The Essentials of a Coffee Dropshipping Business

[Foxwordsmith7]

Hello everybody,

I recently stumbled upon this message board while searching for tips on running a coffee dropshipping business, and I believe this is a good place for me to ask some questions.

My situation: I am looking to start my own coffee dropshipping business very soon. I have been watching all sorts of dropshipping videos on YouTube and reading all sorts of step-by-step guides online. Before I officially start my business I'd like to make sure that I have everything lined up. I need to know the essentials (business structure, operations, labels, etc.) of running a coffee dropshipping business. When just starting out, in your opinions, what are the dos and don'ts? What do you do early on? What don't you do?

 

[Foxwordsmith7]

Amazon.com has been one option I'm looking into. Then again I already run my own custom website (about my personal interests) on Wix and that platform has its own built in online store in Ecwid. Ecwid allows you to sell items on your Wix website by placing a store page on your website. Any tips on what a beginner should be doing with an online coffee drop shipment business would be appreciated!

 

[Foxwordsmith7]

Thanks for your replies, Alex. My name is Steven. Here are some answers to your questions:

1) I am going to buy the beans from others. I am going to be the middle man between customers who want the products and the company that roasts the beans. I'm primarily selling the products online.

2) I haven't started my coffee website, but I am going to do that soon. For my marketing strategy I already have made a logo that I feel will be appealing to customers. I have a good themed logo.

3) I'd like to distribute internationally. Perhaps not every single place in the world, but I don't want to limit myself to just America.

4) I have found one coffee company that has its own drop shipping program in place. I am looking to enter this program so I can sell their products. This coffee company has unique coffee blends that I believe are going to sell.

*I'm not too thrilled about Amazon.com as a whole anyway. I mentioned Ecwid before because I feel comfortable using Ecwid as an online store platform. Ecwid online stores are available for you to paste them onto your custom Wix website.

I would love to get in contact with some of your coffee friends and extend my coffee conversations with you. Perhaps down the road some of your friends would like to do business with me once I establish my drop shipping business?

 

[Foxwordsmith7]

I don't know the core details about the coffee business. I'm not an expert. I'm just starting out. How to roast, how to cup, pricing differences... I just don't know.

I agree. Coffee's about quality and pricing.

Start small and just selling inside the United States is fine. Not a problem.

The drop shipment company I'm looking at isn't requiring a hefty payment on my end. It's one of the more lenient payment plans I've seen.

I'm older than 25 years old.

 

[CoffeeDude1]

Since you are going to be the middle man in the operation it is good to find coffee roasters that fresh roast coffee daily and except drop ship orders. Most drop ship coffee roasters will have a cart system that will give you a backend to place orders. It is preferable to have net 30 terms. Most roasters won't give you those terms right away, but most will once you have an established track record.

Some roasters do not have the back-end system and may require you to place orders via fax or email. Depending on how many roasters you're dealing with that can be a hassle, AND orders may be lost.

 

[Cappie]

Just wanted to jump in here an ask a question. What do you mean by "Backend orders" and "back-end system"?
Thanks

 

[Cappie]

I don't know the core details about the coffee business. I'm not an expert. I'm just starting out. How to roast, how to cup, pricing differences... I just don't know.

I agree. Coffee's about quality and pricing.

Start small and just selling inside the United States is fine. Not a problem.

The drop shipment company I'm looking at isn't requiring a hefty payment on my end. It's one of the more lenient payment plans I've seen.

I'm older than 25 years old.

I'm new and trying to learn the industry as well, so excuse my question, but I am not sure I am understanding your business model. I thought you were looking to be a drop shipment company, so why are you looking at a drop shipment company. Please help me understand your business model and what you are actually trying to do. Not being condescending, just honestly trying to learn more and understand.
Thanks.

 

[Cappie]

The thread is only a couple weeks old, so maybe he will return and update us on his progress.
-
I'm just beginning my journey of learning the coffee industry myself. The more I research and learn, the more I realize how little i know. It is way more complex than I had realized.

 

[abeautifultaste]

First of all, I would like to apologize for my previous posting about your thread. it wasn't "SUBSTANTIVE" as one of our long time members pointed it out. So, again, I apologize for that.

having said that, just now, Foxwordsmith7 pm me with below message. So, i guess that he was bit disappointed at my previous reply and also disappointed at "no replies" from other members. So, I advised him that I will reply via this posting, so that my reply can be SUBSTANTIVE and might be able to help someone in similar situation.


First, let me ask you, Foxwordsmith7 (BTW what is your name?) few questions in order for me to be more constructive and informative replying your question.

1. how are you getting the beans? I mean.. are you roasting the beans by yourself? or do you buy from others? or do you have someone else roast & package for you, so you can just store them and sell them on line?

2. have you started making your own website?
if so, what is your website marketing strategy? what will be the image of your coffee will be ? (image : as example, "deathwish coffee" comes to mind immediately)

3. do you want to distribute locally first? or entire USA? and world? and universe? (just kidding :+)

4. have you thought about what makes your coffee different? better? unique? than others? because there are gazillion of on line / drop shipping coffee companies. How your coffee will stand above them? this is one of the most important point.
BTW, forget amazon.com sales. they will suck you dry in profits!!

So, please give me your honest (yes, really honest) reply on my above questions.
then, I will post my next answers.

PS: BTW, I am not an expert on this. But I AM IN COFFEE ORIGIN BUSINESS and have a lot of coffee friends all over the world. I have couple of coffee farms, two retails shops and one roasting company and one green bean exporting company (All in Guatemala, not in USA), so, I kind of know bit about what I am talking about. anyway, I will try my very best to reply to you as much as I know. thanks.
Alex at Ensoluna S.A.

ensoluna, I love how you started off by asking these questions.

I wouldn't call myself an expert by any means, but I do have over 12 years of experience building websites, brands, social media accounts, and other online business stuff. With that being said, my recommendation is to get to know who you're trying to reach, which requires you to know at least the basics of the industry. My first step would be to writing a Customer Profile. If you know who you're trying to reach, you'll know where to go, who to talk to, what they like, and how you can help them solve their problems. This brings us back to ensoluna 4 questions How will I be different? Better? Unique? Than others? If you know who your people are you'll know how to be better unique and different compared to others.


Even though Fox7 probably won't be back, I thought maybe this might help someone else.

 

[Rustlen]

Back in the days when I opened my business, I didn't pay much attention to the bills. I was mostly concentrated on clients and marketing. Then, consequences appeared. So, hire a good company which will deal with your payments fast and on time.

 

[Ramiel]

It's great that you took such a decision back in the day and I'm pretty sure that you're running it well. What kind of payment gateways are you using and is it affordable enough for your margin of profit? I always struggled with my water consumption as my coffee shop in Lancaster needs literally tons of water every day and it can be stressful if you don't switch to a water provider with competitive pricing. I found a great chance and took it as there was one particular company that offered great prices for the amount of water I used and saved me a 30%.

I was just over spending for no reason with my last provider. Thanks for sharing.