The e-commerce industry has grown incredibly over the years, with more consumers shifting their shopping habits to the Internet. That shows from the impressive growth achieved within the e-commerce industry.
According to Statista, the revenue in e-commerce has risen gradually since 2017 and is expected to generate 1.4 trillion U.S. dollars by 2027.
Part of that e-commerce industry is food e-commerce. Unsurprisingly, it seems many of us are led by our stomachs, with food e-commerce being the fastest-growing of product categories. By 2025, Statista forecasts the industry will bring in nearly $47.6 billion.
With that being said, any food e-commerce business needs to be proactive in its efforts to expand its business while the industry is piping hot. In this guide, you’ll get access to plenty of tips and tricks to grow your business within food e-commerce this year.
6 tips and tricks to expand your food e-commerce business
There are a lot of food e-commerce businesses online, meaning you’ve got to pull up your socks and work hard to get noticed. There are, of course, some useful tips and tricks to achieve notoriety online.
1. Look at existing trends for food and beverage e-commerce
As with much of the internet, food and beverage e-commerce is always evolving. If you want to stay relevant as a business, then it’s important to find ways to expand your food e-commerce through existing trends.
There are a variety of useful trends for food and beverage e-commerce that your business is able to make use of this year.
For example, the B2B e-commerce market is worthwhile tapping into. With the damage caused by COVID-19, businesses are restructuring the way they order food and beverages. With online food e-commerce, it’s more convenient than ordering through traditional methods used prior.
You’ve also got a wealth of software and tools that are useful for food e-commerce businesses. These help streamline business operations, which for small companies with limited resources is helpful to implement.
2. Identify a niche within your business that makes it unique
While it can be beneficial to have a broad scope of products and services to offer to your customers, sometimes it’s more useful to have a specific niche.
A niche makes you unique and it will likely help improve the level of conversions you get when it comes to improving sales revenue. Examples of niches within the food and beverage market could be any of the following:
- Organic product
- Vegan or vegetarian foods
- Luxury goods
- Food for specific demographics; adults, children, pets
- Subscription services
By creating a niche, you have the increased opportunity of standing out from other competitors on the market. Subscription services are a great niche to embrace, especially as an infographic by Invesp, found 54% of online shoppers have subscribed to an e-commerce subscription service.
3. Adapt your food e-commerce globally to comply with global taxes
One of the biggest advantages of running an online e-commerce store is the potential for global expansion. While it might not be the right move for every business and some might not yet have the capacity to do so, global expansion is a game changer.
If you’re able to, it’s worthwhile adapting your food e-commerce globally, and to do that, you’ll need to ensure you’ve complied with global taxes. Understanding taxes can be a headache for many business owners, which is why you should look to outsource this service.
As you’re expanding into new markets, it can be hard to figure out where your tax liabilities lie. Using a global tax and security solution is useful when expanding into unknown territories for the first time. The use of global tax services will help you navigate the field of global tax without falling into a trap or getting your online business into financial trouble.
4. Make use of marketing to drive customers to your business
Marketing still remains one of the most important elements of running a business, particularly online businesses in existence nowadays. With so much competition on the internet, many businesses rely on marketing strategies to get their business seen by users online.
If you’re looking to drive customers to your business, then marketing is possibly one of the most influential tricks to embrace. Your marketing team should be looking at ways to enhance the company’s presence online and social media is one of those avenues to explore.
While it’s challenging to maintain a presence on all social media platforms, it’s still worth claiming your business name on all of them. That way, if you’re working on building one or two at a time, you can rest easy knowing you’ve got the business name claimed on other platforms.
From Instagram to Tiktok and Facebook, all of the social media platforms available could be used by a food e-commerce business to market themselves further. The best way to go about it is to learn the tips for successfully scaling each platform before you get into it. For instance, you could learn how to sell on Facebook if you aim to use Facebook as your target marketplace.
Consider what’s trending within the field of marketing currently, particularly when it comes to e-commerce in general. For example, here are a few popular trends to embrace for e-commerce marketing in 2023:
- The use of artificial intelligence (AI) to learn more about shoppers
- AR and VR to enhance the shopper experience
- Livestream shopping
- Personalized shopping experiences
- Focus on sustainability and eco-conscious business operations
- Rise in voice searches and mobile optimization
5. Improve your e-commerce checkout process
In general, across the e-commerce industry, a pinch point within the buyer funnel for customers occurs at checkout. Whether that’s an overly complicated process to surprise fees and taxes added to the cart total, customers end up abandoning their carts.
According to one study, 17% of online shoppers in the US abandoned their order due to a long/complicated checkout process. As a business, you want to improve this process to make it more seamless and straightforward.
Cut down the hoops your customers need to jump through in order to finalize their payment. Offer plenty of payment methods and provide transparency in shipping fees and costs before the customer clicks the checkout button.
It may be useful to maximize sales at this point by offering upselling but make sure it’s not overcomplicating the checkout too much.
6. Take advantage of your email subscribers
Finally, in order to maximize your efforts in marketing, do take advantage of email subscribers. Email marketing still remains one of the most popular methods of marketing because it’s personal and most people have an email.
If you’ve built up quite the email subscriber list already, then make use of segmenting and nurturing your subscribers. These lists might be made up of potential leads, first-time customers, and repeat customers. Implementing a CRM might be a good way of helping more prospective customers down your sales funnel and encouraging further sales after that initial purchase.
The basics of building a food e-commerce business
If you’re only starting out as a food e-commerce business or you’ve yet to get a food and beverage idea off the ground, then this section might help you. We’ve put together a few basic tips when building a food e-commerce business that should help you get off on the right footing.
Research food laws
Food laws are something that you shouldn’t avoid when setting up a food e-commerce business. These food laws may vary depending on where you’re located and where your customers are based.
Be sure to research food laws extensively so that you’re compliant in all territories that you plan to sell to.
Source your products and ingredients
Sourcing the products and ingredients you’ll use for your e-commerce is highly important. After all, you want to source produce that’s quality driven but doesn’t eat up all of your potential profits.
Build your brand
Building a brand takes time and a lot of effort on your marketing team’s part. If you don’t yet have a marketing team, it’s worth outsourcing this service.
Strategize your marketing plan so that you’ve got some direction to give to the agency or marketing business you outsource this service to.
Set up inventory management and make use of online tools
Setting up an inventory management system is going to help manage stock effectively. It means you can satisfy more customers by not always showing that ‘sold out’ notification. Make use of online tools and apps that help set up your inventory from the moment you open up your store.
Plan for growth and development
With a food e-commerce business, there’s much more opportunity for growth and development than traditional in-person organizations. You’ve got the ability to expand to a global scale, which is why it’s always worth having a business plan in place. Don’t neglect this plan and make sure you’re checking in to review your progress as time goes by.
Expand your food e-commerce business this year
The world of e-commerce continues to remain an integral part of a shopper’s experience across the globe. If you’re planning to start up a business like this one or you’re looking to step up an existing business, now is the time to do so.
Author Bio: Natalie Redman (LinkedIn)
Natalie is a freelance writer with two years of experience in web page copywriting for businesses across many industries. She’s also the owner of two blog websites and a Youtube content creator.