How I Made 6-Figures with an Online-Only Bakery

I created the first online-only bakery, Dessert .net Cafe. For 15 years my passion for baking southern cakes and gourmet desserts was in full bloom. I was generating a six-figure income from the comfort of my home. Not bad when you consider I started with one recipe, an Internet connection, and a used mixer with one beater. I kid you not!

So hold on to your whisk because I am about to share with you the step-by-step recipe that contributed to the success of my online bakery.

Picture this, it's 2006, I am homeschooling my daughter, and I need to figure out how I am going to make a living. As I stand in my pantry, I pray out loud, "Lord what am I going to do? How am I going to make a living? All I have is this German Chocolate bar and an internet connection."

I decided to bake the cake, it's my favorite, maybe it'll make me feel better. While I'm baking I also decide to invite my neighbor over to brainstorm ideas.

A few hours later the cake is ready, the coffee is brewed, and my neighbor arrives with her Mom. Ah, the more the merrier! We chat, we laugh, and we talk for over an hour, but no solution.

As I'm walking them out the door the Mom says,

"Don't worry, just keep praying. You'll figure something out I'm sure." Then jokingly she says, "But I tell you what, if you make me one of these German Chocolate cakes, I'll pay you. That's a start."

While they giggled the gears started turning in my mind. She continued,

"You can't find cakes like this anymore. Even if you do, they're not scratch-baked. This cake is like how ‘Grandma’ used to make it! Nobody makes them like this anymore."

Long story short, we're sitting back at the table talking about all the cakes and desserts from days gone by. My childhood was flashing before my eyes. It was indeed a nostalgic moment that we all shared.

NICHE SELECTION

I spent the rest of the weekend researching southern cakes and their history. Not only did I find the perfect business idea for me I also found my niche. I was on to something.?

Now that I had a valid business idea, I needed a plan of action.

My plan was simple: create a website, test recipes, and make money.

Going into my plan, I knew the website would take a few weeks to complete. In the meantime, I could test recipes and sell the baked goods to make money. And, I knew exactly where to sell them, fast! The 2-mile stretch between my house and the grocery store was several independent merchants selling goods. This is very common in California.

After making a variety of baked goods, I put on my apron, filled my biggest wicker basket, and walked, selling baked goods along the way. I stopped everywhere, from merchant stands to office complexes, convenience stores, and even my church. I thought Father Franklin was going to buy everything I had! It was a good thing I stopped to see him because he allowed me to sell my desserts at church events and in between Mass.

This route was my weekly schedule for several weeks. It wasn't long before I met a woman soliciting donations for her non-profit organization. She stopped me to ask about my baked goods. We continued to chat as she mentioned that she is at that store location every month. She invited me to hang out with her and sell my desserts. I took her up on the idea and increased my schedule to selling a few days a week.

As my schedule quickly became full, it was clear that my approach to selling would be limiting.? In other words, the business could only make money if I was physically going out to sell. Hmmm, I wanted to create a business that would generate sales all day, every day, on its own.

One thought led to another, I did a little research, and sure enough, I was correct ~ other people are selling food online too. So I took a chance and posted a German chocolate cake for sale on eBay. To my surprise, it sold for $75 plus shipping! Whoa, this is pretty much what I was making walking in the heat. The website and online selling are looking really good to me right now.

I'm very excited about my first order. Everything has to be perfect. I can bake this cake like a pro, I can envision it well-packaged so I have no concerns. Or so I thought. Then I realized, wait - - I'm in California and the customer is in South Carolina. OMG! How the heck am I going to get this cake across the country?

I spent the next few hours researching couriers, the post office, UPS, FedEx, refrigerated trucks, you name it. The more I learn the more I love the idea that shipping cakes would give the business?a national customer base.?? I wanted to master this shipping option for my customers. I also wanted to know what I was talking about before I contacted the customer to confirm the order. LOL.

Unfortunately, what I didn’t find in my research was how to package the cake for shipping. I quickly realized that would be something I was going to have to develop on my own. Very few big businesses were shipping, and artisan bakers still don't. But, I did find a needle in a haystack. I found a wedding cake maker that shipped! She explained that she shipped the cake layers individually wrapped with instructions for the customer to assemble upon arrival. Ultimately, she gave me great advice and the foundation for developing shipping methods for the variety of baked goods I was selling.?

BUILDING AN ATTRACTIVE BRAND

My business idea was evolving into a?clear and concise concept.

I was ready to contact my first customer to confirm the order and delivery. I thought long and hard about the email I was writing. Whenever I engage with customers I never want to appear small and unprepared. I make every effort to give the impression that my business is established, I am well prepared, as if I've done this a million times.

My customer responded with a requested delivery date, mentioned that the cake was for her dinner party, and suggested I include business cards to refer her guests. Well, you don't have to ask me twice! I shipped the cake and included business cards,?gift certificates with a new customer discount, a gift certificate with a re-ordering discount, a thank you note, and a cake cutter as a freebie.

For years I continued to include freebies to stay top of mind.?An item that can remain long after the dessert is eaten, like a refrigerator magnet, or can be used, like a cake cutter, serving tray, dessert plates, or tongs, is a constant reminder of your business. Spending less than $2 on inserts and freebies proved to be an effective method for generating re-orders.

I sent a shipping confirmation email so that she can track her package.?This is exciting and kind of a big deal in 2006. Remember we weren't ordering online like we are now. Customers were cautious about using their credit cards online. So, every step had to be exciting. I had no room for error and?needed to make an impression.

HIGH QUALITY PRODUCTS & INGREDIENTS

Emilie's cake arrives in perfect condition. She is elated, according to her awesome review.?All I could think of was "It works! My business idea works! Okay, okay, calm down. Now, how can I turn up the volume?"

To increase sales, I added items to the eBay store. Then, I set up Etsy, Amazon, Bonanza, and OpenSky stores as well. Now, I have five marketplaces working to build visibility and get customers. I was easily generating one order per day consistently.

I am still building the website; I wanted it to be engaging, fun, nostalgic, and have all the bells and whistles I could technically provide.?

Several weeks go by, business is steady, and finally, my website is finished.? The first thing I did was send an email announcement to all the customers I had gained from the marketplaces. I could hardly wait to tell them to come visit the new website?along with a few new items.? With repeat orders and new customers, sales doubled to two orders per day.

SEAMLESS SHOPPING EXPERIENCE

I think this is a good time to say, “If you want to be taken seriously, get a website!”

I am glad I made the website a priority. It changed the business for the better in so many ways. My intention was for the website to make things easier for me. As a result, it became a fun and engaging place for customers.

MARKETING & PROMOTION

This was the perfect marketing mix for my business, my time, and my customers.

• I found marketplaces to be the most effective marketing strategy for?building my customer base.
• Social Media was engaging but conversion was low. I posted delicious photos of each item with its history, fun facts, wine pairing, and direct links.? Although the platforms were increasing visibility, upon taking a closer look at the results of my marketing efforts, I found that some platforms were driving traffic, some were driving paying customers, and the rest were attracting Looky-Lou’s.
• I?also added backlinks?to my website wherever possible by creating a profile in directories to attract wedding vendors, party planners, and restaurants, just to see what was effective for my business.
• My email list proved to be a powerful tool. Without question, the most valuable asset any business can have is an email list of interested and loyal customers.
• And finally, I used website plugins to incentivize new orders and reward re-orders.

I started tracking the results of my marketing efforts from the very beginning. (Hey, I’m an accountant.) Once I figured out what worked and what didn’t, I made sure to?maximize content and features on what worked and immediately eliminated what didn’t work. So, believe me, I tried many other marketing tactics aside from these. Anything that is not listed above, I found to be ineffective or too time-consuming - for me. And I must add...I have never paid for advertising.

EXCEPTIONAL CUSTOMER SERVICE:

As long as I was ‘delivering the goods’ I could depend on customer loyalty.

You wanna'‘ hear something funny? In 15 years, I don't think I received 15 phone calls. My customers were able to do everything on the website. That tells me that I answered all the questions a customer could have on the website. Essentially, this is the purpose a website serves.

I gradually added categories to my menu over a two-year period. By the time I completed my fresh-baked menu, I had 15 dessert categories, from southern cakes to cake balls, to bread puddings with dessert sauces.

This may seem like I was hair-raising busy but, I wasn't, because I was organized:

• I had a process for baking, packing, and shipping orders;
• I had policies in place that supported a healthy cash flow and eliminate refunds;
• I had automated marketing to ensure consistent visitors and high conversion.?

Remember, this is an online-only bakery, so I only bake when customers order. Unlike a storefront bakery, I didn't have to bake products every day and hoped they sold.?

With Dessert CAFE's business model, each day I would simply:

1. Print orders and file according to “Bake Today” dates
2. Pack and Ship today's orders by 10:00 AM for pickup at my door
3. Bake orders that we're shipping tomorrow.

I built a consistent income of three to four orders per day because of the website.

I maintained this schedule and a consistent income for a few years until I noticed something unique. Rarely did a customer order just one item; Maybe a new customer ordering for the first time, but I could count on every order having at least two items, and averaging about $125 plus shipping.

I remember thinking my ‘customers can't be just dessert lovers if they're ordering multiple items, there has to be a dinner party or gathering for a customer to need that much dessert’. So, you know me, I inquired.

Asking via email or phone helped in two ways:

• I needed to add an ‘Arrived By’ date during checkout. This would allow customers to schedule when they want their order to arrive.
• It helped to segment customers because they were more than dessert lovers, they were party planners, gift givers, business owners, and hosts/hostesses.

SCALING & DIVERSIFICATION?

So how can I use this information to my benefit???Through attending to and meeting their needs.

Whether my customers were corporate clients, wedding planners, or gift-givers, I thought about how I might serve each segment of my target market.? As a result, I created big-ticket items and packages to serve their large-quantity needs. By the following year, I was clearing 6-figures.

CONCLUSION

With the onset of the pandemic in 2020 I laid down my spatula and decided to travel full time. And yes, I miss the baking business. I’ve had four businesses since the ’90s, and for certain, the baking business was THE happiest business I've ever had!

While traveling, I create actionable content for new entrepreneurs, offer consulting services, and I even created a course specifically for aspiring bakers struggling to start, build, and grow their baking businesses. So, I guess it’s safe to say I have the best of both worlds: traveling and baking!