Ever-evolving state Alcohol laws have made it easier than ever to sell alcohol on the web. That makes the answer to the question “can you sell alcohol online?” a full-bodied yes – as long as your brand meets all state and local regulations. 

You will need to make sure you are licensed to sell alcohol in every state where you plan to do business. Shipping licenses may also be required. Every state has a different set of laws – and they can be as complex as the flavors of a nice wine. It’s a good idea to check state and local alcohol laws for every place where you plan to do business before you accept that first online alcohol order to make sure you are in compliance. 

Once you have done your homework, there’s a good chance that you have a few options for selling alcohol online depending on whether you are selling in-state, out-of-state, or both.

Can You Sell Alcohol Online Within Your Own State?

Online alcohol sales took off during the pandemic when retailers were hit by months of closures. Every state except Utah allowed restaurants and retailers to sell alcohol off-site during the shutdowns. In some states, alcohol sales were allowed through food Delivery services like Doordash or Grubhub. It was a big success – between March 2019 and March 2020, online alcohol sales rose 262 percent, according to some data. 

Today online alcohol sales in-state are still strong in states that made alcohol sales by online app legal under permanent law. We found that 48 states reportedly allow some kind of online alcohol sales – either directly from the producer (like a winery or brewery), direct from retailers, or via on-demand delivery services like Drizly and Instacart. 

So the answer to “can you sell alcohol online?” is “yes” when it comes to in-state sales in many states. And there are three standard ways to get a product ordered online into a consumer’s hands: in-store pickup, on-demand delivery, and shipping.

In-Store Pickup

Local liquor stores by the hundreds nationwide allow customers to buy wine, beer, and liquor for pickup or on-demand delivery. Large retailers (like Total Wine & More and BevMo) have inventory ranging from imported sake to local craft beers, with pickup usually available within the hour. 

Craft brands that have asked themselves “can you sell alcohol online?” are more and more using their own website to sell alcohol if they have proper licensing (again, make sure you are in compliance in your state). Breweries from Massachusetts to Missouri allow sales of beer to go. Wineries nationwide usually also allow local pickup. Sales of distilled spirits for local pickup is less common making on-demand delivery a better option.

On-Demand Delivery 

Beer, wine, and spirits can be delivered to direct a customer’s door if the state where that person lives allows local delivery. Today, 23 states and Washington, DC allow on-demand delivery of one or more types of alcohol via delivery services like DoorDash and Drizly. The companies partner with local liquor stores and other retailers to sell any type of alcohol allowed for in-state delivery – including popular craft brands. 

Some delivery sites are cheaper than others. So if you’re a small business asking “can you sell alcohol online?” then it’s important to shop around for a partner that won’t take more in commissions than you can afford to spare. 

Not to worry, though – growing competition among apps should keep delivery costs competitive as the market unfolds.

Shipping

Delivery and pickup is great when it’s possible. But a winery or distillery or brewery can’t always get a product to a consumer within the hour, or maybe even the same day. That’s when shipping is the better option. It is possible to ship alcohol via UPS or FedEx if you have all the right paperwork (again, check your state laws). Sometimes it is easier to use a company that handles the shipping for you. That’s where private shipping partners can help. 

Drizly is one of them. More than an on-demand delivery service, Drizly answers the question  “can you sell alcohol online?” by shipping craft beer, liquor, and regional wines in at least 15 states. Drizly shipping is through retail partners for now – but direct partnerships with craft makers appear to be in the company’s future. Alcohol shippers like Minibar and LiquorSplit are taking note by exploring brand partnerships too.

Can You Sell Alcohol Online For Delivery to Another State?

Selling and shipping to customers out-of-state can mean more licensing fees and more paperwork. But it can also expand your market (and profits) beyond your region. That’s an attractive prospect – especially for big regional craft brands that have a following far from home.

Retailers

Take the regional brand Montucky Cold Snacks – a Montana craft beer with nationwide appeal thanks to its pop culture momentum, clean flavor, and low price point. Liquor stores and supermarkets now sell Montucky beer as far away as Pittsburgh. It can also be delivered straight to a customer’s home through licensed third-party retail shippers like Drizly and Saucey, depending on licensing and availability. 

You won’t find any beer for sale on the Montucky Cold Snacks website, just merch. Retail is the craft brand’s chosen path for delivery and shipping both in-state and out-of-state. A retail shipper can help handle compliance issues that arise in the complex world of online alcohol sales. That can help eliminate at least a few headaches for craft brands trying to compete in a global marketplace. 

But not everyone wants to use a third-party shipper to transport their product. That’s where direct-to-consumer (DTC) sales and shipping come in handy.

Direct-To-Consumer

Selling on your own website and shipping direct to the consumer (DTC) without a retail middleman has benefits. First, there’s a higher profit margin at the point of sale by eliminating the retail middleman. Dealing directly with the customer also allows craft brands to respond quickly to customer needs. 

More good news is that a growing number of states allow DTC shipping. This is especially true for wineries nationwide. For breweries and distilleries, the number of states allowing DTC is less than a dozen, but that number is growing. Only two states – Mississippi and Utah – currently have a zero-tolerance policy for shipping alcohol direct to consumers in their state. 

A little research will reveal if you are in a state that allows DTC alcohol shipping, and which state allows DTC from out of state. Once you know the landscape, you can begin to explore e-commerce options that will maximize customer reach and profits.

Final Take

Selling alcohol online is easier than ever before. Any craft brand that has been asked “can you sell alcohol online?” has a growing number of ways to get their product online and to customers both in-state and out-of-state. But state laws and shipping and delivery options vary by location and even by the type of alcohol sold. So it’s important for anyone considering selling online to do their homework first. 

The answer to “can you sell alcohol online?” begins with checking with your state alcohol beverage control agency about licensing required in your state. You will need to find a delivery service or shipping service that meets your needs. And if you are shipping out-of-state, you’ll need to decide if you will use a shipping retailer or go the direct-to-consumer route. 

Are you looking for unique branding and design for your craft alcohol brand? Let’s talk!

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