An Online Liquor Store: Requirements and Best Practices

Starting An Online Liquor Store: Requirements and Best Practices

Posted 2 years ago by Max Komonov

Can you sell alcohol online? This is听a听question that many aspiring entrepreneurs have asked in听recent years. As听more and听more people shop online (), businesses are seeking new ways to听adapt. Online food retail has already been a听trend for听several years. But the听online liquor market is听not quite as听large. That means there is听opportunity out there for听business owners.

To听answer the听initial question: yes, it听is听legal to听sell alcohol online. There are certain legal requirements that vendors must meet, of听course. But, beyond that, the听process of听starting an听online liquor store is听not too complicated. If听you are interested, here鈥檚 everything you need to听know about how to听start an听online liquor business.

What Are the听Legal Requirements for听Starting an听Online Liquor Store?

Any business that intends to听sell alcohol must acquire a听liquor license. Liquor licenses in听the听U.S. are issued by听individual states, and听each state has its own legal requirements. You can find a听basic overview of听the听state-by-state requirements .

Regardless of听what state you are in, a听few things remain consistent when applying for听a听liquor license. First and听foremost is听the听distinction between an听on-license 补苍诲听补苍听off-license.

础苍听on-license is听assigned to听a听business that sells alcohol to听be听consumed on听the听premises. And an听off-license is听assigned to听a听business that sells alcohol to听be听consumed elsewhere. As听an听online liquor store owner, you would be听required to听get an听off-license.

What Documents Are Required to听Apply for听a听State Liquor License?

While state laws may vary, some requirements are fairly standard when applying for听a听liquor license. Some of听the听documents and听information you should prepare include:

Business license or听certificate of听incorporation
Health license
Sales tax permit
Inventory/menu proposal

Again, the听requirements may vary from state to听state. But it听never hurts to听provide as听much useful information as听possible when applying for听a听license. At听the听very least, you should have your business license before attempting to听apply for听a听liquor license.

Choosing What To听Sell At听Your Online Liquor Store

As听with any听retail business, narrowing down what to听sell will be听very important to听your business plan. Offering a听wide selection of听alcoholic beverages is听not a听problem. But, particularly early on, budgets can be听tight. It听is听often easier to听start with a听more limited inventory before attempting to听branch out. But, to听stand out, many online vendors will choose to听specialize in听a听certain niche. As听an听online liquor store, your business could choose to听focus on听carrying a听wide selection of听a听certain drink type.

Beer

Beer is听the听most widely-consumed alcoholic drink type in听America, with men the听beverage. The rise in听craft beer brewing has reinvigorated the听market in听recent years, creating more variety and听competition among products.

The advantages of听selling beer are that it鈥檚 relatively inexpensive and听always in听high demand. However, there is听a听tradeoff for听both of听those factors. It听can be听harder to听stand out from the听competition when beer is听your primary focus. Additionally, beer has a听lower price point than other drinks.

Wine

Wine is听also in听high demand, though not consumed quite as听much as听beer. Prices for听wine tend to听vary based on听product quality. But, in听general, wine has a听higher price point than beer, so听it听can lead to听higher profits. There is听also less competition in听the听online wine market, which can help your business a听lot when starting out.

Spirits

Spirits, like whiskey, vodka, and听gin, are the听third primary category of听alcoholic drinks. This category is听more broad than the听other two, meaning there is听greater variety. Many spirits, particularly whiskey or听bourbon, are in听relatively high demand and听can be听sold at听a听high price point. Specializing in听carrying a听wide range of听spirits can be听a听good way to听stand out from the听competition while also making good profits.

However, the听tradeoff when selling spirits is听that the听market may not be听quite as听robust as听beer or听wine. Additionally, it听can be听more expensive to听keep your inventory stocked with fine spirits than other drink types.

How to听Start an听Online Liquor Store: Setting Up听the听Business

Once you have your liquor license and听know what to听sell, it鈥檚 time to听get your business set up. While there are several steps involved in听this process, including writing a听business plan, we听will focus on听two key elements. Those are choosing your supplier(s), and听creating a听website.

Choosing Supplier(s)

Most online retailers can choose between two business models when it听comes to听supplying their inventory: dropshipping, and听wholesale.

Dropshipping is听an听arrangement in听which the听retailer (you) facilitates purchases between the听manufacturer and听the听end consumer. You do听not need to听worry about keeping your inventory stocked or听fulfilling orders with dropshipping. Instead, you simply list items on听your website and听pay a听small fee to听the听manufacturer when a听customer buys from you.

When using a听wholesaler, the听retailer buys their inventory in听bulk from a听manufacturer or听distributor. In听this arrangement, you are usually responsible for听item storage and听shipment. This gives you greater control over your inventory and听customer service. However, there is听a听greater upfront cost.

Creating a听Website

For many new business owners, the听prospect of听building their online store may seem like the听most daunting task. But entrepreneurs can easily sign up听for听and听use ecommerce platform store builders to听simplify this process significantly. Using ecommerce platform, for听instance, business owners can quickly and听easily customize their website, or听add an听online store to听an听existing website.

Using an听ecommerce website builder provides access to听all of听the听tools necessary to听build an听excellent online store. For example, features like product displays, easy checkout, and听multiple payment options can all be听added to听your website with ease.

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About The Author

Max has been working in the ecommerce industry for the last six years helping brands to establish and level-up content marketing and SEO. Despite that, he has experience with entrepreneurship. He is a fiction writer in his free time.

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