Ok. I finally have my food handler's license and through word of mouth people are calling me to make birthday, baby shower, and sweet 16 cakes. I'm ready to branch out and find a commercial kitchen in order to sell in my area because my home kitchen doesn't qualify to be utilized for business.
I'm thinking about selling online and shipping cupcakes, etc., but wondered if anyone has sold their products online and been successful. I know that I'll need a business license and liability insurance, but need to know if selling online will be profitable enough to pay for the insurance and rent of a commercial kitchen.
Has anyone found success in this venture? What are the pros and cons?
Packaging and shipping cupcakes so they arrive at their destination without losing quality is difficult and expensive. I recommend pricing out how much you would need to charge to cover shipping costs and still make a profit, then see if that price makes sense in any of the markets you are targeted. If so, you would also need to give customers a good reason to order from you and pay the extra shipping cost instead of buying locally.
Thank you, Jason. I appreciate your help.
You must have an FDA licensed kitchen. A commercial kitchen should pass, but you have to talk to them. Along with that license comes a long list of requirements, some costly. Your state Dept of Ag has the application. Because of the costs associated with shipping, what Jason covered, it usually is only done by bakeries that are established and can afford the costs of custom packaging in large quantities.
Thanks for the great info. I definately have a lot to consider.
I have these links about the subject.