If you’ve always wanted to own a bakery, don’t be put off by the prospect of operating a storefront and paying a high monthly rent. You can always go that route later if you decide it’s something you really want to do, but you can just as easily make your dream of sharing your mouth watering creations with a large number of satisfied customers a reality by starting an online bakery business.

How to Set Up an Online Baker

Beside the needs of a business plan cake bakery, there are other requirements on how to start a baking business.

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Obtain the Necessary Permits

The very first step is to ensure that your online cake business is legal. You don’t want to put in all of your time, effort, and money only to be slapped with a closure notice or a hefty fine.

To learn more about what are commonly referred to as “cottage food laws,” go to the Department of Health website for your specific state. Cottage food laws will determine whether you can make food for sale in your home or if you’ll need to set up shop somewhere else.

Once you’ve determined whether or not your online bakery can be a home based cake business (if that’s what you want), you’ll need to determine what, if any, specific licenses you’ll require. Common areas where a license or certificate is required include:

  • Food safety regulations.
  • Health and security.
  • Fire protection.
  • Advantage in sales.
  • Food preparation.
  • Catering.

Once you’ve determined which licenses are required in your state, you can work to ensure that your online bakery meets all of the requirements.

Find Your Specialty

You must, like any other business, find your niche. What distinguishes you from the hundreds of other online bakeries already available? 

When you think of how to sell pastries online, consider what you can provide potential customers that others cannot. You must have a USP (unique selling proposition) and an appealing brand. Don’t be tempted to ‘just bake’ and sell anything – instead, concentrate on your strong points. Online bakery business ideas include the following:

  • Chocolate products.
  • Vegan products.
  • Natural-ingredient products
  • Cakes for celebrations.
  • Baked goods inspired by a particular region, such as French patisseries.
  • Cupcakes business.

Remember that the niche you choose must be something you can personally provide. Prepare your home based cake business plan, stick to what you know and enjoy it. You don’t want to be trapped in a business that takes away your passion for baking – always remember why you started in the first place!

Make a Brand

Developing your brand is a critical step in starting your own online bakery. Consider your favorite bakeries and brands – what comes to mind when you hear their names? They all maybe have distinct colors, branding, and logos that set them apart from the crowd and make them easily identifiable.

Every brand is unique, and creating yours will require time and thought. Examine what you intend to offer, research the market to ensure that nothing similar to what your online bakery business plan already exists, and conduct audience research to see how their reaction to elements such as your logo, name, and color scheme.

Remember to identify your brand’s values and ethos as well. People are increasingly looking to spend their money with brands that share their values and social ideas. Perhaps you want to use all-natural ingredients, make your packaging completely recyclable, or donate a portion of your profits to charity. Whatever it is, your brand must have values.

Read also: How a Business Creates Awareness in the Market? Find Out!

Make an Online Store

How to sell bakery products online? You can set up your online bakery using a variety of ecommerce platforms that are simple to use, customizable, and offer fixed pricing plans to fit any budget. They also frequently provide extensive help and support, so you don’t need to be a technical expert to keep your store running smoothly.

Even better, most website builders allow you to use a pre-built design theme, which means you don’t have to start from scratch in terms of visuals. Among the most popular ecommerce platforms are:

Read also: Ecommerce Website is Key to Your Online Business Success

Display Your Baked Goods

After you’ve decided on a bakery business brand and created your ecommerce store, you’ll need to start filling it with baked goods. When displaying your products, they must appeal to your target market. After all, no one is going to buy a baked good that doesn’t appear to be delicious, are they?

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Fairly Price Your Baked Goods

Your price is one of the most important factors that will determine the success of your online bakery. People will find a cheaper alternative if you price your products too high, and if you price them too low, you’ll struggle to break even, let alone begin to make a profit.

When setting a price for your baked goods, make sure it is fair to both you and your customers. People don’t want to feel taken advantage of or overcharged. If they do, they will not be returning customers – but, on the other hand, you want to make sure the money you receive is fair for the time and effort you put into creating your goods.

Packaged and Shipped Your Baked Goods

When selecting the right packaging, consider what will keep your items fresh and protected while remaining cost-effective. If there is one area where you may need to invest more in baked goods than in other products, it is packaging.

It is critical to conduct research when selecting a carrier service. One of the most important factors for online bakeries will be whether or not the carrier accepts food parcels, not to mention how quickly they can do online bakery delivery. You don’t want to discover that your carrier will take weeks to deliver your parcels – especially after they’ve already been shipped! You must also decide how much you will charge for shipping your products.

Spend Money on Marketing

Marketing is essential for getting your products in front of your target audience. Some of the most important elements to include in your marketing strategy are: SEO, social media and digital marketing, and reaching a wider market in events and markets.

3 Tips Starting an Online Bakery Business

After knowing how to start your own bakery business from home, here some tips to run your business.

Offers Products to Group

Many brick-and-mortar businesses that are making the transition to the internet find success by offering products in groups rather than individually (e.g. a pack of 12 cakes, rather than an option to buy individually). This makes it simple to purchase excellent gifts for family and friends online, especially if they can be delivered to the customer. You can also think of how to start a mail order bakery business.

Creating Newsletter

Consider creating a newsletter as well. A fortnightly newsletter is an excellent way to keep subscribers up to date on your latest news and menu changes. Request that customers sign up for your newsletter during the checkout process, and entice them to do so by providing exclusive discount codes and coupons.

User-Friendly Website

When taking your bakery online, keep in mind that a user-friendly website is essential. You don’t want to disappoint your current customers by having a difficult, convoluted website when they’re used to being able to walk up and grab a cupcake with ease.

Rather than getting bogged down in web design, focus on creating an easy-to-use ecommerce page that displays products, accepts payments, and assists you in inventory management. 


If you want to start a home baking business, there are a few rules and regulations you should be aware of before you start investing. After you’ve resolved all legal issues, you should conduct market research and identify your company’s niche. This article will help you through the opening process of your new home bakery.

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