Knowledge Base

Ask the Collective

The questions independent drinks founders ask most — answered. Distilled from years of community knowledge so the good stuff never disappears in the feed again.

Regulation & Compliance14 discussions

What licenses do you need to sell alcohol online direct to consumers in the UK?

The licensing requirements for online alcohol sales are complex and interpretation varies by local authority, so it's essential to speak directly with your local licensing team and HMRC. **Key points members have confirmed:** - **Premises license** — Required if you're selling alcohol online from your own premises (e.g. office or home). If you're using a warehouse or distribution partner with their own premises license, you may not need one yourself, but this is a grey area open to local interpretation. Some local authorities insist you need a 24-hour premises license for round-the-clock online sales; others take a different view. The premises license is typically tied to where payment is taken (your website), not where stock is held. - **Personal license** — Conflicting advice here. HMRC told one member you don't need a personal license for D2C online sales (the Wine & Spirits Trade Association confirmed this). However, others report being told by HMRC that a personal license *is* required for online sales and events. This appears to vary by region and HMRC officer interpretation. - **AWRS (Alcohol Wholesale Registration Scheme)** — One member clarified this is for selling to the trade only, not D2C. - **Age verification** — If you hold a premises license, age verification on your website (e.g. the "are you 18?" check) counts as your side of age verification; the delivery company is then responsible for checking age on receipt. **Recommended approach:** - Speak directly to **HMRC** and your local licensing authority before launch — don't rely on online information or other businesses' experiences, as interpretation varies significantly by area (e.g. Brighton and London have reportedly different requirements). - The **Wine & Spirits Trade Association (WSTA)** was recommended by members as a reliable source of guidance. - If using a warehouse or third-party distributor, confirm they hold their own premises license. **Caveat:** Members reported significant confusion and conflicting information across the industry. Local authority interpretation appears to be the deciding factor.

#licensing#online-sales#d2c#compliance
Route to Market3 discussions

What is the typical sales ratio between Amazon and specialty online retailers like Whiskey Exchange?

Members shared mixed ratios depending on their scale and product positioning. Amazon typically dominates online channel sales, but the specific ratio varies: - **Amazon vs Whiskey Exchange (TWE)**: One member reported TWE at approximately 5% of their Amazon sales volume - **Amazon vs broader specialty trade**: Another member noted Amazon is roughly 4–5 times larger than their combined specialty retailer sales **Important caveat**: Members acknowledged difficulty in accurately segmenting and tracking sales data across channels, particularly distinguishing between different specialty retailers. The ratios are heavily dependent on brand size, product positioning, and how effectively you're distributed across specialty channels. One member noted that much of the online volume spike came during lockdown periods. **Commission consideration**: Members also flagged that specialty retailers charge significant commissions (25–35%), which can make smaller volume partnerships unprofitable even with promotional support.

#online-sales#amazon#specialty-retailers#sales-channels