From groceries and hot meals to clothing and pet food, customers love the convenience of ordering their favorite products right to their doorstep.
That’s why it’s no surprise that direct-to-consumer (DTC) liquor delivery is one of the biggest trends currently shaping the liquor retail industry. However, a confusing web of state laws paired with the inherent risks of shipping age-restricted products makes offering liquor store deliveries more difficult than other industries.
But the payoff is worth it. Giving customers another convenient option for buying your products is an easy and effective way to boost sales and stay competitive.
In this article, we’ll cover some of the biggest challenges in local liquor delivery, plus practical tips for how to overcome them.
Before You Start: See If DTC Alcohol Shipments Are Legal in Your State
If you’ve never offered delivery at your store, take a moment to consult your state laws. Rules and regulations surrounding DTC liquor sales vary wildly from state to state, and even if your state allows online sales for curbside pickup, don’t assume that delivery is permitted.
Contact your local beverage authority or chamber of commerce and ask:
- “Are liquor shipments directly to people’s residences allowed?”
- “Are there separate rules for delivery of online orders vs. in-store?” (Some states allow deliveries if the origin of the order is in person.)
- “Are there order limits on alcohol shipments to customers?”
- “Are alcohol sales allowed through third-party services like DoorDash?”
There’s no point in perfecting your last-mile delivery logistics or investing in an omnichannel order management system if alcohol deliveries are a no-go in the first place.
Why Are Alcohol Shipment Rules So Different From State to State?
Alcohol laws are complicated, to put it mildly. When prohibition ended in 1933, specific rules about the sales of alcohol were left largely to the states. Even within the same state, there can be slight legal variations between different counties and cities.
To make matters more confusing, many states eased restrictions on alcohol delivery during the pandemic — some were extended and others expired.
The bottom line: Navigating the rules on liquor shipments is messy. We recommend checking in with your local chamber of commerce or chatting with other businesses in your area before expanding into new sales channels.
You can also check out the resources on the Alcohol and Tobacco Tax and Trade Bureau’s website.
See a Success Story: Charlie’s II
5 Tips for Compliant Alcohol Shipments and Happy Customers
If your state allows it, offering delivery at your liquor store is a great way to boost sales and reach new customers — but it’s imperative to make sure your deliveries are safe and compliant.
1. Verify Age on Your Website and at Delivery
As a liquor store owner, you know that underage sales can hurt your business. Not only does it put your retail liquor license at risk, but it can damage your reputation with your customers and community.
The same is true for online sales — especially since your staff can’t check the ID of everyone who browses your website.
Here are some general best practices to ensure your deliveries stay compliant with state law:
- Age-gate your website. Require all visitors to enter their date of birth before they can browse your selection or place an order.
- For online sales and credit card payments, only use vendors that support high-risk payment processing.
- Do not allow delivery drivers to leave deliveries in a mailbox or on a doorstep.
- Require delivery drivers to check for a valid ID and get a signature before delivering a package
While some of these requirements seem inconvenient at first, having one of your shipments return to your store because no adult was around to accept it is infinitely preferable to delivering a shipment of liquor that ends up stolen or in the hands of someone underage.
2. Check for Limits on the Type of Liquor That Can Be Shipped
Even if your state allows for at-home alcohol deliveries, there may be limits to what type of alcohol is eligible for online sales. Some states allow liquor shipments, others only permit beer and wine, others allow cider but not wine, and some make special exceptions for certain liquors.
Again, check your state’s laws to know exactly which liquor products are eligible for online sales and which aren’t. You can then specify in your inventory management system which product categories can be ordered online and which to exclude.
If you operate in any of the 10 areas listed below, good news! You can ship any type of spirit:
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States that only allow beer and wine shipments include:
Note: There may be additional restrictions if you live in a control state.
Even if you can’t sell and ship everything online, it’s a good idea to list your full selection on your website. This way, potential customers can browse your stock before visiting you in person. Just make sure to put a disclaimer on your home page that explains any state limits on liquor delivery so customers know what to expect.
3. Work With Approved Delivery Services (or Set Up Your Own)
As mentioned, you’re responsible for keeping your sales compliant, whether your orders are made in store or placed for delivery. An important part of maintaining this compliance is by only working with trusted delivery services — whether internal or third-party.
If you work with an outside service, make sure they can explicitly deliver age-restricted goods and support options for ID checks on delivery. If you use a service that just leaves alcohol at the doorstep without checking ID and getting a signature, your store, not the delivery service, will suffer the consequences.
That said, last-mile delivery services can incur fairly hefty fees, so it might be more cost-effective to use your own vehicles and drivers instead. If you go this route, ensure the vehicles you use are insured for commercial deliveries and your drivers are trained on what to do if a customer is unavailable for delivery.
If you do deliveries in house, you might want to limit what area codes you deliver to and create explicit delivery windows so your staff have time to receive and pack orders each day.
4. Keep Detailed Sales Records and Enforce Order Limits
In addition to limits on what types of liquor can and can’t be sold to individuals, some states also have restrictions on how much a person can buy at a given time. Make sure your liquor store e-commerce solution has built-in limits on the number of items a customer can buy if you live in one of these states.
Most states require you to keep detailed sales, inventory, and delivery records, with many agencies requiring you to keep records between three to five years. Maintaining these records by hand is risky, especially as you rely increasingly on third-party services to run deliveries.
Instead, use an industry-specific point of sale (POS) system that connects all of your sales, vendor, and inventory records for simplified compliance.
5. Have a Clear Return Policy That Complies With State Laws
When you sell products in person, you know that a customer is buying exactly what they want — and that it’s in an acceptable state. Because of this, many stores won’t accept returns once a customer walks out of the store with their purchase.
With delivery, you don’t always have that same level of certainty. Shipments can arrive damaged, or the wrong items sent — which means it’s extremely important to have an unambiguous return policy for each sales channel.
Make sure your website states exactly:
- What items can be returned, and what condition they have to be in (e.g. unopened, in original packaging)
- Acceptable reasons for returns (e.g. wrong item was delivered)
- How returns are processed (e.g. store credit, refunded to credit card)
- What’s required for a return (e.g. customer must present a receipt in person)
Remember: The best defense is a good offense. Having the right processes in place when fulfilling orders and using reputable delivery services should prevent the majority of liquor shipment issues. Keep these in mind:
- For damage: Requiring a signature at the time of delivery gives customers a chance to spot any potential damage before the order is dropped off.
- For wrong items: Using mobile scanners to scan item barcodes and verify them against the order before packing will reduce the chance of errors.
Some states have laws barring returns of liquor — but in the majority of cases, this applies to wholesalers and retailers, not consumers. That said, it’s always worth checking in on your local laws, just in case.
Beyond Compliance: 3 Bonus Tips for a Better Customer Experience
Of course, being fully compliant with liquor laws doesn’t mean your liquor deliveries will run smoothly. Here are three additional tips to keep your customers happy and profits up.
1. Unify Customer Data Across In-Store Sales and Delivery Channels
Customers who shop at your store across multiple channels might spend up to four times more than customers who only shop in store. So, it’s no wonder that many independent liquor stores are excited to move into online sales.
However, if the online and in-store shopping experiences feel completely disconnected, or if the online experience is barebones in comparison, customers may give up on it altogether.
That’s why it’s important to track customer profiles, loyalty perks, and sales history across sales channels. Use a POS system that integrates with your various online and third-party services to ensure that no matter where your customers choose to shop, they can pick up right where they left off.
2. Decide on a Pricing Strategy To Absorb Delivery Costs
Offering online ordering and delivery can be great for your liquor store’s bottom line — but that added convenience doesn’t come free.
To ensure your liquor delivery is still profitable, you need to consider how to make up for the added delivery fees. There are a few different strategies you can try:
- Add a fixed delivery fee to every order. Calculate your costs for each delivery that goes out and divide by the average number of orders as a starting point.
- Create a separate item price for in-store pickup and deliveries. This can be set up on your POS system’s backend. If you use this strategy, make sure to list both prices on the product page, so people aren’t confused with a higher price at checkout.
- Set a minimum order quantity for online orders to recoup delivery fees. You can also waive delivery fees for orders over a certain amount. Both strategies encourage upselling in exchange for added convenience.
Regardless of which method you choose, don’t hide fees from your customers. Be transparent and upfront about any added costs so customers aren’t faced with an unexpected charge at the last minute.
3. Overcommunicate With Customers
Regardless of how you execute your deliveries, you don’t want to leave customers in the dark. Make sure to send a message to customers when:
- An order is received
- A shipment is prepared
- Orders are out for delivery
- Orders are delivered
Most of the time, this communication can be sent automatically when an order goes through your order management system. That said, be prepared to send out messages manually if there are unexpected delays or if a requested item is out of stock.
Related Read: Liquor Store Franchise vs. Independent Liquor Store: Which Is Best?
Seamlessly Sell Liquor From Anywhere With Bottle POS
Just like you can’t make a great margarita without a cocktail shaker and the right tequila, you don’t want to try tackling liquor deliveries without the right tools.
The best way to scale up your liquor business to offer online sales and deliveries — without adding complexity or compliance — is to use an industry-specific POS system.
At POS Nation, we’re passionate about matching small, family-run businesses with the industry-specific tools they need to thrive. Talk with one of our liquor industry experts today to find the right system for your needs.
by Cort Ouzts
by Spence Hoffman