Home > Articles > The Ultimate Guide On How To Sell Liquor Online | 7 Easy Steps

The Ultimate Guide On How To Sell Liquor Online | 7 Easy Steps

August 29, 2023
Written and researched by experts at AvadaLearn more about our methodology

By Sam Nguyen

CEO Avada Commerce

In this article, we show you how to sell liquor online, from the very first step, like getting a proper license, to promoting your store, and valuable tips from our experts.

Key Takeaways

  • Selling liquor online is achievable with seven steps and expert insights, including how to get a proper license, find a niche, source a supplier, create a brand, create an online store, sort out shipping, and promote your liquor store. 
  • Shopify is recommended as a reliable platform for your online liquor business because of its ease of use, robust ecommerce features, and scalability.

7 Steps To Sell Liquor Online

Selling liquor online is a lucrative and growing business in the US. The US wine and liquor e-commerce market generated $4.5 billion in net sales in 2021. However, selling liquor online is not as simple as setting up a website and shipping bottles to customers. You must follow specific steps and comply with various laws and regulations to run a successful online liquor store. Here are seven steps to help you get started.

Step 1: Get a Proper License To Sell

Getting a proper license to sell liquor online is a crucial step that varies depending on your state and the type of alcohol you want to sell. Here are some tips to help you get started:

  • Visit the TTB.gov website and check the state alcohol control boards for your state’s specific requirements and regulations.
  • Apply for your state’s winery, brewery, or distillery license if you produce your own alcohol.
  • Apply for a shipper’s license and make sure it allows you to sell online and ship to other states.
  • Apply for an importer’s basic permit if you want to import alcohol from overseas.
  • You may also need an e-commerce liquor license and carrier shipping agreements to sell liquor online legally.
Get a Proper License To Sell

Remember that license approval may take time. Complete these steps before diving into website development, branding, or supplier communications. Once licensed, the exciting phase of launching your business begins!

Keep in mind to research local alcohol shipping laws to ensure compliance. Some states like Alabama, Oklahoma, and Utah prohibit direct alcohol shipment to consumers.

Step 2: Find Your Niche

Finding your niche in selling liquor online can be a rewarding and profitable venture, but it also requires some planning and research. Here are some things you should know:

Selling liquor online can offer you several benefits compared to classic stores, such as reaching a broader customer base, increasing your sales, reducing your overhead costs, and creating a loyal following for your brand. According to Statista, the online sales of alcohol in the US are now worth US$6.1 billion, which has seen a rise of 131% since 2019.

Depending on your target market, budget, and preferences, you can opt for different types of liquor to sell online, such as wine, beer, spirits, or mixed drinks. You can also choose to specialize in a certain category, such as organic, craft, or premium liquor.

Find Your Niche

To find your niche in selling liquor online, you need to do some market research and identify the gaps and opportunities in the industry. You can use tools like Google Trends, Keyword Planner, and social media to see what people are searching for and talking about. 

You can also look at your competitors and see what they offer and how you can differentiate yourself. The online shop with the highest eCommerce net sales in the wine and liquor market in the US is totalwine.com, with a revenue of US$359 million in 2021. 

Finding your niche is better than directly competing with big brands that have existed for a long time in the market.

Step 3: Source A Supplier

Sourcing a liquor supplier to sell online in the US market can be a challenging but crucial step for your online liquor business. Here are some tips to help you find the best supplier for your needs:

You can source a liquor supplier from various channels, such as online directories, trade shows, industry associations, referrals, or social media. You can find a list of top liquor distributors in the USA on websites such as Beverage Trade Network.

To find a reliable supplier, you must research and do due diligence on their reputation, quality, price, delivery, and customer service. You can check their reviews, ratings, testimonials, certifications, and samples. You can also contact them directly and ask questions about their products, policies, and terms.

  • The best supplier for your online liquor business depends on your specific requirements, preferences, and budget. However, some general factors you should look for in a supplier are:
  • They have a wide range of products and brands that suit your niche and target market.
  • They offer competitive prices and discounts that allow you to make a profit margin.
  • They have fast and reliable delivery options that ensure your orders arrive on time and in good condition.
  • They have excellent customer service and support that responds to your queries and issues promptly and professionally.

Some of the top liquor distributors in the USA include Southern Glazer’s Wine & Spirits, Empire Merchants North LLC, Fedway Associates Inc., Henry Wine Group, and Youngs Market Company. These companies have a proven track record of success and are well-established in the industry.

Source A Supplier

Before you choose a liquor supplier to sell online in the US market, you need to make sure that they are licensed and authorized to sell alcohol in your state or country. You also need to verify their payment methods, return policies, and minimum order quantities. You should also compare different suppliers and negotiate the best deal for your business.

Step 4: Create Your Brand

Selling alcohol online is competitive because many others are doing it, too. To make your business stand out, you need to create a strong brand identity. 

Building a brand isn’t the same for everyone. It’s not just a logo. It’s about showing what your business believes in, and it’s special to your company. When you’re making your alcohol brand, remember these three important things:

Develop brand values. 

According to a survey by the Harvard Business Review, companies with strong brand values outperformed their peers by 400%. Start by defining the core values and mission of your brand. These values will guide all of your branding and marketing decisions and help you create a consistent and authentic brand identity. 

Design a killer logo.

Your logo is the visual representation of your brand, so it’s important to create a unique, memorable design that reflects your brand’s values. You can use online tools like BrandCrowd or Canva to create a professional-looking logo or work with a graphic designer to create a custom design.

Create Your Brand

Inspire trust

Building trust with your customers is essential for the success of your online liquor store. According to a report by Edelman, 81% of consumers said that trust in a brand is a deciding factor when making a purchase.

You can inspire trust by consistently delivering on your promises, providing excellent customer service, and being transparent about your business practices. It’s also important to have a secure website and payment system to ensure that customers feel safe when shopping with you. 

Remember to maintain color consistency throughout your brand elements, from website design to logo to product labels. Employ a primary color and a complementary secondary color for a cohesive visual identity. This consistency reinforces brand recognition and customer trust.

Step 5: Create An Online Store

Research for platforms

If you’re looking to create an online store to sell liquor in the US market, you’ll need to do some research on the best platforms to use. Shopify and Wix are two popular options, allowing you to build an online store using their ecommerce website builders.

Build an online store with an ecommerce website builder.

Ecommerce website builders are a fantastic choice for those new to technology. They provide easy-to-use design tools, appealing templates, and reliable customer support – all in one convenient place. With these builders, you pay a fixed monthly price, simplifying the process of calculating your website-building expenses.

When it comes to selling alcohol online, our top recommendations are Shopify and Wix. Each platform brings a robust set of features that will assist in turning your selling aspirations into a tangible online reality.

Both Shopify and Wix offer features that can help you sell liquor online, such as age verification tools and subscription features. They also offer a range of other benefits, such as customizable storefronts, payment processing, and shipping options.

Shopify

If you’re running a large online store and desire comprehensive insights into your data and product performance, Shopify is a standout choice. Here’s why we’re impressed:

Shopify

Shopify is purpose-built for ecommerce, making it a front-runner in terms of sales features, according to our research findings. Its inventory management capabilities are robust and perfectly suited for businesses with a substantial volume of products. 

You can create product collections, which is handy for organizing your alcohol offerings into different categories. Additionally, Shopify’s data features deeply understand your store’s performance.

Key Features:

  • Advanced Data Insights: Shopify’s analytics tools give you valuable insights into your store’s performance, helping you make informed decisions.
  • Inventory Management: It handles a large inventory effectively, making it an excellent choice for businesses with extensive product ranges.
  • Product Collections: Group your alcohol products into different collections for a more organized shopping experience.
  • Customer Recommendations: Shopify is a platform that many users are highly likely to recommend based on their experiences.
  • Affordable Starting Point: You can establish your online store on Shopify for as little as $39 per month.

Shopify is particularly suitable for:

  • Sellers with a substantial inventory of products, especially those with diverse alcohol offerings.
  • Those who want various ways to showcase products, such as through collections, to enhance the shopping journey.
  • Businesses that don’t require a blog as part of their store’s features.
  • Users who have some familiarity with website building or are willing to invest time in learning to navigate Shopify’s interface.

In essence, if you’re looking for a powerful ecommerce solution that provides detailed insights, robust inventory management, and the ability to create impactful collections, Shopify is tailor-made for your larger-scale liquor-selling venture.

Wix

Wix is a great choice for businesses with a smaller inventory. Here’s why we think it’s a top option:

Wix

Wix offers a diverse selection of templates tailored for selling food and drinks online, making it 

an excellent fit for your liquor-selling venture. It allows you to expand your reach by facilitating sales through platforms like Facebook and Instagram. What’s more, it’s easy to use and highly recommended by users, often ranking right after Shopify.

Key Features:

  • Delivery and Curbside Pick-Up: Wix enables you to provide convenient delivery options, bringing your products to customers’ doorsteps or allowing them to pick up curbside.
  • Subscriptions Support: If you’re considering starting a wine or beer club, Wix lets you set up subscription services, making it simple for customers to enjoy recurring deliveries.
  • Blogging Capability: Want to share more about your products or industry? Wix allows you to incorporate a blog into your online store.
  • Affordable Pricing: You can build and maintain your online store on Wix for as little as $27 per month.

Wix is ideal for:

  • Sellers with a smaller inventory who are looking for a cost-effective way to sell liquor online.
  • Those interested in incorporating a blog into their store to share insights, updates, and more.
  • Beginners who are new to building websites

If you’re starting with a compact inventory, wish to integrate social media for sales, and prefer an easy-to-use platform, Wix could be your perfect match.

Step 6: Sort Out Shipping

In the United States, you can use reputable shipping carriers like UPS and FedEx to ship various types of alcohol. Here’s how to kickstart your shipping process with these carriers:

  • Register an Account: Create an account with either UPS or FedEx.
  • Agreement Signing: Sign the appropriate shipping agreement, which could be the ‘FedEx Shipping Agreement’ or the ‘UPS Agreement for Approved Wine and Alcoholic Beverage Shippers.’
  • Design Your Shipping Labels: Generate your shipping labels using the carrier’s tools or a third-party label designer.
  • Packaging Requirements: Adhere to the packaging guidelines specified for the specific kind of alcoholic beverage you’re shipping.
  • Adult Signature Service: Opt for the adult signature service, as a responsible adult needs to sign for the delivery.
  • Attach Shipping Labels: Affix the shipping labels to your products.
  • Ship Away: It’s time to ship your products!
Sort Out Shipping

It’s important to note that, due to a law from 1909, USPS isn’t legally allowed to deliver alcohol!

Remember to carefully review the shipping regulations in your state and any states where you plan to sell. Some states outright forbid alcohol shipping, regardless of the delivery company. Fortunately, ecommerce platforms like Shopify allow you to exclude these states from shipping options, preventing accidental orders. You can also take advantage of Shopify Shipping discounts, which is up to 88%, saving your shipping cost and making more profit.

In addition to the usual shipping providers mentioned earlier, you can also provide options like curbside pickup and in-store pickup. In fact, an ecommerce platform – Square Online, has joined forces with DoorDash, enabling customers to receive their orders through DoorDash drivers swiftly.

Boost customer loyalty by offering free shipping – an enticing perk for online shoppers. As many as 79% of US consumers have expressed that the offer of free shipping would encourage them to shop online more often.

With your shipping strategy in place, you’re all set to ensure your customers receive their desired libations seamlessly and enjoyably.

Step 7: Promote Your Store

While you can now deliver your exceptional products worldwide, you must now spread the word and promote your website to start raking in substantial profits. 

Digital Marketing

Use digital marketing techniques such as pay-per-click advertising, content marketing, and influencer marketing to reach a wider audience and drive traffic to your online store. Shopify ecommerce provides many digital marketing and tracking tools. You can easily use it without much technical knowledge.

Email Marketing

To keep your brand at the forefront of consumers’ minds, assemble a mailing list for sending regular newsletters and exclusive discount codes. Emails are precious for digital marketers. To build your list, you can encourage users to share their email addresses in exchange for discounts, newsletters, or chances to enter competitions (especially if your alcohol delivery subscription involves such incentives).

Shopify provides its merchants with 10,000 free emails each month, allowing them to run effective email campaigns to promote their brand and attract customers without additional cost.

Social media

Both Shopify and Wix offer this feature, allowing users on social networks to seamlessly navigate to your online store with just a click.

Shopify is soon rolling out ‘Facebook Shops,’ a groundbreaking feature that creates a stunning Facebook store directly connected to your Shopify inventory. This offers customers an exquisite shopping experience while tapping into the vast user base of Facebook, with over 2.6 billion active users.

Social media

Use social media platforms such as Facebook, Instagram, and Twitter to connect with customers, share content, and promote your products. Consider running social media contests or giveaways to increase engagement and attract new followers.

SEO optimization

Optimize your website for search engines by using relevant keywords, meta tags, and other SEO techniques to improve your website’s visibility in search engine results pages. SEO tools are essential features that many ecommerce platforms provide. You should take advantage of it.

Beverage roadshows or expos

Participate in beverage roadshows or expos to showcase your products, network with industry professionals, and attract new customers. You can consider going to the Apple Zinfandel Experience, the International Bulk Wine and Spirits Show in San Francisco, or the Digital Food and Beverage event on ecommerce.

Remember, enhance user engagement by incorporating a promotional video on your website – websites with videos retain visitors 88% longer than those without.

Final Thought

So now you have learned how to sell liquor online with our seven simple steps guide. We know starting an online ecommerce business may not be easy. Always remember to prepare before launching your business. Good luck!

FAQs

The benefits of selling liquor online include reaching a wider audience, as you are not limited to selling to customers in your local area or even your country. You can sell your products to customers all over the world, which can lead to increased sales and revenue.
In addition, e-commerce offers a convenient shopping experience for customers. They can browse your products and make purchases from the comfort of their own homes at any time of day or night. This can lead to increased customer loyalty and repeat business.
While selling alcohol online offers many benefits, it also poses some unique challenges for the alcohol industry. One of the biggest challenges is compliance with regulations. The sale of alcohol is heavily regulated, and there are strict rules around age verification, shipping, and advertising.
Yes, Shopify is a good platform for selling liquor online. You can sell alcohol on Shopify as long as you have a liquor license and comply with all applicable laws and regulations.
Yes, you can sell alcohol online for free using platforms such as Square Online, which allows you to open a completely free online shop and sell alcohol online through its platform, as long as it’s permitted by the law in your area. 
Yes, there are restrictions on selling liquor across state or international borders. For example, you may need to comply with state and local laws about how the alcohol is packaged and labeled when transporting alcohol across state lines. When it comes to international borders, there are also regulations that need to be followed when marketing alcohol across national borders.
Some successful examples of online liquor stores include Drizly, Saucey, ReserveBar, Ritual, The Bottle Haus, and Sip Whiskey. These stores offer a wide selection of alcoholic beverages and have established themselves as popular destinations for customers looking to purchase liquor online.

Sam Nguyen is the CEO and founder of Avada Commerce, an e-commerce solution provider headquartered in Singapore. He is an expert on the Shopify e-commerce platform for online stores and retail point-of-sale systems. Sam loves talking about e-commerce and he aims to help over a million online businesses grow and thrive.