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In the last few years, e-commerce has experienced exponential growth. This is especially so since the pandemic hit. Although the world seems poised to return to a pre-pandemic state of normalcy, a few new trends are here to stay. One of these is e-commerce. In short, entrepreneurs and buyers alike will undoubtedly continue selling and buying online, and increasingly so. If you enjoy baking, why not consider making money from it? Selling baked goods online is easier than you think. If you're wondering how, read on. We'll show you how to make money selling baked goods from home.
The first step when you're learning how to sell baked goods online is to inform yourself of the relevant rules and regulations. If you’re wondering, “Do you need a license to sell baked goods from home?” the short answer is, “it depends.” Since different states have different requirements, your location will be a deciding factor. To help you get started, here are a few facts to consider:
Cottage food laws enable small-scale entrepreneurs — who, in this context, are called cottage-food producers — to sell low-risk food, including baked goods, from their homes and other places such as farmer’s markets, roadside stands, and flea markets. With a cottage food operation permit, you’re also allowed to deliver baked goods to your customers’ homes. In addition, many states also allow the online sales of low-risk food products with this permit.
However, you'll be limited by a restriction on the amount of gross annual sales permitted under this permit, which differs from state to state. In New Jersey, for instance, home bakers can sell up to $50,000’s worth of goods annually, whereas they're allowed a maximum of $75,000 in gross annual sales in a state such as Oklahoma.
Since each state has its own laws and regulations, you’ll need to check out what your state does or doesn’t allow. In the event that your state doesn’t allow for online sales of foods under the cottage food operation permit, or that your sales start to eclipse the cap your state has instated, you’ll need to create a commercial business enterprise and use a commercial kitchen.
However, if you’re allowed to sell online with a cottage food operation permit in your state, you may need additional certificates and permits. Some states, for instance, require food handling certificates. To obtain this certificate, you’ll have to take a small course, which covers things like food handling, food sanitation, packaging, and storing food.
You may also need to get a license and permit at a state level, as well as business licensing or other permits at a local level. This means that, apart from your state laws, you’ll also need to check out the laws and regulations of the county or city you’re living in.
Apart from obtaining the necessary licenses and permits, there are other things you need to consider when you’re selling homemade food online. Here are a few tips to remember:
Although things like licenses, permits, and an online presence are all super important, everything ultimately hinges on the baked goods you’re going to produce. The first thing you need to consider is what type of baked goods you’re planning to sell. Create a menu of recipes that you’d like to bake. Luckily, baked goods are typically not considered high-risk food. Although they contain dairy and eggs, baked goods have been baked at a high temperature and typically don’t require refrigeration.
This means that you have a wide choice. Think cakes, cookies, chocolate pretzel rods, croissants, scones, muffins, brownies, fudge, breads, biscotti — the list goes on and on. You can even look at baking dog treats. To be on the safe side, just be sure to not add perishable items, such as meats, to your recipes.
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