My idea to start an online food business... what do you think?

31 replies
First off: please be honest and be brutal. Id rather know if Im going to be making a big mistake than to be told positive things and end up driving off a cliff.

So I LOVE food and I have this idea that I want to resell other stores snacks and gifts through my website. Texas food laws don't allow me to cooking anything and sell online, so I just want to sell other stores foods.

I set up a woo commerce store with a good name. I was thinking I would just go to specialty stores, local stores and buy their great products and mark them up and resell on my website.

Could this work or would this be a disaster?

Im in Dallas and maybe theres some specialty BBQ or other local things here people can't buy anywhere else.
thoughts?
#business #food #idea #online #start
  • Profile picture of the author Steve B
    Originally Posted by ecomguy View Post

    I have this idea that I want to resell other stores snacks and gifts through my website. I would just go to specialty stores, local stores and buy their great products and mark them up and resell on my website.

    Let me ask you, if you're buying local products at retail, then marking them up to resell on your website, how are you going to turn a profit? Who is going to want to buy food that is sold online and "marked up"? People shop online to buy things at a discount rather than paying more for them.

    Another problem . . . food is perishable. What are you going to do if something doesn't sell?

    No offense, but personally I think you'd better re-think your idea.

    Steve
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    • Profile picture of the author ecomguy
      Originally Posted by Steve B View Post

      Let me ask you, if you're buying local products at retail, then marking them up to resell on your website, how are you going to turn a profit? Who is going to want to buy food that is sold online and "marked up"? People shop online to buy things at a discount rather than paying more for them.

      Another problem . . . food is perishable. What are you going to do if something doesn't sell?

      No offense, but personally I think you'd better re-think your idea.

      Steve
      Thank you very much for feedback.
      1. My thinking is that I wont be turning any profit at first fact I'll lose a small amount of money in the beginning as many food businesses do.
      But once I start to grow a small following and small but consistent sales then I can start to contact wholesalers and buy direct from them.

      2. I would only buy the initial food so I can take nice photos of them for the website. But I wouldnt buy any more product until an order comes in. Once an order comes in, I go to the stores, buy them, put them together nicely, then ship them out. But I dont keep any on stock or on a shelf.

      Thats the only reason I dont like food is it goes bad, so for that reason I only buy it one an order comes in.

      Its a slow and tedious process but its just to start out. I figure after a few years a lot more orders will come in and I can crank it up more.
      just my thoughts
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  • Profile picture of the author eugenedm
    Well I think eventually somebody will figure it out! You should try it....

    I'm super optimistic about this... I like healthy food myself... and I like "raw"

    Of course you would buy it wholesale... Like wholefoods does it...

    But I think you might need some investment... Try to raise it like on kickstarter or Google campus or Silicon Valley...

    But first...... You gotta to believe that you can do it... and then you will be unstoppable...

    I teach my students to be "unstoppable" and I think if you really "want" it you will get it done!

    Good luck, brother!
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    • Profile picture of the author ecomguy
      Originally Posted by eugenedm View Post

      Well I think eventually somebody will figure it out! You should try it....

      I'm super optimistic about this... I like healthy food myself... and I like "raw"

      Of course you would buy it wholesale... Like wholefoods does it...

      But I think you might need some investment... Try to raise it like on kickstarter or Google campus or Silicon Valley...

      But first...... You gotta to believe that you can do it... and then you will be unstoppable...

      I teach my students to be "unstoppable" and I think if you really "want" it you will get it done!

      Good luck, brother!
      Thanks very much. I myself am diabetic so was going to offer many sugar free and 'Paleo" foods.
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  • Profile picture of the author fasteasysuccess
    Me personally if was going to do what you want to do, you'd be better off doing localized at start, then drop ship when ordered from retailer or shop have deal with. This way food fresh-you don't mess with delivery and people get what want.

    There's actually tons of ways to make it work but like said if goign that route you wanted to go, would suggest my tip because you're not wasting food, siiting on inventory eating all your profits and may have way less to do.

    I would take what I said and think bigger, but definitely make it more than about the snacks...
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    • Profile picture of the author ecomguy
      Originally Posted by fasteasysuccess View Post

      Me personally if was going to do what you want to do, you'd be better off doing localized at start, then drop ship when ordered from retailer or shop have deal with. This way food fresh-you don't mess with delivery and people get what want.

      There's actually tons of ways to make it work but like said if goign that route you wanted to go, would suggest my tip because you're not wasting food, siiting on inventory eating all your profits and may have way less to do.

      I would take what I said and think bigger, but definitely make it more than about the snacks...
      Thanks im real glad to read that as it's along the same lines as I had in mind. Appreciate it so much.
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  • Profile picture of the author Mark Singletary
    You'll be losing a lot more than "a small amount of money in the beginning" if you mean that you are going to pay for a website, take my order for a Little Debbie oatmeal pie, drive to the store to buy it, drive back home, box it up, drive to the PO to ship it, and then drive back home.

    I admire anyone that has plans and desire to improve themselves. I can even see the excitement to get something like this started. But, in my opinion, you really need to take Steve's advice and rethink this whole thing.

    Mark
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    • Profile picture of the author ecomguy
      Originally Posted by Mark Singletary View Post

      You'll be losing a lot more than "a small amount of money in the beginning" if you mean that you are going to pay for a website, take my order for a Little Debbie oatmeal pie, drive to the store to buy it, drive back home, box it up, drive to the PO to ship it, and then drive back home.
      Great advice and something I didn't think about. You're 100% right, I'm not going to run around town for $3.

      It would have to be a minimum order, say $15 or $20 to order which seems reasonable to me. So someone would have to order 5 boxes of Little Debbie's or the order wont go through. I'll lose some sales in quantity but will make it up in quality sales.

      And the websites already done with WP and Woocommerce and a good store template I had lying around. If it starts making money and sales are consistent then I'll upgrade to a Shopify account.

      thanks this is a good mental exercise for me to flesh it out with online professionals.
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      • Profile picture of the author OnlineStoreHelp
        Doing a food business can work. But again, what is your niche or theme? If it is to buy what ever people want, you can do that from Amazon.com already. But, if you were to find a theme or niche, for example..

        Beef jerky, discount deals

        Now that might work very well for you. The other route, is to sell things that you can't get outside of Texas so that those who have moved away, can still order from you. You want to see a magnificent failure in the grocery delivery business, look up pea pod and its failure...
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        • Profile picture of the author Joan Altz
          Originally Posted by OnlineStoreHelp View Post

          Doing a food business can work. But again, what is your niche or theme? If it is to buy what ever people want, you can do that from Amazon.com already. But, if you were to find a theme or niche, for example..

          Beef jerky, discount deals

          Now that might work very well for you. The other route, is to sell things that you can't get outside of Texas so that those who have moved away, can still order from you. You want to see a magnificent failure in the grocery delivery business, look up pea pod and its failure...
          This is the best advice from OnlineStoreHelp.

          Also, retail prices are different in different locations...

          When I lived in Oklahoma with my husband, we were living close to OKC. One time we were staying a few days in Shawnee, about 40 miles away, and we were shocked that the local Walmart had prices that were double and even triple the prices of the OKC Walmart for a lot of products.

          Turns out that Walmart could get away with those prices because they had no competition in Shawnee. Residents there had no other options.

          I stayed a few weeks in Beatty, Nevada about 9 years ago and the residents there had to travel over 75 miles to get to the nearest grocery store in Pahrump. Beatty had a casino, but no grocery store. lol. And they had one guy who owned a large van who charged people to do their grocery shopping for them in Pahrump. It was a good gig for that guy and people paid his fee for the convenience. They probably would have been open to something like what you are thinking about doing, at least back then.

          Having said that, I'm with these guys who are telling you to do something else. There are a lot better ways to make money online. You can try it if you want, however, just for the experience, and you'll learn some things in the process that you can use later...maybe for a related, but new method of operation in the food business.
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  • Profile picture of the author Mark Singletary
    What if your local Walmart or wherever you plan to buy these things doesn't have 5 boxes in stock?

    Mark
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  • Profile picture of the author DIABL0
    I think it's one of the worst idea's I have ever heard of...paying retail???

    I was recently ask to promote this on a CPA basis and I wasn't interested, but I like it better than your idea. https://www.graze.com They provide custom snack boxes, based on the snacks they provide.
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  • Profile picture of the author Randall Magwood
    Seems like alot of work, for a probably miserable pay. If you're willing to do all of this to make money at home... you should start an ebay business. You'll get sales faster, and you'll have to drive down to the post office everyday to ship orders... but i assure you that it will be less work (and hassle) ... (and more profitable) than your online food business idea.
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    • Profile picture of the author ecomguy
      Originally Posted by OnlineStoreHelp View Post


      Beef jerky, discount deals

      Now that might work very well for you. The other route, is to sell things that you can't get outside of Texas so that those who have moved away, can still order from you.
      That is a good idea, thanks. And yeah I remember Webvan, and I think Boo or something back then. That is a very good point. I need to rethink my theme.

      Originally Posted by DIABL0 View Post

      paying retail???
      At first to test proof of concept. Then once there are sales move over to light bulk.

      Originally Posted by DIABL0 View Post

      I was recently ask to promote this on a CPA basis and I wasn't interested, but I like it better than your idea. https://www.graze.com They provide custom snack boxes, based on the snacks they provide.
      That is a good idea, but I couldnt afford to start that, that takes a lot of investment to get going


      Originally Posted by Randall Magwood View Post

      Seems like alot of work, for a probably miserable pay. If you're willing to do all of this to make money at home... you should start an ebay business. You'll get sales faster, and you'll have to drive down to the post office everyday to ship orders... but i assure you that it will be less work (and hassle) ... (and more profitable) than your online food business idea.
      Probably right. I would offer my gift boxes and baskets on ebay and etsy to drum up business. Appreciate the feedback. Im hesitant about food too but I really dont like re-selling shirts or trinkets from thrift stores.

      I been struggling for a long time so just trying to get some kind of idea going.
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      • Profile picture of the author BigFrank
        Banned
        Worst idea I have ever heard. Food businesses that have product worth selling online, already do so. This is just so bad on so many levels that I'm not even going to get into it.

        Anyone that tells you this is a good idea is not worth listening to. They are nuts. lol

        Cheers. - Frank

        P.S. Oh, wait. I forgot one thing. If you believe you can do it, then obviously it will be a great success. Just ignore everything I have said. What the hell do I know?
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  • Profile picture of the author Mark Singletary
    If you insist on selling food against everyone's advice which you asked for, maybe you should look into dropshipping as an alternative. Here's an example (just the first hit on Google - don't know these guys from Adam) Dropship organic food and dropship gluten free products with Bangalla Organic

    Mark
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    • Profile picture of the author ecomguy
      Originally Posted by Mark Singletary View Post

      If you insist on selling food against everyone's advice which you asked for
      It's not that I'm being stubborn, I just don't know what else to sell that I can talk about.
      Whatever it is I do I plan on going on yt/pin/ig/fb/tw and showing the products (a new one everyday) and talking about it. Building an audience. Like the ladies do with their hair styles and makeup tutorials on YT.

      I could make a store selling camping gear, but I dont know the first thing about camping, so I dont know how to talk about it. Same with Golf clubs, dog toys or cell phone cases. I dont know what Im talking about so it will be hard to market.
      Thats my block is finding something I like that I can build a big party and sell a product too.
      Food came up cuz I love food. Im open to other things but nothing is ringing my bell.

      Originally Posted by Mark Singletary View Post

      maybe you should look into dropshipping as an alternative. Here's an example (just the first hit on Google - don't know these guys from Adam) Dropship organic food and dropship gluten free products with Bangalla Organic
      Great advice, I have gift basket and food drop shippers lined up. Just got my LLC & taxID so I can sign with them. Just checking first to see what people thought of it before I jump in.
      The site I made has a Gluten Free section and Im adding Sugar Free products this weekend. Im diabetic so I myself want low carb sugar free snacks myself.

      This feedback is showing me that if I want to go this route Im going to really need to specialize in something people need and have a hard time finding like glutenfree, sugar free, paleo, etc. I appreciate the great feedback, it helps me
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  • Profile picture of the author DIABL0
    I mainly generate leads. So it's not like you have to sell anything to make money online.
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    • Profile picture of the author JohnMcCabe
      Originally Posted by ecomguy View Post

      Great advice and something I didn't think about. You're 100% right, I'm not going to run around town for $3.

      It would have to be a minimum order, say $15 or $20 to order which seems reasonable to me. So someone would have to order 5 boxes of Little Debbie's or the order wont go through. I'll lose some sales in quantity but will make it up in quality sales.

      And the websites already done with WP and Woocommerce and a good store template I had lying around. If it starts making money and sales are consistent then I'll upgrade to a Shopify account.

      thanks this is a good mental exercise for me to flesh it out with online professionals.
      If people want to order 5 boxes of Little Debbies, why won't they just order (at a discount) from Amazon?

      There are a couple of ways to go about this.

      One, you would need to find a niche item and work a discount or dropship deal with them. Can't remember the name, but a while back I read about a company that sells lobsters online. Their gimmick was that rather than buying "lobsters", you bought the output from a specific trap from a specific lobsterman. I also know of small farmers that sell meat and produce custom raised (usually grass-fed, organic, etc.)

      In both cases, the specialty nature of the offer allows for bigger markups as well as getting paid in advance. If you could work out a commission deal (either on a per-sale or per-lead basis), you might do very well

      The other way is to not sell food, sell "buying and shipping food" as a service. My brother works insane hours, so he pays for having his groceries delivered to his door. He fills out the order form, they ding his credit card, and at an agreed on time, the food shows up at the door. If you found multiple related niche products, you could try to set up a "X of the month" continuity program, or a Pantry Restocking service where people could select a basket of items, and you would periodically ship them.

      Your basic idea could work, but the form you posted is a recipe for disaster.
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  • Profile picture of the author Adrian112
    You have to make it authority first.
    People will more likely buy some things on Ebay or Amazon if that things are at same price there
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  • Profile picture of the author Jack107
    Abort mission!

    Just to throw my 2 cents in you need to seriously reconsider this idea. People have given some good ideas on what you can do differently, but for the effort you are going to for little to no profits is mad!

    What I don't understand about the idea is why would someone buy from your online store (which then includes postage) when they could just go down to the store and get the same product cheaper?

    The fact you are eager and ready to get something started is fantastic, and getting started is always the toughest part. Tweak your ideas a little and I'm sure you'll do well!

    Good luck.
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  • Profile picture of the author amuro
    Originally Posted by ecomguy View Post

    First off: please be honest and be brutal. Id rather know if Im going to be making a big mistake than to be told positive things and end up driving off a cliff.

    So I LOVE food and I have this idea that I want to resell other stores snacks and gifts through my website. Texas food laws don't allow me to cooking anything and sell online, so I just want to sell other stores foods.

    I set up a woo commerce store with a good name. I was thinking I would just go to specialty stores, local stores and buy their great products and mark them up and resell on my website.

    Could this work or would this be a disaster?

    Im in Dallas and maybe theres some specialty BBQ or other local things here people can't buy anywhere else.
    thoughts?
    You can go to sites like Cooking and Foodtube.

    Cooking is an online marketplace like Clickbank. There are hundreds of thosuands of recipes and cooking equipment you can research and get ideas from.

    You can also check out Foodtube. It is very much like Youtube but ONLY for food.

    I may also want to set up a site on food.

    On my local S'porean food which makes our country an eating paradise for everybody.

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  • Profile picture of the author agmccall
    If you really want to go this route, I would consider getting approved to sell grocery on amazon then start sourcing unique food products or bundling. Jessica Larrew has a info product for selling groceries on amazon.

    al
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    • Profile picture of the author LesterRussell
      I'm personally a food lover myself too so I've had thoughts of my own on how i could make a business on the internet to retail food.

      I think the biggest challenges you are facing for this would be the fact that orders come in slow at the start and stocking up on perishable food could result in huge losses if you can't sell them off fast enough.

      Some ideas i had to counter this problem were to find people to collaborate with. This way, you can help retail their products which they have used their own money to stock up on. I'm pretty sure they would face the same dilemma of wanting to clear off their stock before expiry so I don't see any reason why they would reject you as long as you don't undercut their prices.
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      • Profile picture of the author Jill Carpenter
        Originally Posted by Steve B View Post

        Let me ask you, if you're buying local products at retail, then marking them up to resell on your website, how are you going to turn a profit? Who is going to want to buy food that is sold online and "marked up"?
        That would be me

        I live in remote location. There is junk food not sold here that I would gladly pay xtra for. Just ordered dip mix I can't get here and paid more than it would cost in the store. No cheaper solutions.

        I think to make this work you need to build a strong customer base/email thing and research what is not easy to get online.

        So my answer is go for it! But be sure to try to economize shipping as much as possible.
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  • Profile picture of the author Steve B
    Originally Posted by ecomguy View Post

    First off: please be honest and be brutal. Id rather know if Im going to be making a big mistake than to be told positive things and end up driving off a cliff.

    Ecomguy,

    Nothing personal here, just trying to help and save you from making that "big mistake" you're worried about.

    All smart online business owners begin with market research to see what kind of demand there is in the marketplace for their business. Have you done that yet? Have you verified that there is sufficient demand out there to warrant starting a business in the food niche you're choosing?

    You won't create demand. It's either in the marketplace or it isn't. Unless you're the 900 lb gorilla, like Amazon or Ebay or Apple, you're not going to have the budget or branding power to create sufficient demand for your business. So it better be in the marketplace already.

    If you don't understand who you prime prospects are and where they are, and have verified through research that indeed they are asking for exactly what you're going to offer, then you're building your business on a foundation of sand.

    An ounce of prevention . . . well, you know the saying.

    Steve
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  • Profile picture of the author startefl
    I think Steve is DEAD right.

    I've fallen in the trap myself of analyzing it and deciding it's a GREAT idea, without asking my target market what they think.

    I run an online course in a specific niche that I'm an expert in. About 4 years ago, I launched a 'virtual' course. In other words, I launched something similar to a course via Google Hangouts. For those I got to purchase, they loved it. I mean really loved it. I had some people, dropping the kids off at soccer practice whilst following me, it was a really convenient and fun way to deliver this type of course.

    The problem is.... it was at the earlier adopter stage. In other words, most people didn't want to do it because it's 'new' and they don't like to try something new, the like to wait for others to do it first, and THEN do it. Most people are followers.

    My niche just wasn't big enough to run courses on early adopters. I could have known this if I had done some research! But I didn't, I just thought it sounded like a pretty cool idea and ran with it.

    So, as is life, I took my eye off the ball, started focusing on something else, 12 months later my competitor is killing it using this format. Now it's standard of course, as everyone uses webinars to deliver information. But my competitor is 'well known' for it.

    So from my own experience.... DO SOME RESEARCH... find some forums where you ask people, please do before you sink any time or money into it.

    Hope that helps.
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    • Profile picture of the author Kay King
      I think you've made a very common newbie mistake.

      You have become emotionally attached to your idea. The more you think about it - the better it sounds. This crowds out the more practical elements of the decision.

      The only way to get past this idea may be to try it. There are food sites that feature specialty items such as salts-of-the-earth - often customers arrive after trying the products are various food shows or food market booths.

      The "stuff from Texas" idea might be a good one - not sure how profitable it is but check out this one

      Texas Food - Texas Made Foods & Texas Gifts

      It's possible you can refine your idea to create a theme that could get traction but the "buy retail and then sell online" is not a workable idea.


      You won't create demand. It's either in the marketplace or it isn't.
      Truth that!
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      • Profile picture of the author Dave777
        Lots of Smart advice throughout this thread...

        Although, Always keep a very open mind...

        You just Never know, with a Good ol' Twist of ideas and a few other Creative ways of doing Things differently than most...

        Out comes All kinds of endless other Specialized, Niche opportunities and possibilities...

        Well worth Digging around into Google and other Smart web related resources & connections...
        SPI 148: (By Popular Demand) The Story Behind The Success of Food Blog Pinch of Yum, with Lindsay and Bjork...

        (By Popular Demand) The Story Behind The Success of Food Blog Pinch of Yum, with Lindsay and Bjork

        All the best,
        Dave
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  • Profile picture of the author MMartin89
    Can't predict beforehand if this will be a disaster but do you think you will get enough margin on these things to make a living?
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  • Profile picture of the author RaymondPreble
    I think one of the initial hurdles that you might face would be, you would have to push great volume to make something substantial so you would have to shell out pretty good pesos for marketing!
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