Online Alcohol Sales: Get Qualified And Start Selling!

The online alcohol sales sector is booming, with online alcohol sales in the US reaching $8 billion in 2018 and expected to reach $18.53 billion by 2027. However, selling alcohol online involves complying with complex and varying legal requirements, including state and federal laws, and ensuring safe delivery. To sell alcohol online, you will generally need a licence or other authorisation from a licensing authority, which is usually a local council. In the US, you must obtain a licence from the TTB website before you can sell alcohol online. To obtain a licence, you must be aged 18 years or over and hold a relevant licensing qualification to ensure that licence holders are aware of licensing laws and the wider social responsibilities involved in the sale of alcohol. You will also need to ensure strict compliance with age verification rules and develop robust marketing and sales skills.

Understand the legal requirements and necessary licences

The legal requirements and necessary licences for selling alcohol online vary depending on your location. In the US, for example, you must obtain a licence from the TTB website before you can sell alcohol online. Additionally, each state has its own laws regarding the shipment of alcohol, with some allowing all types of alcohol to be shipped direct to consumers, while others allow no alcohol or only select categories (e.g. wine, beer, or cider). Some states, such as Utah, strictly prohibit the direct shipment of alcoholic beverages altogether. Therefore, it is important to carefully review the rules for the states that pertain to your business.

If your eCommerce alcohol business is coupled with a physical location where customers can drink, you will likely need a premises licence. However, if you sell alcohol strictly through the Internet, you may not need a premises licence, depending on your state's laws. In any case, you will need to complete the relevant paperwork to track sales and protect your business against litigation.

In England and Wales, any business or organisation that sells or supplies alcohol on a permanent basis must have a licence or other authorisation from a licensing authority, usually the local council. This includes a requirement for a designated premises supervisor, who must have a personal licence and be nominated by the premises licence holder. The supervisor must take responsibility for the sale and supply of alcohol and understand the social issues and potential problems associated with it.

To obtain a personal licence, you must be aged 18 or over and hold a relevant licensing qualification, such as the BIIAB Level 2 Award for Personal Licence Holders. This qualification ensures that licence holders are aware of licensing laws and the wider social responsibilities involved in the sale of alcohol.

Develop marketing and sales strategies

Marketing and sales strategies are crucial to the success of your online alcohol business. Here are some detailed steps to help you develop an effective plan:

Understand the Market and Trends

Firstly, conduct thorough market research to understand the latest trends and consumer preferences. Identify your target audience and their specific needs and preferences. Research your competitors to differentiate your offering and identify unique selling points.

Regulatory Compliance

Ensure strict compliance with age verification rules. Understand the legal requirements and regulations of your state, county, and federal laws. Obtain all the necessary licenses and permits, including a manufacturer's license, importer's basic permit, and any state-specific licenses.

Digital Marketing

Build an online presence by creating a visually appealing and user-friendly website. Showcase your products with high-quality images, detailed descriptions, and promotional videos to keep visitors engaged. Connect your online store with social media platforms to drive traffic and build an audience. Leverage platforms like Wix, Square Online, and Shopify to enhance your brand's reputation and reach a wider audience.

Pricing and Promotions

Offer attractive pricing and special deals, such as discounts, promotions, and loyalty programs, to attract and retain customers. Conduct market research to set competitive prices. Free shipping is often a strong incentive for customers.

Customer Service

Provide outstanding customer service by being responsive to inquiries and feedback through multiple channels, including email, live chat, and phone. Address any concerns promptly and professionally to ensure a positive shopping experience, encouraging repeat purchases and word-of-mouth referrals.

Accessories and Bundles

Enhance the drinking experience by offering high-quality accessories and glassware, and create gift sets. Create bundles that pair specific types of alcohol with stylish and functional accessories, especially during holidays and special occasions.

Safe and Responsible Drinking

Promote safe and responsible drinking by encouraging customers to drink in moderation. Include content on your website about drinking responsibly and provide links to expert resources. Ensure you have safeguarding policies in place, and exercise your right to refuse a sale to anyone who may be abusing alcohol or is underage.

By implementing these strategies, you can effectively market and sell alcohol online while adhering to legal and ethical responsibilities.

Ensure compliance with age verification rules

To ensure compliance with age verification rules, it is essential to implement robust age verification tools and protocols. Here are some key steps to ensure compliance:

Firstly, invest in reliable age verification software or tools that integrate with your eCommerce platform. This may include digital solutions such as selfie verification, ID scanning, or other digital age verification tools. These tools will help streamline the verification process and enhance the accuracy of age verification.

Secondly, train your customer service staff on proper age verification procedures. They should be well-versed in checking IDs and identifying legitimate forms of identification. Ensure they are aware of the legal drinking age in your jurisdiction and any applicable regulations.

Additionally, establish clear policies and procedures for age verification. Develop a standard operating procedure (SOP) that outlines the steps to verify a customer's age, including what to do if a customer appears underage or provides suspicious identification.

It is also important to stay updated on regulatory changes and local laws. Age verification requirements may vary across different states or regions, so ensure you are compliant with the specific rules in your area. Regularly review and adjust your procedures as necessary to maintain compliance.

Finally, consider implementing additional security measures to bolster age verification. This could include secure delivery methods, such as requiring an adult signature upon delivery or using delivery services that specialize in age-restricted products.

By following these steps, you can help ensure compliance with age verification rules and protect your business from the legal and financial consequences of selling alcohol to minors.

Choose the right sales platform

Choosing the right sales platform is a crucial step in selling alcohol online. There are several platforms to choose from, each with its own advantages and drawbacks. Here are some key considerations to help you make an informed decision:

Regulatory Compliance

Firstly, ensure that your chosen platform complies with the relevant laws and regulations in your state or country. Alcohol shipping laws vary by region, so it is essential to understand the specific requirements for the areas you plan to serve. Some platforms may be better suited than others for navigating these complex regulations. For example, Drizly, a popular alcohol delivery platform, connects customers with local liquor stores, but it is limited to specific regions and requires partnerships with those stores.

Age Verification

Strictly enforcing age restrictions is critical in the online alcohol sales sector. Choose a platform that offers robust age verification tools to ensure that only those of legal drinking age can purchase alcohol. This may include ID scanning, selfie verification, or other digital age verification methods.

Marketing and Customer Experience

Select a platform that provides you with control over branding and the ability to customise the customer experience. For example, platforms like Shopify and WooCommerce allow you to customise your online store and control every aspect of your business. On the other hand, if you use a platform like Drizly, you will be limited to their niche market of customers who are already using the platform to connect with local liquor stores.

Delivery Options

Consider whether the platform offers delivery services or if you will need to organise delivery separately. Some platforms, like Drizly, offer fast delivery to customers, while others may require you to partner with a third-party delivery service. Ensure that your chosen platform complies with your state's delivery laws for selling alcohol.

Licensing and Permits

Make sure that the platform allows you to obtain the necessary licenses and permits for selling alcohol online. This may include a manufacturer's license, importer's basic permit, or other relevant licenses and permits as required by your local laws.

Digital Presence and Promotion

Choose a platform that integrates well with social media and digital marketing strategies. For instance, Wix and Square Online offer a feature that enables social network users to jump directly to your online store with just one click. Additionally, consider using promotional videos on your website, as users tend to spend more time on sites that feature videos.

In summary, when choosing a sales platform for your online alcohol business, opt for one that complies with legal and regulatory requirements, prioritises age verification, offers customisation and control, integrates well with digital marketing strategies, and provides delivery options. By considering these factors, you can make an informed decision to set your business up for success.

Prepare for delivery and shipping

Preparing for the delivery and shipping of alcohol involves several key steps, from understanding the legal landscape to implementing age verification procedures. Here is a detailed guide on how to navigate this process:

Understand Shipping Regulations

Firstly, it is crucial to comprehend the intricate shipping regulations that govern the online alcohol industry. These regulations vary significantly from state to state. Some states permit the shipment of all types of alcohol, while others restrict it to specific categories, such as beer and wine. A few states, like Utah, strictly prohibit the direct shipment of any alcoholic beverages to consumers. Therefore, before initiating any shipping operations, familiarise yourself with the specific regulations applicable in your state and the states to which you intend to ship.

Obtain Necessary Licenses and Permits

To legally ship alcohol, ensure that you possess all the necessary licenses and permits. The specific requirements may differ based on your state, so consult the relevant authorities, such as your state's revenue or tax office. In the US, for instance, you must obtain a license from the TTB website before selling alcohol online. Additionally, consider hiring a lawyer or professional to guide you through the licensing process and ensure compliance with county, state, and federal laws.

Implement Age Verification

Age verification is a critical aspect of shipping alcohol. To protect your business and comply with legal requirements, implement robust age verification tools. This can include incorporating selfie verification and ID scanning into your e-commerce platform to ensure that your customers are of legal drinking age. Train your customer service staff to verify the age of customers and refuse sales to anyone underage.

Choose a Shipping Partner

Select a reliable shipping partner that can navigate the complexities of shipping alcohol. Research different carriers, as some may have specific services or expertise in shipping alcoholic beverages. Ensure they are aware of the legal requirements and can provide the necessary documentation during transit.

Prepare for Safe and Secure Packaging

To ensure the safe delivery of your products, invest in suitable packaging materials that protect the bottles and prevent breakage during transit. Consider using specialised shipping boxes designed for wine or liquor bottles, which often feature inserts that secure the bottles in place and protect them from impact. Additionally, explore temperature-controlled packaging options if your shipments need to maintain specific temperatures to preserve the quality of the alcohol.

Communicate Shipping Details to Customers

Keep your customers informed about the shipping process and expected delivery timelines. Provide clear information on your website regarding shipping fees, estimated delivery dates, and any special instructions for receiving the shipment. This transparency will enhance customer satisfaction and reduce inquiries regarding delivery status.

Frequently asked questions