Business Idea

Start A Tea Business

About

Starting a tea business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell tea, or selling tea online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a tea business ➜

Key stats

market size
$14B
revenue (monthly)
$158K
starting costs
$62.1K
gross margin
60%
avg product price
$3
time to build
10 months
growth
Email marketing
business model
E-Commerce
time investment
Side project

About

Starting a tea business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell tea, or selling tea online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a tea business ➜

Key stats

market size
$14B
revenue (monthly)
$158K
starting costs
$62.1K
gross margin
60%
avg product price
$3

 

time to build
10 months
growth
Email marketing
business model
E-Commerce
time investment
Side project

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Employee & Freelancer Expenses $151 $252
Equipment & Supply Expenses $566 $5,700
Website Costs $303 $7,215
Business Formation Fees $5,600 $20,400
Retail Business Expenses $1,250 $11,650
Inventory Expenses $350 $14,750
Food Business Expenses $2,125 $36,000
Software Expenses $12 $1,094
Advertising & Marketing Costs $75 $5,286
Other Expenses $0 $800

Successful Businesses

Business URL Rank
DAVIDsTEA davidstea.com #50,925
Adagio Teas adagio.com #72,015
The Republic of Tea republicoftea.com #108,973
T2 Tea t2tea.com #110,781
Matcha.com matcha.com #144,775
The Tea Spot theteaspot.com #169,337
Sencha Tea Bar senchateabar.com #175,105
Tea and Whisk teaandwhisk.com #182,782
Numi Organic Tea numitea.com #222,934
Bigelow Tea bigelowtea.com #224,921
Spice and Tea Exchange spiceandtea.com #225,194

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Meaningful business connections You never know who you will meet as a tea business. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Easy to encourage "impulse buy" In the tea business, you have a much higher chance of encouraging your customers to buy on impulse - you can easily alter the price, placement, packaging, and promotional value to influence the decision of your buyer.
Unlimited income potential With starting a tea business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.
Amazing perks and discounts Working in the tea business comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A tea business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Low margins The gross margins for your tea business are typically around 60%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover In the tea business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes As a tea business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
High overhead expenses With starting a tea business, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

Marketing Ideas

  • 1

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

    Learn more about social media advertising ➜