Direct-to-Consumer (DTC) shipping is the process of shipping your eCommerce orders directly to the consumer from your facility, rather than through a 3rd-party distribution channel. There are many things to consider when shipping DTC, including shipping logistics, alcohol compliance, pricing, and more. Use this guide for some general information and recommendations for DTC shipping from your Arryved Web Solutions Shop.
You have an Arryved Web Solutions Shop.
You must have a Direct Shipper License for each state you intend to ship beer to. Check out this Ship Compliant guide for more information.
Arryved Web Solutions supports alcohol shipping, however, we are not responsible for your compliance. Although this guide has a few best practices to recommend, we strongly encourage you to consult a tax or legal professional before rolling out a new shipping plan.
Your Arryved Web Solutions Shop can restrict where you ship DTC, but it cannot restrict shipping by product or quantity. Keep this in mind when choosing which state to ship to, some may have restrictions on what you can ship and how much.
Shipping alcohol in the U.S. comes with its own compliance and logistical challenges. We encourage you to consult a tax and legal professional to ensure your shipping program is compliant. Below are some recommendations from us on some things to consider:
Decide which states to ship to: Not all states allow DTC alcohol shipping, and within the ones that do, there are varying laws and regulations.
Keep in mind, your Arryved Web Solutions Shop can restrict where you send alcohol to, but cannot restrict which brands, types, or quantities are shipped.
Licensing: You need a Direct Shipper License for each state you intend to ship beer to.
Shipping Carrier: If you’re shipping alcohol, you need to choose a shipping carrier that supports it. Currently, UPS is the only national carrier that reliably ships alcohol. However, GLS is available if you are only shipping alcohol within California.
Check out this Ship Compliant guide to help you with these recommendations, and remember to consult a legal professional.
Pick a shipping carrier that works best for you. Remember, if you’re shipping alcohol, stick to UPS. We advise you to open a business account with the shipping carrier and begin working with a dedicated representative to go over these topics:
Which states you can or plan to ship to.
Negotiated rates for using the carrier.
Signing an agreement/contract establishing these details.
When it comes time to connect your shipping plan with your Arryved Web Solutions Shop, you’ll use your account number to pull to make the connection and pull in your negotiated rates.
If you’re not too familiar with shipping processes, more logistics go into it than you might think. You have to consider:
Shipping rates
Purchasing and printing shipping labels
Keeping track of shipments
Customer tracking
Notifications
Returns
This can all be done manually on your shipping carriers’ website, but it could be a tedious and time-consuming process if you don’t have a dedicated shipping manager.
ShipStation is a shipping and fulfillment solution that can take these tedious tasks off your plate. And, it integrates seamlessly with your Web Solutions Shop.
To connect your carrier's negotiated rates to ShipStation, you’ll need a recent invoice. We recommend creating one test shipment directly through the UPS website using your account so an invoice can be generated as soon as possible.
Though not a requirement, we recommend purchasing a shipping label printer.
Think about what you’ll be shipping and consider what packaging you’ll need. Are you shipping cans, bottles, merch, all of it?
Considering a small, medium and/or large box size to handle all of your shipping needs. We tend to see the sweet spot for shipping rates to be a box that can hold up to 3 or 4 x 4-packs, with some room to squeeze a shirt or a hat in.
We like Whale Pod shippers for good quality and competitive prices.
Use poly-mailers, typically 9x13, which can fit lighter-weight orders of just merch such as t-shirts, hoodies, stickers, etc.
Direct-to-Consumer taxes vary state by state. Check out this Ship Compliant guide for some State-specific tax information on beer shipping, and remember to consult a tax professional.
Many states require you to remit taxes if you have Economic Nexus in that state. This could include:
A physical presence (e.g., where your taproom is located).
A minimum dollar amount sold to customers in the state within a time range.
A minimum amount of orders shipped to the state within a time range.
A combination of the last two
Check out this guide on Economic Nexus laws for each state.
Consider what you want to charge your customers for shipping:
Flat Rate: Choose one rate for all shipments. Try to calculate a fair average based on the products you have available to ship and your average weight and volume.
Shipping Calculator: Offer varying shipping costs based on weight and volume. Weight and Volume measurements must be applied to all shippable products in your Shop. If even one item in the consumer’s cart is missing measurements, then the calculator can’t be used.
Connect your Web Solutions Shop: Make sure to connect your shipping carrier and your fulfillment manager with your Arryved Web Solutions Shop. Ask a representative what you need to do. We have some instructions for ShipStation
Soft Launch: We recommend “soft-launching” your shipping so you can work through the details and refine the fulfillment process. You could start by shipping to a limited area or single state, keeping the initial marketing promotions to a controlled minimum until you are ready for the full launch.
Dedicated Shipping Manager: You will also need to think about who on your team will be handling this. A dedicated team member (or members) is needed to monitor orders, package them up, print the labels, and ensure they are either dropped off at a UPS hub for shipping or a UPS pickup is scheduled.
Contact web-solutions-support@arryved.com if you want some assistance rolling out your shipping plan or connecting your Web Solutions Shop. We’re here to help, but remember, we are not tax and legal experts.