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)
$61.3K
starting costs
$62.1K
gross margin
60%
avg product price
$3
time to build
10 months
growth
Direct sales
business model
E-Commerce
time investment
Full time

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)
$61.3K
starting costs
$62.1K
gross margin
60%
avg product price
$3

 

time to build
10 months
growth
Direct sales
business model
E-Commerce
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $35 $3,250
Employee & Freelancer Expenses $0 $5,000
Equipment & Supply Expenses $550 $6,000
Website Costs $232 $6,500
Business Formation Fees $5,600 $20,400
Retail Business Expenses $0 $16,150
Inventory Expenses $350 $14,750
Food Business Expenses $2,125 $36,000
Software Expenses $0 $1,044
Advertising & Marketing Costs $75 $5,286
Other Expenses $0 $800

Successful Businesses

Business URL Rank
NING ning.com #3,630
DAVIDsTEA davidstea.com #50,925
Large-Scale Assessment schoolnet.com #61,684
Adagio Teas adagio.com #72,015
Education Service Center Region 11 / Education Service Center Region 11 esc11.net #102,692
The Republic of Tea republicoftea.com #108,973
T2 Tea t2tea.com #110,781
All About The Tea allaboutthetea.com #140,200
Matcha.com matcha.com #144,775
Halekulani halekulani.com #160,999
The Tea Spot theteaspot.com #169,337

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

    Word of mouth

    The most tried and true way to grow a tea business is through word of mouth - some entrepreneurs would say it's more important than all social media.

  • 2

    Advertising on social media

    Social media advertising is one of the leading ways to get the word out when it comes to tea business.

    There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

    Learn more about advertising on social media ➜

  • 3

    Pay Per Click Advertising

    Pay-per-click (PPC) is a performance-based marketing method that allows you to show specific ads for services or products oriented to a very defined target, with the goal that the user visits your website or landing page.