E-commerce for Wine Stores

An overview of the Tools of the Wine Trade that Sells Online

Wine Sales are growing at a healthy rate and yet the retail sector is becoming more competitive that ever.  Supermarkets and grocery stores want access to liquor licenses and many wine stores find themselves being forced to change strategy; having been the only liquor store in their neighborhood they often find themselves trying to cope with a price competitor.  Wine Shops need to be able to extend their presence online to take advantage of new markets and offer more service to their local customers.  The lens brings together articles about selling wine online with links to POS systems and interstate shipping.

Cultivating Value with a Personal Message

This month's article in the Beverage Media

In promoting your store to customers there has rarely been an opportunity like email; you can reach almost all your customers using a single communication tool. According to a recent Forrester Research report, 97% of consumers use email; "consumers and businesses are raising their hands and asking for email," says Stephanie Miller in "Email Marketing Comes of Age."

Sadly, this opportunity is being largely squandered. The prevailing wisdom has been that an email blast should be sent as far and wide as possible, in the hopes of churning up interest from the farthest corners of the Internet. Email campaigns have been treated like direct mail without the associated costs. Stores would send emails to every customer, irrespective of whether the customer was likely to be interested in the message. "Many marketers think of email as a broadcast channel, not as a way to connect with individuals," adds Miller.

The Problem with Spam
The result has been Inboxes that are overflowing with unwanted messages. The outcry against Spam led the Internet Service Providers (ISP) to introduce Spam filtering techniques that block large mailing lists and suspicious keywords. Most customers can anonymously report any email as Spam, which results in e-mail traffic from that domain being blacklisted for a time. Many customers receive email from multiple addresses of differing priority, making it much harder to ensure your message is read.

Read more about above Creating Value with a Personal Message.

An e-commerce program for wine stores

Link to your POS to your website and offer Virtual Inventory

The following are links to recent Talkin' Tech articles published in the Beverage Media

Shipping Wine Interstate

The full opportunity on the Internet for a wine store is to reach customers that are predicted to purchase a significant portion of the total retail sales for wine, whether those sales happen online or offline. Unfortunately, this potential can be restricted by state laws that are intolerant of interstate shipping.

Meanwhile, there are likely to be significant legislative changes over the next five years that could improve this situation for online wine merchants in more restrictive states. Legal battles are still being fought over whether wineries and retailers can legally ship interstate and some expect that the Supreme Court will have to be more explicit about what states can and can't do with regard to the 2005 Granholm ruling.

The newest wave of lawsuits is challenging revisions to state laws that were written to comply with the Supreme Court ruling. Most lawsuits deal with the question of whether volume caps and in-person purchasing requirements represent discrimination against out-of-state wineries.
If the open market advocates win their day in court there is a possibility that more states will update their interstate shipping policies to permit retailers to ship in and out of their markets. Such a concession is likely to be accompanied by a tax collecting and reporting responsibility, which is a sure sign of legitimacy.

Information about Shipping Wine to other states

The following articles are updates on the changing picture of shipping wine interstate.
Common Carriers report Wine Shipments to the States
A new model of state enforcement is emerging that gives state agencies leverage against wine stores. In order to comply with license requirements, the common carriers are now required to report wine-shipping activity to several state authorities on a regular basis.
Restrictive State Laws may Not Provide Protection from Competition
Why gamble that your state might be persuaded that consumers are better served with access to greater selection and pricing by allowing competitors from other states to deliver; especially if they can be obliged to collect tax? It is quite likely that retailers who wait for this decision will find they lack the fitness to compete online with stores that have been growing their businesses using ecommerce for several years.
ShipCompliant's blog
A timely update on interstate shipping legislation as it affects wineries. We still await Tom Wark's annoucement that SWRA is publishing an update for retailers.

Wine Harvest pictures

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  • grifian Aug 9, 2007 @ 9:38 pm | delete

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grifian

Ian Griffith is Beverage Media's retail e-commerce specialist.  With over 20 years experience in the wine business he authors a monthly... more »

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