew, single-serving cans of coffee, and even coffee-making supplies.
As you consider your product offerings, ask yourself: What problems can my products solve for my ideal customer? For example, Grind decided to innovate on the Nespresso coffee pod to make it more environmentally friendly without sacrificing convenience.
“We needed to find ways to take Grind out of just our physical stores and bring it into people’s homes," David said. “So we started looking into it, and I decided that doing Nespresso pods was a really great way to get into people’s homes, because Nespresso pods are really, really convenient. They’re very easy, and they don’t make any mess. But they’re pretty terrible for the environment. Less than one in three pods are actually recycled. So 29,000 coffee pods go into landfill every single minute.”
David and the Grind team loved the idea of coffee pods, but they weren’t willing to add to the already-staggering environmental problem. So they looked for a solution—and created compostable pods.
They invested heavily in this new offering, and it paid off—thanks to both their vision and fortuitous timing. When the COVID-19 pandemic hit and regulars couldn’t frequent Grind’s retail locations, demand for online coffee sales went through the roof.
3. Decide on your business model
Typically, online coffee shops supply roasted coffee beans to customers in one of three ways: roasting their own coffee, reselling from wholesale coffee brands, or dropshipping (a form of reselling).
- Roasting or producing. This means you’ll buy whole bean coffee from a supplier and roast the beans yourself. That empowers you to retain full control over this step in the production process. If you roast your own beans, your beans will be the foundation for your entire coffee product line.
- Reselling from wholesalers. In this model,you’ll buy roasted coffee beans or pre-made coffee drinks from a wholesaler, store them, and ship them to your customers yourself. If you choose to sell coffee online this way, you’ll need to account for storage and shipping costs, and you’ll also need to develop an inventory management strategy that ensures product availability while minimizing spoilage.
- Dropshipping. You could outsource storage and order fulfillment to a wholesale coffee supplier who works with dropshippers. In this business model, you retain control over your marketing efforts but relinquish quality control responsibilities to a trusted dropshipping partner.
Equipment for coffee roasters can be expensive and takes expertise to operate. If you have the capital and the interest in the craft, or if you’re a café owner with an established setup, this option might be for you. If you’re looking for a simpler and more hands-off option, you might consider reselling or dropshipping instead of competing with other coffee roasters.
4. Find your coffee supplier
There are four main types of coffee beans: Arabica, Liberica, Robusta, and Excelsa. With nearly 60% revenue share in the coffee market, Arabica is the most popular type of coffee bean, but each type of bean has a distinct flavor profile. Choose a bean that will be popular among your target audience: For example, coffee aficionados might be curious to try a non-Arabica bean.
Here’s what to consider when choosing a coffee supplier:
- Product quality. Request samples from your potential supplier to ensure their coffee product meets your standards.
- Customer service. Your supplier should be able to answer any questions you have about how they source and prepare their coffee beans. If a problem arises with availability or quality down the line, you should be able to trust your supplier to clearly communicate the issue.
- Price. Compare different suppliers’ prices to find one that allows you to make a profit on your product. To determine whether or not you’ll be able to make a profit, you might want to design a preliminary pricing strategy for your online coffee store.
You might also want to partner directly with coffee farmers. Just know that cultivating these relationships can take a long time. In an episode of Shopify Masters, Aaron Zack, the vice president of sales, marketing, and strategic projects for the Toronto-based roastery Propeller Coffee, discussed how his coffee business started working with a farm in Brazil.
“In terms of how we got those relationships, it’s tough, because we’re a small Canadian roaster based on the west end of Toronto, so really we need to work upstream through our community of suppliers and brokers and other intermediaries to find those farmers and make those connections,” said Aaron. “So in the eight and a half years that we’ve been roasting, we now have relationships with a wonderful family farm in Brazil that has been winning cups of excellence awards in Brazil for 25-plus years.”
Vitally, you should also consider the ethical implications of the coffee trade—both for the environment and for workers. Fairtrade America certifies brands with ethically sourced coffee products. If commitment to issues like sustainability and social responsibility are important to you and your target market, consider getting your coffee brand certified—and be sure to incorporate your commitment to ethical sourcing into brand messaging and values statements to your audience.
“Great coffee is grown by farmers who care,” Aaron said. “And who care not only about the plants and the coffee and the environment that they’re grown in, but also about their workers and about the community that they’re growing their coffee in.”
5. Develop your brand identity
Building a strong brand identity is crucial in the coffee industry: Your customers already want coffee, you just have to make them want it from you. After you identify your niche market, you’ll need to align your brand marketing with your target audience.
- Define your value proposition. What value do your products provide customers, and how are your products different from those of other coffee brands? Whether it’s your commitment to sustainable farming practices, emphasis on freshly roasted beans, or anything in between, make sure to clearly communicate your value proposition to your customers.
- Choose a name and slogan. Pick a store name and website domain name that’s memorable and communicates not only what you sell online, but the soul of your brand and its mission. You might also want to develop a slogan, which you can do with the assistance of Shopify’s free slogan generator.
- Cultivate a brand voice. Choose a brand voice and use it across all of your marketing materials to maintain consistency in your branding. Ask yourself: How does my ideal customer speak about coffee? You might then decide to mirror your target buyers. For example, if you sell coffee online to aficionados with a depth of knowledge about different types of beans, you might decide to use a scientific voice and employ industry jargon to exemplify your expertise. Alternatively, if your goal is to appeal to coffee drinkers who don’t already know a ton about the industry, you may want to develop a brand personality that’s more approachable and educational in a welcoming way.
- Design your visual brand identity. Pick a logo, brand colors, and typography, and use that clear and consistent branding across all the different facets of your brand. These elements of branding design can make your company instantly recognizable to customers and help you stand out from your competition.
6. Set up your online coffee shop
Whether you’d like to take your brick-and-mortar café online or start an online coffee business from scratch, consider the following steps to start selling coffee online:
- Select an ecommerce platform. You can set up your online coffee store with a free three-day trial from Shopify. Select a pricing plan to get started.
- Choose a theme and customize it. If you’re using Shopify, you can head to the Shopify theme store to find a web design theme that fits your visual brand identity. You can then customize your theme to further develop a distinct visual brand identity for your coffee business.
- Set up essential pages. Prioritize your homepage design, then add essential pages like shipping FAQs, return policy guidelines, and your Contact page. It might help to reference other coffee shops and local roasters to see how they organize their websites to sell coffee online.
- Add products and collections. Take product photos, write product descriptions, and start creating your product pages. Organize your products into collections and featured products to make it easier for customers to navigate your online coffee store.
- Set up shipping options. Choose a shipping service like Shopify Shipping to make sure your customers get their coffee products quickly and inexpensively. You might also consider setting up a local delivery option for nearby customers.
- Set up payment options. Make sure that you’ve enabled a payment processor like Shopify Payments so that you can start accepting payments from your online coffee shop customers. Decide what types of customer payment methods you want to accept, then make sure your checkout page clearly displays those options for customers.
How to grow your online coffee business
- Establish a coffee marketing strategy
- Tell stories
- Consider brand partnerships
- Diversify your product offerings
- Expand into new areas of the coffee industry
Once you’ve launched your online coffee shop, it’s important to find creative ways to help your online coffee business thrive.
Here are five online coffee store growth tips to help you get started:
1. Establish a coffee marketing strategy
Once your online coffee store is open for business, it’s time to get the word out to potential customers. To do that, you need to develop a marketing strategy.
Start by considering where your target audience is active online and what types of content types and topics they’d care to see from your coffee brand online. For example, if you’re an existing coffee shop with an email list and social media following, you might try email marketing and social media marketing campaigns. If you’re a newcomer, now’s the right time to open social media accounts for your coffee company and start to develop a following.
Whatever else you decide to do with your marketing strategy, make sure you don’t overlook the power of showing up in Google searches. Getting your own Google Business Profile is one free way to update your business listings online and earn credibility with your audience. You should also invest in search engine optimization (SEO) tactics that will help your online coffee business show up on relevant search engine results pages (SERPs). Developing an SEO strategy is a content marketing best practice that’ll help you grow brand awareness—a crucial need in the early stages of your coffee brand.
2. Tell stories
In the saturated coffee market, you can stand out from the crowd (and provide value to customers) by telling your brand story and educating your audience about coffee.
Take, Propeller Coffee, for example: The company shifted from a largely wholesale-based business model to a direct-to-consumer (DTC) model during the COVID-19 pandemic. On Shopify Masters, Aaron Zack talks about how marketing an ecommerce company differs from marketing a wholesale business—and how he realized the importance of storytelling in the competitive ecommerce coffee space.
“The way we’ve decided to focus our storytelling is just to be as nerdy as we are. In our storytelling, there’s a lot of facts and a lot of education and information about our coffee or our processes,” Aaron says. “Whatever it is we’re talking about, we try to be focused on whatever the topic is and not so much on ourselves. People want to hear a little bit about us, but mostly I think they want to learn.”
3. Consider brand partnerships
Developing partnerships is a great way to get your coffee in front of new consumers. For example, Grind developed a partnership with the global social club and hotel chain Soho House. Grind supplies the coffee for all of Soho House’s locations, and Soho House provides Grind coffee in its hotel rooms. It’s a win-win brand relationship.
Just make sure to build partnerships that align with your customer base and brand identity. For example, David considered Grind’s current customer base and London-born brand identity when deciding on the Soho House partnership.
“A lot of our customers are Soho House members anyway,” he says. “We share a lot of values, and I think we were a relatively obvious choice, as a London-born brand, in the same way as I think Soho House is exporting London in a lot of ways.”
4. Diversify your product offerings
Once you start your own online coffee shop, map out a plan for expanding your product offerings over time. This is a great time to establish your store’s product development strategy and set goals for which new products to introduce when.
Take inspiration from the following products as options you might sell online alongside your coffee:
- Coffee makers and accessories. Consider selling brewing kits like kettles, pour-over equipment, or French presses.
- Food items. Cookies, chocolate-covered coffee beans, or chocolate bars might complement your coffee product offerings.
- Other drinks. Think about selling additional drinks like teas and hot chocolates.
- Branded products. Once you’ve cemented your visual brand identity, you might want to sell branded merchandise like coffee mugs, t-shirts, or tote bags featuring your coffee business name and logo.
5. Expand into new areas of the coffee industry
As you grow your online coffee business, you might want to consider entering new areas of the coffee market.
Take James Hoffmann, who’s created a 20-year-long career for himself in coffee. Hoffmann won the World Barista Championship, runs the direct-to-consumer (DTC) brand Square Mile Coffee Roasters, and has a brick-and-mortar café called Prufrock Coffee. He’s also an educational coffee content creator with more than two million followers on YouTube.
James expanded his business into the realm of coffee-related merchandise and collectibles with Tens Hundreds Thousands. “I’d come up with a product idea for a set of dice that would help you make a recipe for coffee brewing,” says James on an episode of Shopify Masters.
But selling coffee and related goods—not to mention dealing with order fulfillment—was an all-new challenge for James. “I was there, sat at a desk stuffing a thousand envelopes by hand, and I was like, ’This is miserable work. What am I doing? This doesn’t have to be this way,’” says James. He decided to start using third-party warehouses and try a print-on-demand model, which integrates with the brand’s Shopify store.
Now, the company sells its coffee-themed posters, specialty ceramics, and clothing in editions of tens, hundreds, and thousands—mirroring the business’s name. This limited edition model turns James’s products into sought-after collectibles, which strengthens their brand reputation.
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Selling coffee online FAQ
Can you make money selling coffee online?
Yes, there are a number of ways to make money selling coffee online. For example, you could use a coffee dropshipping supplier to sell raw coffee beans, or you could sell your own homemade bottled coffee drinks.
Can selling coffee online be profitable?
People around the world drink coffee, and most Americans drink coffee every single day. Due to this widespread popularity, your online coffee business may have no shortage of potential customers—but competition is high. To make selling coffee online profitable, you’ll need to differentiate your brand to stand out. You’ll also need to ensure your operation runs efficiently to make a profit.
How can I grow my online coffee business?
You can grow your online coffee business by expanding your product offerings, forging partnerships, and focusing on storytelling and education-based marketing efforts.
Can I run a coffee business from home?
You can run a coffee business from home if you dropship your products, since you won’t need to roast beans and store your products yourself. If you plan on roasting your own beans or creating your own coffee products, you can still work from home, but you’ll need space to make and store those products.