Not sure how to start an online liquor store? You’re not alone. The world of online liquor sales is complex due to the various local laws, e-commerce options, age verification methods, and more.
But don’t let that stop you. Selling online is a lucrative way to expand your liquor business and offer a tailored customer experience.
In this article, we’ll give you an overview of the legality of selling alcohol online, the licenses you may need, and some surefire steps to get started.
Is It Legal To Sell Alcohol Online?
Yes, it is legal to sell alcohol online. But like most liquor laws in the U.S., online laws and regulations vary pretty wildly from state to state. Some states allow online sales of all types of spirits, some beer and wine only, many wine only, and a few don’t allow any at all.
If your head isn’t spinning already, the restrictions on online sales can depend on whether the sale is in or out of state, if it’s a local delivery, coming directly from a producer (like a winery), or how much an individual purchases — the list goes on.
In other words, before starting an online liquor store, do your research and make sure it’s worth the investment.
What States Don’t Allow Online Liquor Sales?
As of writing, there are currently 6 states that do not allow alcohol delivery at all. Those states are:
- Alabama
- Utah
- Mississippi
- Kentucky
- Delaware
- Road Island
However, even if you’re in one of these states it doesn’t mean you can’t start an online store. In some cases, local delivery and pickup are still allowed for online sales.
What Licenses Do I Need To Start an Online Liquor Store?
To sell alcohol online, you’ll need various licenses. Start by going to the Alcohol and Tobacco Tax and Trade Bureau (TTB) website to find resources for your specific state and local requirements. You’ll also want to check if your state is an alcohol control state since they have more direct control over liquor sales.
For most online alcohol sales you’ll need:
- A shipping license to sell online
- An Employer Identification Number (EIN)
- An e-commerce business license
Approval for these licenses can take some time, so we recommend starting with the steps below until your approvals are complete (or near complete).
If you are using an e-commerce solution connected to your point of sale (POS) system, they may handle some of the payment processing and e-commerce requirements for you. Make sure you check with your technology provider before offering online sales.
Related Read: How to Get a Liquor License
7 Steps for Starting an Online Liquor Store
With all the licenses and legal requirements out of the way, you’ll be ready to get to the good part: actually starting your online store. Here are some practical and creative steps to boost your revenue with a great liquor store website.
1. Define Your Areas of Expertise and Think Local
How do you stand out online against liquor-selling behemoths like Uber Eats (formerly Drizly)? In all honesty, your local liquor store isn’t going to compete with huge competitors — and that’s OK.
People enjoy going to a local package store because of the curated experience and for expert recommendations — and that’s what you should strive to offer online. In other words, you shouldn’t throw out what makes you great when you move online.
Before starting a website, think through your strengths. Ask yourself questions like:
- What areas are we experts in? What’s our niche?
- What kind of curated displays do we have? How can we replicate them online?
- How can we tailor the customer experience for online visitors?
In short, make sure you brainstorm ways to add personality to your e-commerce site before you start building it.
2. Build a Website
People won’t just order beer, wine, or liquor online because it’s there. They’ll expect an easy-to-use website with a modern user experience. So make sure you build a website that looks and feels great.
When you’re building a website you have a couple of options:
- Build a website yourself using an e-commerce builder like Shopify or Square Online.
- Leverage your POS and inventory management provider to build and maintain a website.
Each has its benefits and drawbacks. If you’re more tech-savvy, building your own website gives you the most flexibility to customize the look and feel. That said, make sure you enable any age verification add-ons or specific shipment requirements to stay in legal compliance.
On the other hand, combining your in-store and online inventory on a pre-built website ensures your stock is accurate, and any alcohol-specific SKUs and legal compliance are built into the system. It also takes away the burden of maintaining the website.
3. Integrate Your Online and In-Store Inventory
Nothing will turn a customer off faster than making an order for their favorite bottle just to find out it’s out of stock.
No matter what option you use to build your website, make sure it’s connected with your inventory management system so your website gives customers an accurate picture of what’s in stock. Syncing your inventory also lets you set automated low stock alerts when items are low and see how certain products perform.
Finally, you may be surprised to find that certain items are more popular online than in-store, so you’ll need to adjust your stock levels accordingly.
4. Stay in Compliance with Age Verification
It’s a lot easier for anyone to browse an online liquor store than it is in person. Unfortunately, the anonymity of the internet also increases the risk of selling to underage customers.
Having a robust age verification system on your website is a must. Without a solid way to check a customer’s age, some customers under the legal age might see if they can get lucky. At a bare minimum, your website should have a popup that confirms the user’s age.
If you are shipping products directly to customers, require an adult signature for delivery to lower your legal risk.
5. Determine How You’ll Deliver Products
A not-so-fun fact: beer, wine, and liquor are on the list of restricted items that the United States Postal Service will not ship. So if you plan to start an online liquor store, you need to use a delivery service that can send your products.
If you are building your own website, you will need to register with FedEx or UPS as a licensed alcohol shipper. Liquor store e-commerce solutions will likely include appropriate shipping and pickup options.
Because laws on shipping alcohol vary by state, you’ll also need to make sure users can only purchase legally available products. Using a website that is specifically built for liquor can restrict what items are available for delivery based on their zip code.
Don’t want to handle direct shipments? No problem. You can also use your online store to arrange in-store pickups. This is a convenient option for customers who know exactly what they want, and still a great reason to offer online sales.
6. Market Your Website
So, you’ve launched your website, you’ve got rock-solid age verification, and a shipping company lined up. That’s all great — but no one will order from your website if they don’t know it exists.
Marketing your liquor store’s website is essential for spreading awareness and driving online sales — and you don’t have to be a marketing guru to come up with an effective strategy. Here are a few easy tips for online liquor store marketing:
- Use social media
Using social media platforms like Instagram and Facebook is a great way to drive people to your online liquor business. Curate your posts to show off your expertise and highlight any promotions. Just make sure to follow the rules for alcohol advertising.
- Set up a newsletter
Setting up a newsletter with direct links to new arrivals and specials is an effective method for getting people to return to your site. You can also offer exclusive online discounts for people who sign up.
- Send personalized offers
With a modern POS system, you can use your customers’ purchase history to send out personalized offers for their favorite items. Compared to a blanket offer, updating customers on relevant products is much more likely to lead to a sale.
- Create a customer loyalty program
If your state allows it, modern alcohol e-commerce solutions offer loyalty programs where repeat customers can earn points to use on future purchases. Once signed up, customers are more likely to come back to your website when they’re looking for liquor.
No matter the method(s) you use, make sure you’re consistent. Regular customer engagement will pay off in the long run.
Related Read: Alcohol Marketing Strategies: 5 Expert Tips To Help You Sell More
7. Use Data To Adjust Your Strategy
Customer preferences change fast. And some of your choices won’t pan out like you planned. By leveraging the data from your website, you can anticipate customer demand and react to market changes more quickly.
With custom reports and analytics, you can get quantifiable answers on what promotions are working, what products are popular, and trends in customer behavior. You can then use these insights to make more effective marketing and inventory decisions.
Use the reporting tools built into your website or POS system to:
- Understand customer sales history
- Get a breakdown of top-selling items
- See seasonal selling trends
- Look at sales and profit margins
All of these combined will help you move stock more efficiently and get more return on investment (ROI) from your marketing.
How To Start an Online Liquor Store With a Top-Rated POS System
Now that you know how to start an online liquor store, what are you waiting for? With online sales, you can transform the way you reach new and old customers alike.
In summary, these are the most important steps to follow on your journey to online success:
- Make sure you’ve got the right licenses
- Define your target customer
- Build an easy-to-use website
- Ensure your inventory is accurate
- Make sure your age verification solution is legally compliant
- Understand how to ship alcohol
- Consistently market your website
- Monitor sales data and make changes as needed
If you’re looking for a simple way to bring your online liquor shop to life, look no further than Bottle POS. Bottle POS was built by a liquor store owner for liquor store owners with easy-to-use e-commerce functionality.
With a POS system built for liquor stores, you’ll have everything needed for your online liquor store to thrive. Learn more by scheduling a free demo today.
