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8 major advantages of starting an online alcohol delivery business

By Gursumeet Kaur 30th July 2021

Buying stuff online is a passionate habit being developed by consumers considerably. Consumers nowadays prefer and spend most of their time browsing products online and making purchases for almost all basic and luxurious commodities from groceries to pieces of jewelry, etc.

While this fad of placing orders for products using smartphones and other means of technology is picking up pace, research shows that consumers find it useful to skip their trips down the liquor stores and rather order the exact preferred drink online.

alcohol delivery business

Infographic facts to boost your thoughts to move online

According to statistics released by the U.S. Department of Commerce, consumers spend around $54.1 billion on the purchase of alcoholic drinks.

Statistics of the alcohol industry in 2021:
  • There are nearly 10,000 wineries in the U.S. alone.
  • Total alcoholic beverages sales in the U.S. is $253 billion.
  • If we talk specifically about wine, the total retail value of wine sales in the U.S. is $68.1 billion.
  • Wine production in the U.S. amounts to 24.3 million hectoliters.
  • The average Year-over-Year (YoY) growth from 2014-2019 for the online alcohol delivery industry was 11.6%.
  • Total alcohol sales in COVID-19 lockdown has gone up by 58%.
  • Breaking down the stats: Wine was up by 39%; Beer 62.4%; and Liquor 59.5%.
  • If we see week-over-week growth in online alcohol sales, it’s approximately 234% since COVID-19 struck, compared to last year’s sales.
Direct-to-Consumer information:
  • Rabobank’s research shows that direct-to-consumer online alcohol sales reached $410 million in 2017, due in large part to wineries. As stated in BeverageDaily, “The winery tasting room remains the leading direct-to-consumer experience, and major wineries are upping their online retail game. The top 20 percent of wineries selling through their websites are responsible for 90 percent of revenue flowing through the channel, with an average order value of $363.”
  • Blurring the direct to consumer model are companies like Naked Wines and Winc, which operate as licensed wineries and fulfill deliveries across the United States.
alcohol delivery business

What delivery mode options are available for your on-demand delivery platform?

There are two delivery modes supporting your online alcohol delivery business through which you can provide ease to your customers:

  • Takeaway/Click and Collect: The customer can select and order the product from your store online but can collect it from your offline outlet. This model helps the customers to order & collect their drinks without waiting for the product to be picked and packed.
  • Home Delivery: This is where the customers can order liquor online and get the  delivery at home. There can be two segments in this model, one is same day delivery and the other is scheduled delivery, where the customers can select a preferred date and time to get their drinks delivered.

How to earn with an online alcohol delivery platform?

Here are some of the most lucrative sources of revenue for your alcohol delivery business:

  • Advertisements: Advertising is a major medium of earning revenue for any online platform. Businesses partner with other platforms or add discount and promotional banners within their marketplace to enjoy high traffic and escalate sales. This is a great way of generating revenue and improving product visibility.
  • Premium memberships: To earn a balanced revenue, businesses should emphasize on building repeat-customers so they continuously place orders. For that, offering premium memberships to customers as well as vendors is a good option for increasing revenue. Premium memberships can entail numerous benefits such as zero transaction fees, free delivery, some percentage off on all orders, etc.
  • Commission on every transaction: The most important source of revenue is by charging a commission on every transaction. The admin provides a platform for the liquor and wine via which the transactions can be completed. The business then can earn a commission for every transaction that is processed.

8 prime advantages of moving your alcohol delivery business online

  • Contactless orders: The COVID-19 pandemic has forced everyone to maintain social distancing and personal hygiene. From working from home, education and schooling on online apps to restriction in purchasing groceries and other items from malls or shops, it has made everyone’s lifestyle completely different. Let us accept the fact that the majority of the audience having fine access to technology and internet today, rely only on the on-demand delivery services to avail contactless orders.
  • Global Access: You can provide their products and services globally without having any kind of restrictions to serve only locally. The deliveries can be carried out 24 hours a day and 7 days a week as per the customizable schedule set by the businesses. Moreover, the alcohol sector is hot the whole year, thus seeking more demands.
  • Convenient Payments: You can make your customers pay the way they want to. Online payments or COD, allow your customers to pay as per their convenience. Online platforms would also allow you to facilitate cashless transactions and track daily transactions too.
  • Saving Consumer Time: Customers no need to stand in the queue and wait for their turn, thus saving a lot of their time. Now no more returning customers from your store due to a big line. Take in all customers orders without any loss and take your sales to an exponential number. 
  • Better ROI and Analysis: Online platforms come with a convenient piece of analytics section wherein you can easily access and analyse your customers, vendors, sales, orders, and many more. With graphs and tables, it makes it easy for businesses to compare the statistics and work on the gaps for improvements as and when required.
  • Stock & Inventory Management: You can efficiently manage your stock and inventory of the liquor you cater, thus reducing the manual work. The online system self-updates the inventory when an order is placed by the customer. You need not allocate humans to the systems to update each inch of information, let your online platform do that for you.
  • Effortless promotions: Businesses can earn maximum profits with potential & repeating customer base through multiple mediums like discounts, promo codes, liquor occasional sales, etc. This drives the customers more towards your online store, thus increasing profits in business.
  • Improved customer support: While giving the best liquor products to your customers, you surely want to have their feedback and even complaints entertained. The online platform makes it easier for you to check the customer queries and respond to them in very less time.

A channel to fulfil your on-demand alcohol delivery demands: Yelo

As tech evolves, you’ll find more opportunities to add value to your audiences, like community building and community support. This isn’t an impossible feat, but it requires a conscious effort. And that is why Yelo is here for you. Yelo is a pre-managed hyperlocal marketplace development platform that gives you access to ready-to-use elements for creating your marketplace.

You may also like to read:

How to build an alcohol delivery app?

In technical terms, we will call Yelo a Software-as-a-Service (SaaS) system that allows users to create a new product using the SaaS’s abilities and features without writing even a single line of code, designing, and testing.

Yelo comes along with a variety of features that your online alcohol delivery business can incorporate. Some of them are:

  • Customized Web apps and Mobile apps for your customers: Customizable & fully responsive mobile-friendly website and apps for both iOS and android to facilitate customer ordering on the go. Option for beautiful themes for your platform helps you enhance the user experience even more.
  • Ratings and reviews: Build a reputation for your online marketplace using the rate and review system. Let your customers be the judge for your pest control service quality.
  • Advanced Search & Filters: Search by keywords, dates and categories. Filtering and sorting by price, name, and rating are also enabled.
  • Real-time tracking: Track real-time on map, Optimize routes and schedules and resource allocation in one centralized view.
  • 100+ payment gateways: From Paypal to Razorpay to Paytm, Yelo has integrated with over 100+ external payment gateways from around the world. Enable one or multiple payment gateways on your platform for your customer, as per the requirement.
  • Google Analytics: Google Analytics works with your online marketplace, so you can track bookings, visits, and referrals.

Discover top-notch features for launching your Direct to Consumer (D2C) brand for alcohol delivery business and selling products directly to your customers online. Book your 14 days free trial now!

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