Your ideal customer is browsing their phone for something special to share with friends at the weekend… They’re not up for heading to the shops—they just want to put their feet up and make the most of the choice and convenience of the internet.
As a business, selling alcohol online is your big chance to meet them where they are and showcase your products. BUT (and it’s a big but), it’s a very complex market. From laws and taxes to logistics, there are lots of hurdles to overcome—especially for smaller producers.
The good news? With the right approach, you’ll be able to handle legal hurdles, build a loyal customer base, and create a great business. At Tipple, we’ve been in your shoes, and we can help. Let’s take a look. This is part 1 in a series of ALL the things you need to do, to not only sell online, but be successful.
Selling alcohol online is a golden opportunity…but it’s not easy
Our industry has never been more exciting. Every week sees the launch of a fantastic new beer, spirit, or wine on the market, but the hard truth is that their survival depends on generating lots of sales.
However, generating lots of sales, requires brand awareness.
Brand awareness isn't cheap, the most cost effective way of generating brand awareness is by selling online.
Selling alcohol online successfully isn’t as simple as setting up an e-commerce website and hoping for the best. It's not even just about great marketing. There’s a lot to consider, and you need to get every detail right, or things could go wrong quickly.
There are two most common methods for selling online:
- Direct sales: Selling directly to consumers through your website gives you more control and better margins, but it takes much more marketing know-how. You need more than a great website for great sales figures. Not to mention that it requires a deep understanding of complex legalities, tax, and logistics – especially if you’re selling abroad.
- Third-party platforms: Partnering with established e-commerce giants like Amazon or online marketplaces like Master of Malt will expand your reach but may involve fees and give you less control, because you don't own the data or the relationship with the consumer.
Tipple: Your partner in online alcohol sales
At Tipple, we began by selling our own gin. We made mistakes, and through years of experience, we understand the complexities and hurdles of selling alcohol online.
That’s why we seized the opportunity to make a difference in our industry and created plug-in software that makes it easy for alcohol businesses of all sizes to sell alcohol online across the world.
You might not have a team to deal with red tape, but you don’t need them with Tipple. And if you’re part of a bigger organisation, we can make your business more efficient. That’s a win-win if you ask us.
What you need to know about alcohol distribution laws
You want to see great numbers on your balance sheet, of course. But to sell alcohol online successfully, you need to understand the rules.
So, what are they? First and foremost, different countries (and sometimes states) have their own regulations for selling alcohol online.
For example:
- In the U.S.: There is the three tier system. Shipping alcohol across state lines means you must adhere to federal and state-specific rules. Some states, like California, are more lenient, while others, like Utah, have strict restrictions.
- In the EU: Sellers must navigate complex country-specific registrations, customs procedures, excise rates, and Value Added Tax (VAT) regulations to comply with cross-border e-commerce rules.
- In Australia: The ‘Responsible Service of Alcohol’ (RSA) framework demands strict age verification and places limits on promotional offers. Plus, you must also have an alcohol licence in each separate territory.
These laws govern everything from who can buy alcohol to how it’s shipped.
You need to know what you’re doing, or else you’re in for a big headache and potentially big fines.
Do you need a licence to sell alcohol online?
The answer is yes; in most cases, you do. However, licensing requirements vary by country and region, so doing your homework is non-negotiable. Whether it’s a national alcohol distribution licence or a region-specific one, you need to make sure you’re always playing by the rules.
For instance:
- In the UK: The Licensing Act 2003 requires an alcohol licence, even for online sales. Sellers must appoint a ‘Designated Premises Supervisor’ who holds a Personal Licence.
- In Canada: Provinces differ widely; Ontario requires an Alcohol and Gaming Commission licence, while Quebec has separate mandates for alcohol shipping.
It’s tricky and time-consuming, but selling without the proper licence is risky and will inevitably lead to hefty fines or, worse, legal shutdowns.
A licence is your permit to sell. Making sure you have the right ones in place shows that you’re committed to running a responsible and compliant business.
Steps to take before you can sell alcohol online legally
If you’ve never sold alcohol online before, here’s how to get started.
Step 1: Research your local laws
Start with the basics—make sure you know what you’re up against. As we’ve mentioned, every country has its own regulations for selling alcohol online.
- Resources: Government websites or trade organisations will provide detailed guidance for your local area.
- Legal advice: Consider consulting a lawyer who specialises in alcohol sales. It’s an investment that may well stop problems down the line.
Taking the time to fully understand local laws will make sure that your business can trade confidently and save you headaches later.
Step 2: Acquire necessary licences
Once you understand the laws, it’s time to get licensed.
Here’s what you’ll need:
- Retail licences: For selling directly to consumers.
- Wholesale licences: If you’re supplying other businesses.
Every licence comes with its own requirements, so always make sure you read the fine print.
Now, you’re ready to sell alcohol online!
Creative ways to sell alcohol online
Here’s a top tip. Selling alcohol online doesn’t have to be limited to traditional methods. There are an increasing number of ways to reach customers and grow your business, such as:
Partnering with licensed retailers
If you’re a small company and navigating licences feels daunting, partnering with an international retailer can be tempting. They can handle your compliance and logistics locally and leave you to focus on your product.
Benefits include:
- Market reach: They can get your product into places you’d never be able to reach alone.
- Regulatory relief: They already know the rules and how to follow them.
But here’s the catch:
- No control of your data: Retailers don’t share their data with you. Without this data, you don’t know what’s working (and what’s not), meaning you’re less likely to leave the platform as it’s too difficult to replicate the results yourself.
Exploring alternative retail models
You could also think outside the (wine) box with these creative approaches:
- Alcohol-infused products: Chocolates, baked goods, or even candles that feature your signature drinks.
- Subscription services: Offer monthly deliveries of craft beers, fine wines, or cocktail kits.
- Virtual tastings: Sell an experience, not just a product. Hosting events allows customers to sample your drinks and learn about your brand.
Overcoming challenges when selling alcohol online
Even if you’ve nailed all the previous steps, there are still common hurdles when it comes to selling alcohol online. You need to make it your business to take care of:
Managing consumer expectations
These days, online consumers demand complete transparency and expect reliability.
Always be clear about the following:
- Product details: Their origin, ingredients, and alcohol content.
- Delivery timelines: Set realistic expectations to build customer loyalty and trust.
- Tasting notes: We all know liquid to lips is the ultimate way to gain customers but if they can't taste it through a screen, you'll have to describe it in a way that gets curiosity going.
Understanding shipping regulations
Shipping alcohol isn’t as straightforward as shipping other goods.
Here are some examples:
- In the U.S.: Only certain states allow direct-to-consumer alcohol shipping, and carriers like UPS and FedEx have specific protocols.
- In Australia: Age verification is mandatory at the point of delivery, adding an extra step to the process.
- In the EU: Cross-border shipping requires compliance with strict customs regulations, VAT rules, and country-specific alcohol import/export taxes.
Partnering with an experienced courier could help you navigate these rules, but in truth, many couriers won’t ship alcohol across borders due to the tax that’s required at their destination.
Why choose Tipple
So, how could Tipple help you navigate these challenges and take advantage of the opportunity to ship alcohol abroad?
Your Tipple account manager and brand dashboard will assist by:
- Customisable solutions: We will tailor strategies to your needs, whether you’re a boutique brand or a major player.
- Making compliance simple: Our software handles the nitty-gritty of taxes and regulations, so you don’t have to.
- Joining up operations: Our software integrates with your existing e-commerce to streamline logistics and customer management.
- Helping you scale: From small startups to large enterprises, Tipple will grow with you.
In our opinion, we’re not just helping you sell alcohol (although, let’s face it, that’s the primary goal)—we’re helping you build a sustainable, global brand that stands out.
Ready to sell your alcohol online?
Growing your company and selling your products across the world is exciting, but it requires extremely careful planning and execution. There's a lot to consider, from understanding complex laws to making sure you develop successful sales strategies.
The good news is that Tipple makes the whole process much easier and less stressful. Book a free 30-minute consultation today to discuss how we can help you sell successfully online and grow your brand!
