Entering the alcohol e-commerce world as a new brand can feel like jumping into a sea filled with established sharks. However, with the right strategies, even newcomers can carve out a significant presence. In this guide, we'll explore how to start out to stand out and thrive in the competitive alcohol e-commerce market.
1. Find Your Niche in the Market / Develop a Strong Brand Identity
In the vast pool of alcohol brands, finding your niche is crucial for standing out. Sustainability, organic ingredients, sipping or mixing preferences—these are just some aspects you can highlight to attract your target audience. Your brand's face sets the tone. If your brand leans towards cocktails, consider creating a signature cocktail and including a dedicated page on your website for cocktail recipes and photos, showcasing versatility and broadening your appeal.
Take Nosotros Tequila as an example: They not only focus on the quality of their product but also on the agave distinction used, which educates people on the differences within tequila and sets them apart. Their unique blend of highland and lowland agave offers a distinct earthy and herbal sweetness that sets their tequila apart. Whether it's sipping neat or crafting cocktails, Nosotros Tequila caters to both preferences, appealing to a wide range of consumers. (https://nosotrostequila.com)
Similarly, Greenbar Distillery stands out with its commitment to sustainability. Using certified organic ingredients, reducing packaging waste, and planting one tree per bottle sold, they prioritize environmental responsibility. Their carbon negative cocktails demonstrate their dedication to reducing carbon footprint, appealing to eco-conscious consumers. (https://greenbardistillery.com)
2. Provide an Exceptional Shopping Experience / Website
Creating an exceptional shopping experience is a must. Start by ensuring your website is user-friendly with easy navigation. High-resolution product images and detailed descriptions are crucial for helping customers make informed decisions. Take inspiration from Heaven’s Door, where product descriptions include notes on the nose, palate, and finish, helping buyers choose the right product for their preferences. (https://buy.heavensdoor.com/products/straight-bourbon)
Break up your shop site into sections for bundles, gifts, limited-time offers (LTOs), and special offerings. Make the checkout process simple and straightforward, providing information on shipping time, costs, and thresholds for complimentary shipping. Don't forget to include a pop-up for your email newsletter, so customers can easily stay informed about your brand.
3. Leverage Digital Marketing / Social Media
Building a strong presence on social media is essential for brand awareness. Start by creating social accounts and posting your brand story and product images. High-quality images are a must, including lifestyle shots that help customers envision your product in their lives. Whiskey in the Wild does this exceptionally well, showcasing outdoor adventures with their whiskey that comes with a flask attached. ( https://www.instagram.com/whiskeyinthewildco/)
Begin with small ad budgets, focusing on building brand awareness rather than immediate conversions. Use platforms like Facebook and Google to target your audience effectively. Consider running Meta page likes campaigns to build your brand's reputation and visibility. Additionally, start a branded campaign on Google to ensure your brand appears first when potential customers search for you.
4. Stay Compliant with Regulations
Alcohol e-commerce is subject to strict regulations, including age verification and shipping restrictions. Ensure your business complies with all legal requirements to maintain a positive reputation. Speakeasy Co.’s platform offers a three-tier compliant method of building a direct-to-consumer e-commerce store for suppliers that still work with distributors and retailers. (https://speakeasyco.com/pages/brand-partner)
For regulatory guidance, consult the Alcohol and Tobacco Tax and Trade Bureau (TTB), responsible for regulating alcohol trade and imports in the U.S. (https://www.ttb.gov/business-central/industry-members-responsibilities)
The Distilled Spirits Council of the United States (DISCUS) provides resources through its DISCUS Academy, offering training from industry leaders. Access DISCUS Academy at (https://www.distilledspirits.org) to stay updated on responsible practices and industry standards.
Advertising on social media platforms is a key way to reach consumers, but it must be done responsibly. The DISCUS Code provides guidelines for digital and social media advertising, and each platform has its own alcohol advertising policies. Learn more at (https://www.distilledspirits.org/social-media-demographics/).
5. Tracking, Tracking, Tracking
Tracking your brand's performance is essential for understanding your audience and optimizing your strategies. Utilizing UTM parameters allows you to track traffic sources, engagement, and conversions with precision. For instance, let's take a look at a full-fledged example of a UTM parameter:
https://shop.natterjack.com/?utm_source=meta&utm_medium=cpc&utm_campaign=acquisition&utm_term=audience_one&utm_content=blend1glass
In this example:
- utm_source=meta: This parameter identifies the traffic source, indicating that visitors came from "meta".
- utm_medium=cpc: This parameter denotes the marketing medium, in this case, "cpc" or cost per click.
- utm_campaign=acquisition: This parameter specifies the name of the marketing campaign, which is "acquisition".
- utm_term=audience_one: This parameter indicates the keyword or term associated with the ad, which is "audience_one".
- utm_content=blend1glass: This parameter specifies the content of the ad, in this case, "blend1glass".
By incorporating UTM parameters like these into your URLs, you can effectively track where your traffic is coming from and which campaigns are driving the most engagement and conversions.
It's important to use tools like Shopify Analytics and Google Analytics to track these parameters. Analyzing this data allows you to see where your traffic is originating and where potential customers drop off in the conversion funnel. With this information, you can optimize your strategies, retarget customers effectively, and make data-driven decisions to grow your brand.
Once you've mastered these basic steps, you can analyze where your brand needs the most attention and optimize accordingly. These key steps are critical for maintaining, growing, and becoming profitable in the alcohol e-commerce space. They also help you determine where to allocate your resources for maximum impact. With dedication and strategic planning, your brand can rise above the competition and become a big fish in the alcohol e-commerce world.
