- What you need to know about selling food online.
- The benefits of selling food online
- Tips for success when selling food online
Are you an enthusiastic home cook who has always dreamed of opening a restaurant? Or maybe you’re the family caterer who wants to take your business online?
But more likely, you are the restaurant owner who is feeling the pressure of the digital age, and you know that you need to take your business online to stay relevant and reach a wider audience.
Whatever your story is, we’ve got the ultimate guide for you if you want to sell food online!
The internet has changed the restaurant industry in so many ways. It has changed the way we find new restaurants, but it has also changed the way customers order food and how restaurants market themselves.
And one of the most significant changes that the internet has brought to the food industry is the ability for anyone to sell food online.
That’s right! You no longer need a brick-and-mortar store to sell your delicious dishes. You can now reach customers worldwide with just a few clicks of a button.
According to the Food Marketing Institute, “80% of consumers say they would purchase food online if given the opportunity.”
And with the global food and beverage market expected to reach more than $8 billion by 2025, there has never been a better time to start selling food online!
If you’re ready to take your food business online, keep reading for our ultimate guide on selling food online!
What you need to know about selling food online.
BE AWARE OF THE LAW
The first thing you need to know about selling food online is some regulations and laws that you need to be aware of. These laws vary from country to country, so you will need to research to make sure you are compliant in the country or countries you want to sell your food products.
In the United States, the FDA (Food and Drug Administration) has a set of regulations called the Food Safety Modernization Act (FSMA) that all food businesses need to follow. These regulations cover everything from food storage and handling to transportation and labeling.
In the European Union, there is a similar set of regulations called the Food Information for Consumers Regulation (FIR) that all food businesses need to comply with. These regulations cover everything from food labeling and nutrition information to food allergens and food safety.
CHOOSE THE FOOD INDUSTRY SEGMENT
Once you have familiarized yourself with the laws and regulations surrounding food production and sales, you will need to decide what kind of food business you want to create. There are three main types of food businesses:
- Food Manufacturer
- Food Retailer
- Food Service
A food manufacturer is a business that produces food products that are sold to other companies, such as supermarkets, restaurants, and foodservice companies. Food manufacturers can either produce their own food products or make private label someone else’s products. Private labeling is when a food manufacturer produces food products for another company that puts its own brand label on the products.
A food retailer is a business that sells food products directly to consumers. There are two main types of food retailers: online and offline. Online food retailers sell their products through their website or a third-party marketplace. Offline food retailers sell their products through brick-and-mortar stores, such as supermarkets, convenience stores, and specialty food stores.
The three main types of food services are catering, delivery, and takeout/dine-in. Catering businesses provide food products and services for special events, such as weddings, birthday parties, and corporate events. Delivery businesses deliver food products to consumers’ homes or workplaces. Takeout and dine-in businesses provide food products that customers can take home with them or eat at the restaurant.
FIND THE RIGHT NICHE
The next step in starting your food business is to find the right niche. There are two main ways to find a niche for your food business:
- Sell a unique food product
- Sell a common food product in a unique way
If you want to sell a unique food product, you will need to ensure that your product is different from anything else on the market. This can be accomplished by either creating a new food product or improving upon an existing food product.
Some examples of unique food products include:
- A new type of cheese
- A gluten-free pasta sauce
- A dairy-free ice cream
- A sugar-free candy
- A low-carbohydrate bread
If you want to sell a standard food product uniquely, you will need to find a niche market underserved by the current food industry. This can be accomplished by either selling an existing food product in a new way or catering to a specific group of people with your food product.
Some examples of common food products that are sold in a unique way can include:
- An organic baby food
- A gourmet pet food
- A Kosher meal delivery service
- A Paleo-friendly catering service
- A vegan meal kit subscription service
PICK YOUR BUSINESS MODEL
Choosing a suitable business model is one of the most crucial actions you should take as soon as possible. There are three main types of business models for food businesses:
1. Direct-to-consumer (D2C)
2. Business-to-consumer (B2C)
3. Business-to-business (B2B)
If you want to sell your food products directly to consumers, you will need to choose a D2C business model. With a D2C business model, you will sell your food products through your own website or a third-party marketplace.
If you want to sell your food products to other businesses, you will need to choose a B2B or a B2C business model. With a B2B business model, you will sell your food products to other businesses, such as supermarkets, restaurants, and foodservice companies. With a B2C business model, you will sell your food products to consumers through brick-and-mortar stores, such as supermarkets, convenience stores, and specialty food stores.
FIND RIGHT SUPPLIERS
The supply chain for the food industry is very different from other industries. The food industry is a perishable goods industry, which means that the products have a limited shelf life.
There are two leading suppliers for food businesses: food manufacturers and food distributors. Food manufacturers produce food products like pasta sauces, snacks, and baked goods. Food distributors distribute food products from manufacturers to retailers.
When choosing a supplier, you will need to consider the following factors:
Quality: choose a supplier that produces high-quality food products.
Price: choose a supplier that offers competitive prices.
Location: choose a supplier near your target market.
Shipping: choose a supplier that provides reliable shipping.
Customer service: choose a supplier that offers excellent customer service.
PACKAGING AND LABELING
The next step in starting your food business is to choose the proper packaging and labeling for your food products. There are two main types of packaging for food products: primary packaging and secondary packaging. Primary packaging is the type of packaging that comes in direct contact with the food product. Secondary packaging is the type of packaging that holds multiple units of primary packaging.
Some examples of primary packaging for food products include:
Some examples of secondary packaging for food products include:
When choosing to package your food product, you will need to consider the following factors:
Function: that serves the intended function.
Cost: cost-effective packaging.
Sustainability: sustainable packaging.
Deliverability: how the packaging holds up during delivery
Recyclability: recyclable packaging.
Branding: packaging that reflects your brand.
CREATE A MARKETING PLAN
Creating a marketing plan for your food business is just a necessity. Your marketing plan should include the following elements:
Your target market: You will need to identify your target market.
Your Unique Selling Proposition (USP): You will need to create a USP for your food business.
Your marketing mix: You will need to determine your marketing mix, which includes the following:
Product: What type of food product are you selling?
Price: How much will you charge for your food product?
Place: Where are you going to sell your food product?
Promotion: How are you going to promote your food product?
Your marketing budget: You will need to determine your marketing budget.
Your sales goals: You will need to set sales goals for your food business.
The benefits of selling food online
There are many benefits of selling food online, such as:
You can reach a wider audience of potential customers.
That means that you can sell your food products to people worldwide, not just to people who live near your brick-and-mortar store.
You have more control over your pricing.
When you sell food online, you can set your prices for your food products. You don’t have to worry about the fees that brick-and-mortar stores charge, such as rent, utilities, and employees.
You can sell your food products 24/7.
While selling food online, your store is open 24 hours a day, 7 days a week. That means that people can buy your food products anytime, anywhere. This is an excellent advantage if you have a busy lifestyle or live in a different time zone than your customers.
You can offer promotions and discounts to customers.
Holidays are a great time to offer promotions and discounts to customers. You can also offer loyalty rewards like points and cashback; or coupons and discounts to people who sign up for your email list or follow you on social media.
You can use social media for marketing your food business.
Social media is a great way to reach a wider audience of potential customers. You can use social media to share photos and videos of your food products, post about special promotions, and answer customer questions.
You can scale your business more efficiently.
When you sell food online, it’s easier to scale your business. You can add new products and services more quickly and without a physical storefront. For example, if you start selling meal kits online, you can add new recipes and delivery options as you go.
Tips for success when selling food online
You can do a few things to increase your chances of success when selling food online. Consider these;
1. Create a strong branding strategy.
This means coming up with a unique name, logo, and tagline for your food business. It also means creating a professional-looking website for your online store (or maybe it’s a food or recipe blog) and social media accounts. For your food business, a branding strategy will help you stand out from the competition and attract more customers.
2. Build a responsive website.
Your website is the foundation of your online food business. Make sure it is designed responsively to look good on all devices (desktop, laptop, tablet, and smartphone).
3. Optimize your website for search engines.
It’s not enough to have a website. You need to make sure it is optimized for search engines, so potential customers can find it when searching for keywords related to your business.
4. Use social media to reach new customers.
Social media is a great way to reach new customers and promote your food business ideas. Make sure you are active on the major social media platforms (Facebook, Twitter, Instagram, and Pinterest) and that you are regularly sharing fresh and engaging content to make your customers want to try the food.
5. Use email marketing to stay in touch with customers.
A hungry customer is a good customer. Use email marketing to stay in touch with your customers and let them know about new products, promotions, and discounts. They will appreciate the personal touch and be more likely to buy from you again.
6. Use data to improve your business
Data is your friend. Use it to improve your food business. Track your sales, customers, and website traffic. Use this data to decide what products to sell online, what prices to charge, and how to market your business.
7. Automate some of the processes.
You can do many things to automate your food online business, such as setting up an automated email marketing campaign or using a point of sale system that integrates with your website. This will save you time and money to focus on other aspects of your business.
8. Focus on customer satisfaction.
Your customers are the most important part of your business. Make sure you provide them with a good experience, so they will come back to buy from you again. Focus on customer satisfaction and always try to exceed their expectations.
Resources for selling food online
Food Marketing Institute: The Food Marketing Institute is a trade association that provides resources and education for food businesses.
United States Department of Agriculture: The USDA provides information and resources for food businesses, including labeling requirements and safety standards.
Food and Drug Administration: The FDA regulates food businesses and provides information on food safety and labeling requirements.
Small Business Administration: The SBA provides resources and assistance for small businesses, including food businesses.
Local resources: Don’t forget to check with your local Chamber of Commerce or Small Business Development Center for help and assistance specific to your area.
If you’re looking for an online food ordering system for your restaurant, check out Orders.co. We provide a complete online ordering solution for restaurants, with everything you need to get started selling food online. We have a simple pricing structure with no hidden fees or long-term contracts.
So there you have it, the ultimate guide to selling food online. It’s not as hard as you might think, and with a little bit of effort, you could be on your way to starting a successful food business. Just remember to focus on the customer and keep them satisfied. Good luck!