The rise in working from home has turned selling coffee online into a major business. Customers that could no longer frequent their favorite coffee shop during the pandemic turned to getting brews delivered straight to their doorsteps, a habit that seems to have stuck: annual revenue from the coffee segment globally has reached $433 billion and is set to grow again in 2023.
With such huge demand, there's never been a better time to start selling coffee online–and dropshipping coffee is a quick and straightforward way of making this happen.
What is coffee dropshipping?
Coffee dropshipping is a subset of the coffee business in which a coffee retailer orders existing coffee blends from a roaster, which ships them directly to the customer. In other words, the coffee dropshipping supplier sources the beans from wholesale coffee suppliers, crafts coffee roasts, and ships orders to customers. The retailer, meanwhile, creates a brand image and in some cases packaging, attracts customers, and fosters relationships—without having to store the product.
Dropshipping coffee can take three forms:
- White label coffee dropshipping. White label dropship coffee suppliers are effectively wholesale coffee dropshippers. White labeling means the supplier produces a tried-and-tested coffee roast and lets you, the retailer, sell it under your brand name. To set your coffee brand apart, you package the product with custom labels, coffee bag sizes, and pricing. The coffee supplier takes care of order fulfillment and shipping.
- Private label coffee dropshipping. Private label coffee dropshippers let you create coffee blends to sell under a private-label brand. This sector of the coffee dropshipping business appeals to companies that want more control over their product. With a private-label dropshipper, you can create coffee products not available anywhere else—but unlike a traditional coffee shop, most of the work takes place at the supplier level.
- Dropshipping another brand's label. You don't need a custom brand to sell coffee online. Dropshipping coffee can also mean selling another company's brand through your online store. While you don't get to create a custom brand or roast, this option means you can still run an online coffee business without acquiring and storing coffee merchandise.
Coffee dropshipping: a step-by-step guide
1. Choose a coffee dropshipping supplier
Selecting the most suitable coffee dropshipping supplier is essential. Consider delivery times, the range of products on offer, and fulfillment fees and charges to identify the best fit. For example, a supplier might have higher charges but offer quick delivery, which can encourage more sales and boost your overall profits.
Beyond traditional coffee suppliers, consider using dropshipping apps to connect with verified suppliers. These apps integrate directly with your Shopify store to streamline product sourcing and order management. You can also explore Shopify Collective—Shopify's built-in supplier network—to source coffee products from other established Shopify brands, giving you access to quality products with direct fulfillment and no inventory required.
2. Find products to sell and choose your differentiator
What's your unique selling proposition (USP)? What will make your coffee brand different to others? The competition is fierce in the coffee world, so stand out by choosing a memorable name and blend. Consider the origin of the coffee, how it's roasted, and the coffee beans used to determine what sets you apart. Also decide whether you'll sell other complementary products, like coffee cups, flasks, or milks.
Most coffee dropshippers allow you to create your own custom labels so you can customize your offering to match your USP.
3. Set up your Shopify store
Shopify's extensive library of themes and powerful integrations make it the perfect ecommerce platform for your coffee brand. Create a storefront for your coffee business and customize it with your brand colors, images, and copy. Finally, populate it with your chosen dropshipping products to start selling. If you need help getting started with dropshipping, check out our comprehensive dropshipping guide. Review our ecommerce website launch checklist to make sure you're ready to start selling.
4. Launch your store and market it
Once your storefront is stocked and your branding is polished, it's time to launch your coffee dropshipping service.
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Dropshipping Coffee FAQ
What makes dropshipping coffee appealing?
Dropshipping coffee appeals to sellers because it combines low startup costs with rising demand for specialty brews, letting them launch a brand without holding inventory. Sellers can focus on niche markets, like single-origin beans or flavored blends, and spend more time on marketing than logistics since the roaster handles fulfillment.
How does dropshipping actually work?
In coffee dropshipping, a supplier roasts and stores the beans while the retailer runs a branded storefront that forwards orders straight to that supplier. When a customer places an order, the store owner passes the details along, and the supplier packages and ships the coffee directly to the buyer, usually for a wholesale cost or fulfillment fee.
Is coffee good for dropshipping?
Coffee works well for dropshipping because it requires no inventory storage and taps into a home coffee market that keeps growing. Repeat purchases are common since coffee drinkers need regular replenishment, and brand loyalty helps retailers build a returning customer base. The main challenge is standing out, since the coffee niche has heavy competition from established brands.
Is dropshipping coffee worth it?
Dropshipping coffee can be worth it if a seller builds a recognizable brand and a loyal customer base, since per-unit profit margins tend to be slim. Coffee prices are relatively low and many suppliers require minimum order quantities, so consistent sales volume matters for profit. With steady repeat customers, the low overhead still makes it a workable long-term business model.
