Ever thought of selling tea online? Tea is an aromatic and refreshing drink that is considered one of the most popular beverages consumed just next to water and can be enjoyed by people of all ages. One of the best things about tea is that there is an abundance of types of teas out there with their unique flavor, benefits, and aroma.

Selling tea online has been considered to be a profitable and rewarding business. Although it is still considered a business, you will face many factors and challenges when selling tea online. This post will teach you the ropes and what you need to know about how you can start selling tea online.

Why Sell Tea Online?

The first question that might pop into your mind is ‘why sell tea online?’ Well, as previously said, selling tea online is profitable, but there are more ways you can benefit from it. Here is a rundown on what to know and why you should start an online tea business.

• • • Audience -You can find tea in 80% of all U.S. households. You are sure to have a large pool of selection of target audience and customers.
    • Variation of Consumption – Tea can be enjoyed in many ways, such as iced, hot, bags, mixed-in drinks, and ready-to-drink. You can also try going a different route and selling herbal tea as a business.
    • Investment – Investing and creating an online tea business doesn’t have to break your bank account. Selling tea online can start from the comfort of your home and work your way up to provide more quality.
    • Market Growth – According to reports, the global tea market is expanding by more than 5.5% from 2019 to 2025 due to the rising awareness of consumers on the benefits of tea.
    • Variety/Expansion– Online tea businesses do not need to be confined to selling only tea leaves. They expand their businesses to also include accessories, mugs, timers, warmers, and towels, among other things.

Where is Tea Grown?

The evergreen tropical plant Camellia Sinensis usually grows best in cooler climates with acidic soils. These tea plants are grown 3,000 – 7,000 feet above sea level in mountainous areas.

• • There are more than 30 countries that produce and grow tea plants, but the primary producers are China, India, Sri Lanka, and Kenya.
  • Today tea can also be grown on estates or privately owned land called smallholdings.
  • True teas can be classified base on their growing region. India is famous for its black tea varieties, while Japan and China are famous for green tea cultivation. Ceylon is a famous tea that is produced in Sri Lanka.

How Is Tea Harvested?

• It is grown as a bush with an approximate height of 1 meter.
• Before tea plants can be harvested, they must meet an age requirement of 3 years before the leaves can be used for tea consumption.
• The tea plant is considered a delicate plant, so farmers usually harvest and pluck this plant by hand.

How is Tea Produced?

As previously stated, there are six varieties of tea types, and one of the ways to differentiate these types is through how these teas are processed. Overall, we will discuss five processes here.

• • • Withering – Leaves are laid out and left on fabric or mat to wilt. This process reduces the water content of the leaves by half.
    • Bruising – Leaves are twisted, rolled, and crushed. This process is vital as the leaves must be crushed evenly to create a consistent batch of tea. The purpose of this step is to break down the cell wall and facilitate the next step: Oxidation.
    • Oxidizing – After bruising, the leaves are left out to wither and turn brown. This browning process is caused by an enzymatic reaction and is one of the primary factors that differentiate the six types of tea.
    • Fixing – Once they attain the intended oxidation, the tea leaf is heated to stop this process. Apart from black tea, all tea styles apply this process.
    • Drying – The final step is a drying process, which removes any residual moisture and can now be packaged.

Two Categories of Tea

True Teas – Made using leaves of Camellia Sinensis. Six types of tea fall under this branch. Although, the difference only arises due to how the tea is processed.

• • White – Least processed. Leaves are simply sun-dried after harvesting.
  • Green – Partially processed. Leaves are bruised but not allowed to oxidize.
  • Oolong – Fully Processed but oxidized for a short period.
  • Yellow – Partially processed like green tea but oxidized for a short time.
  • Black – Fully Processed. Left to oxidize till deep brown.
  • Pu-erh – Underwent fermentation processing.

Herbal Teas – This tea is made from various flowers, spices, and herbs. Unlike true teas, they do not contain any tea plant leaves. Now that we have the proper knowledge and education, we can start selling tea online. The next section of this article discusses things to consider when trying to sell your tea online and tips for creating your online tea business.

Things To Consider When Selling Your Tea Online

Dropship

Dropshipping is a type of business wherein a company can operate without having an inventory, warehouse, or shipping logistics. In layperson’s terms, dropshipping is when a retailer partners with a dropship supplier that manufactures, stores, and ships the products to the customer on the retailer’s behalf.

An example of a dropshipping app is AliExpress or Spocket, which allows you to choose from a wide variety of tea leaves or products that you might think your niche customers may enjoy.

Pros of Dropshipping Tea

• • • Easy to set up: You can already start in a few steps. First is to find the supplier, second is to set up your website, and last is to sell your tea product.
    • Improve Scale of Business: Unlike traditional businesses, where you need to invest more and work more to have more profit, drop-shipping can help you focus more on marketing, branding, and customer relations.
    • Cost of Investment: As previously stated, you don’t need to own the things you sell physically. You will only be paying for the website and its associated cost.

Cons of Dropshipping Tea

• • • Tiny profit margin: Drop-shipped teas are inexpensive, lightweight, and ordered regularly. There is only a slight margin of profit as you sell these things.
    • Limited variety: As there are a lot of dropshipping companies, you need to find the one that is suitable to your niche, but they might only cater to the more generic tea types.
    • Complete Liability: If there is a problem with the customer’s order, all of it will be the retailer’s fault.

Wholesale

Another thing to consider when selling tea online is to contact the tea leaf supplier directly. Wholesale, by definition, is when you buy goods in large quantities from manufacturers and sell them to other businesses. The supplier will ship your tea of choice directly to the specified address you’ve given, and once received, you can place the tea you’ve ordered in your desired packaging. Although this process is a bit time-consuming, you can ensure the quality of each product you will put out.

Pros of Wholesale Tea

• • • Control of quality: As you are now the one creating and branding your tea, you have more control over the quality of the products you will sell.
    • Competitive Prices: You can choose from a large pool of resources and offer a more specific type of tea that appeals to your customer while maintaining competitive prices and profit.
    • Benefits: If you have good relations with the wholesaler, you can test specific bundles and discounts that might offset certain costs per good. This will also increase the average order value.

Cons of Wholesale Tea

• • • Inventory Space: As the supplier directly sends you the tea, you might not have the proper inventory and storage space to order and house many items, thus limiting the number of orders.
    • High Cost: The cost of choosing wholesale is that you will need to be hands-on with your brand and business. You will be responsible for everything from packaging, shipping, and website maintenance.
    • Time Consuming: As previously stated, this process is time-consuming as suppliers will send the tea as leaves directly. You will be the one to put them in the packaging and prepare them one by one, thus limiting your time for other activities such as marketing and business scaling.

8 Tips To Start Your Online Tea Business 

1. Start with an Idea
2. Find Your Customers and Competition
3. Create Your Brand and Business Entity
4. Building an Online Store for Your Tea Brand
5. Develop the Product Line
6. Branded Packaging for Your Tea Products
7. Marketing & Growth for Your Tea Brand
8. Shipping Your Tea Products

2. Find Your Customers and Competition

Once you know what niche you would like to focus on, you can start targeting the perfect customers for your online tea business. Try a basic market search on who would consume your products and the competitor’s existing product line. Understand your target customers so that you can create your brand and focus on those specific groups. It is also advisable to be familiar with the competing products as you may find what’s working and missing from their products.  

3. Create Your Brand and Business Entity

Now that you know what niche you want to cater to and sell. The next critical step is naming your company and registering your business with the proper entities to make your business legal. Your company or business name will determine how you impact your customers. Aim to select a name that will encapsulate the brand you want to be perceived by your target audience and niche. To become a legal business, you must register with the corresponding entities depending on where you live.

• • Employer Identification Number (EIN) – You can obtain this from the IRS. This is important for you as you will need it when opening a bank account and filing taxes.
  • Business License and Reseller License – You must register in your state.

4. Building an Online Store for Your Tea Brand

Now that you’ve applied for and received your business’s critical permits and documents, you can set up your online store. As an online seller, your website will be the first thing your customers will see, so it needs to appeal to them and create an enjoyable shopping experience. It is now easier than ever to set up a website for your business as some platforms have started offering an all-in-one website/store. An example is Shopify, which does everything from website design to processing your payment transaction.  

5. Develop the Product Line

During your market research, you might have come across the competition’s tea and product line. Your business must be able to create and offer a product that your customers will love. It is essential to pinpoint and take away the best ideas of other products to make your version of it. In short, your product must meet and exceed your customer’s expectations! Leaving a good impression will prompt them to leave reviews on your social media profiles, mention your product/brand on their social media pages, or influence others by word of mouth. You don’t need to have various products at the start of your business because you can gradually innovate over time.  

6. Branded Packaging For Your Tea Products

Another factor that will make an impression on your target customer is the packaging. Overall, the experience that you might want your customers to feel is excitement when they’re opening their package. Packaging can also become a marketing strategy that can help further generate sales.

Tips on creating the perfect packaging

• • Color – Use bold and bright colors to attract the eye. Use proper color matching for marketing depending on the niche of your choice (ex., Green = Health, Red = Excitement)
  • Movement – Incorporate styles in packaging that will create “movements,” such as matte or gloss lamination.
  • Certifications – You can also add credentials to your packaging to inform customers that what they buy is from a legitimate business.
  • Container – Unboxing your product should be an exciting experience for your customers. You can try different packaging until you find one that suits you. Apart from that, you can also make your container eco-friendly and reusable

7. Marketing & Growth For Your Tea Brand

Now that you have your product and package, you should focus on marketing and growing your brand. Today, with the variety of social platforms, you can efficiently market your product through social media platforms such as Facebook, Twitter, or Instagram. Your goal is to promote and sell your products as much as possible.

Ways To Promote Your Online Store

• • Social Media – The best way to promote your product as most of this is readily available and free to use to engage and reach your customer.
  • Email Campaigns – Creating emails and newsletters can also help let your customers know what’s happening to your brand.
  • Tea Blog and Content – There are different ways that a blog can help you and your brand. One way it can help is that it can certify your expertise and develop credibility. Another way it can help is through SEO and visibility.
  • Face-to-Face – A great way of marketing your brand is to meet people and get the word out to local communities and markets.

8. Shipping Your Tea Products

Another thing that you should consider is how you ship your product. Although, this is another cost that you should have a budget for. This will also include other factors such as warehousing, finding a courier, gas, and other logistics factors.