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Loose Tea in the American Marketplace - Opportunities for Affiliates
By Jon M. Stout
The American tea market
Traditionally, the marketplace for tea drinkers in the United States has been limited.
Although loose tea was extremely popular in colonial times, the
consumption of loose tea gradually changed and recently the American
market for tea has been generally confined to iced tea and tea in bags.
Loose tea was introduced to America at the same time of introduction to
Europe. As early as 1650 Dutch traders were active in the tea trade and
Peter Stuyvesant, as an early governor of the New York colony, brought
the first tea to New York. Loose tea was so popular in colonial New
York that at one time the small colony consumed more loose tea than all
of England. This popularity was equally evident in the other colonies.
Gradually however, the American tea market changed. America made two
unique contributions to the tea world in the form of iced tea and the
tea bag and both were invented in the early 1900’s. Presently, 80% of
the tea consumed in the United States is iced tea and of the remaining
20% of tea consumption, most is consumed in the form of bagged tea.
There is growing resurgence of demand for loose tea in the United
States however, driven by a greater awareness of the health benefits
and quality of the loose tea experience. As demand increases, new
opportunities arise for the entrepreneur who wishes to market and sell
loose tea.
How do loose tea and tea bags compare?
Most experts compare loose tea and tea in bags in four ways:
1. Most of the tea that goes into bags in not high quality. Tea bags
usually contain broken grades so infusion takes place quickly
2. Whole leaf loose teas come in a larger number of varieties than
bagged tea and some higher quality teas are only found in loose
offerings
3. Bags are semi-nonbiodegradable additions to biodegradable tea leaves with implications for the environment
4. Generally speaking, tea bags offer greater convenience although
e-commerce now offers tea drinkers the convenience of on line ordering
and home delivery
Is loose tea more costly than tea bags?
Many advocates of bagged tea in believe that loose tea costs more than
tea in bags. Actually, most good tea is not very expensive and can be
very cost effective. When you buy tea in bags, most of what you pay for
is the process of putting the teas in the bags, and the brand name
advertising. Fancy tea is generally sold loose, and the price per cup
is often lower than for commercial bagged tea.
Some truly fine teas retail in the United States retail for less than
US$20 per pound, which means less than 10 cents per cup. When one
considers that most loose teas support multiple infusions the prices
drop dramatically.
High
quality loose leaf tea is typically not available in supermarkets; but
a good mail order web site will accept and process orders rapidly and
offer the convenience of home delivery.
E-commerce and affiliate programs
Opportunities for sale of loose tea are particularly attractive when
combined with effective e-commerce through affiliate programs.
The affiliate arrangement is a way for a company to sell its products
by signing up individuals or companies ("affiliates") who market the
company's products for a commission.
Affiliate programs afford a small entrepreneur the ability to leverage
the website of the tea manufacturer through their own affiliate site.
Through this technique the affiliate can minimize their investment and
maximize their return. An affiliate relationship is established by
agreement between the affiliate and the manufacturer whereby each party
benefits.
There is more to an affiliate relationship than a simple agreement
however. The affiliate must be provided with marketing support, account
feedback and prompt payment of earned commissions. Most good affiliate
programs share a number of characteristics:
• Real-time reporting statistics
• Real-time email alerts upon each sale
• Payment on a consistent monthly basis for initial and repeat orders
• High price-point products that are easy to sell and allow for substantial affiliate commissions
• A comprehensive package of rich content articles and banner
advertising that the affiliate can reprint and use for marketing
Of special note for marketing support is the availability of banner ads
that are high quality and effective. These are particularly useful
affiliate marketing tools. One company offers a commission and feature
rich affiliate program (http://www.goldenmoontea.com)
The customer service issue:
Tea drinkers are very loyal but demand high quality products and
premium customer service. As a result, customer service in the form of
rapid and correct order processing and fulfillment, notification of
orders and shipments, proper pricing and an emphasis on customer
satisfaction is a necessary part of the affiliate relationship.
If customer service is inadequate then this will severely impact
affiliate business and the affiliate reputation. Conversely, if
customer satisfaction is high, a steady stream of repeat orders will be
ensured and the affiliate will share in the additional revenue.
Choose a loose tea supplier that has a rich affiliate program, a
reputation for consistent high quality products, an e-commerce site
that is powerful and allows easy ordering and a company with a
reputation for excellent customer service.
Jon
M. Stout is the Chairman of he Board of Golden Moon Tea a division of
Element H2O. Golden Moon Tea is a supplier of high quality loose tea
and high quality tea ware. Golden Moon Tea’s website is found at www.Goldenmoontea.com
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