5 Best Practices for Delivering Alcohol Direct-to-Consumer

While alcohol delivery is nothing new, the popularity of shipping alcohol directly to consumers has significantly increased ever since the first lockdowns. 

Direct-to-consumer (D2C) alcohol delivery ties in with two major consumer trends: on-demand delivery and Q-commerce. Whether it’s groceries, household goods, or a restaurant meal, today’s consumers have become used to ordering products online and delivering them to their homes with just a few clicks.

The demand for convenience has turned on-demand alcohol delivery into a fast-growing business predicted to reach $42 billion by 2025. 

Third-party alcohol delivery services like Drizly, Zapp, Speakeasy, and Minibar saw a dramatic increase in sales over the past few years as delivery became an essential part of people’s lives. In 2021, major global delivery aggregators DoorDash and Uber Eats entered the alcohol delivery space —even acquiring Drizly— to capitalize on this high-margin category.

Can your business also benefit from this growing consumer trend? Let’s find out.

Why on-demand alcohol delivery presents an opportunity to all businesses

Whether you run a restaurant or a grocery store, selling alcohol online and providing delivery options can help increase your company’s profitability.

Alcohol typically accounts for between 20% and 25% of restaurant revenue. Offering alcoholic beverages for off-premises consumption can boost the bottom line considerably. Adding alcohol to the online menu can increase average ticket sizes as consumers add drinks to their orders.

For grocery and convenience stores, alcohol delivery provides a fresh opportunity to expand their footprint beyond the customers who walk by their doors and reach them more conveniently.

Besides creating new revenue streams, delivering alcohol Direct-To-Consumer D2C enables operators to extend the customer experience into their consumers' homes, maintain flexibility, and drive additional branding campaigns.

Alcohol Q-commerce also delivers extra value to customers, meeting their demand for convenience, saving them time, and allowing them to see and compare local beverage options before ordering.

Top 5 tips for delivering alcohol

Before you start packaging your bottles, cocktails, and other beverages and sending them to the world, here are a few best practices to optimize your alcohol delivery operations.

#1 Select the right Online Ordering System

Delivering alcohol is similar to delivering food or groceries, and you can sell directly through your website or partner with third-party delivery services to fulfill your orders.

Each option has its pros and cons depending on the size of your business and your individual needs.

When customers order directly from you, you cut out the middleman entirely. That means you don’t pay commission fees that erode profitability; you get instant access to customer data and have complete control over the customer experience from start to finish.

However, operating your delivery service can drain your time and resources. That’s why, for many companies, working with third parties has a major appeal. Partnering with these delivery providers lets you set up fast with little investment. You can outsource the entire delivery process and benefit from exposure to your partner platforms’ audiences. The more platforms you sign up with, the more customers you’ll reach.

Book a 1:1 talk with one of our experts to learn more about one of the best online ordering system for restaurants

Whether you sell and deliver alcohol yourself or through a partner, it’s important to streamline your delivery activities so you can run your daily operations as efficiently as possible. 

Integrating your sales channels with your POS system or ERP aggregates all orders onto one screen. The integration lets you automatically sync inventory, change menus across locations and platforms, and consolidate sales reports.

#2 Build your brand

Whenever you include a new item in your online offering, you need to promote it. The same goes for any alcohol put up for delivery. If your customer isn’t excited to buy alcohol from you, he’ll take his business elsewhere.

Use any customer data and insights to create enticing promotions and deals, and don’t be afraid to pull out all the stops to let your customers know about it.

With alcohol delivery, you also have an opportunity to sell specialty items, like vintage wines and exclusive beverages. Send customers personalized offers based on their interests and order history, and consider rewarding your regulars with loyalty points or other incentives.  

Virtual brands can also play an important role in your marketing strategy. Deliverect customers have found that creating multiple virtual alcohol brands from one store significantly increased their reach and increased orders.

#3 Don’t forget about compliance

Selling alcohol online is a bit more complicated than selling meals or consumer goods in terms of safeguards, rules, and licenses. 

Ensure you know your local laws and obtain the licenses D2C sellers need.

You’ll have to follow strict compliance regulations that depend on your location. Sometimes, authorities require you to outline the steps your business will take to ensure your alcohol doesn’t end up in the hands of minors. 

Alcohol delivery is also subject to different shipping and packaging rules based on your country, county, or state. Typically, shipping rules include that any alcohol must be shipped in a properly labeled package indicating it contains alcohol. In most cases, an adult’s signature is required upon delivery.

Finally, you need to issue a VAT receipt for each transaction. Like any other incoming order (both on-site and off-premises), each online alcohol sale needs to be registered in your POS or business system for you to be VAT compliant. Invest in a tech solution like Deliverect that will do the heavy lifting for you.

#4 Deliver an integrated experience

Today’s consumers expect nothing less than exceptional service and a seamless and unique customer experience. When delivering alcohol, consider how you can make your customers’ experience special, from when they first visit your page to unboxing their order. 

Minibar, for example, blends content with commerce by offering an inspiring blog, liquor guides, cocktail recipes, tips and tricks for selecting various types of alcohol, etc. 

When packaging an order, you can include branded recipe cards, suggestions for other products based on the customer’s order, or even a QR code for a Spotify playlist.

Other ways to charm customers include creating special package deals, online happy hours, or DIY cocktail kits. Try mixing things up by working with other companies in your area, like local wineries or cocktail bars.

#5 Understand your customers

To provide an excellent experience, you must get to know the customer behind the order. 

One of the biggest benefits of selling direct-to-consumer is the data you own. Using that customer information allows you to optimize your offering based on data and help you identify trends and customer preferences. Building a lasting connection with consumers will be much easier when you're in the know.

While selling directly through your website gives you more access to data, platform solutions like Deliverect can also help you gain insights into your sales data from third-party delivery services.

Done right, alcohol delivery is a win-win for all parties involved

Customers love the convenience of ordering alcohol online and having it delivered wherever and whenever needed. Business owners, too, benefit from this new consumer trend to maximize profits, connect with consumers, and enhance the omnichannel customer experience.

Whether you are a restaurant or a retail brand, you can meet today’s consumers’ demands by offering alcohol for delivery through your channels or those of delivery aggregators.

Whichever option you choose, investing in innovative technologies that will help you run a streamlined online ordering business is key to optimizing revenue while making the best use of your resources.

Reach out to our delivery experts today to get started with on-demand alcohol delivery.