The Winery’s Guide to Amazon Wine

A deep dive into Amazon Wine- from the Winery’s perspective

 

You like to sell wine- Amazon likes to sell everything. Sounds like match made in heaven, right? Amazon has 250 million active users and could open up a huge market for your wines, but there are a few Benefits and Drawbacks to consider before listing on Amazon Wine.

Benefits

Did we mention that Amazon has 250 million active users? Millennials (my generation) have grown up with Amazon, and checking Amazon has become part of our ingrained habit loop- I need something, I check Amazon, and if they have it (and they always do) I buy it using a single click. Shopping trip complete.

Amazon doesn’t just have huge traffic numbers either- they also have some of the best engineers and marketers in the world working to convert that traffic into sales. Amazon offers responsive web design, seamless and familiar checkout, and tireless re-targeting (see example images below). Let’s just say it’s likely customers will find shopping on Amazon easier than going through your website.

 Amazon2

This is Amazon’s third foray into wine sales, so they know what is required and offer “participating seller” sales, search by state, type or varietal (currently 9,784 results), automated compliance, payment processing, and fraud protection. Clearly there are benefits to working with Amazon Wine, but Amazon does expect something from you in return. That’s where the drawbacks of using Amazon Wine come into play.

 

Drawbacks

Amazon Wine will not connect you to their massive customer base for free- there is currently no per item listing fee, but Amazon will collect a 15% referral fee from the order subtotal. When an order is placed through Amazon the buyer’s shipping, email, and phone # is sent to your Amazon Sellers account, and you are responsible for shipping the order. Currently, $9.99 is collected from the customer for regular shipping whether they buy 1 or 12 bottles from a single producer.

Here is the real drawback of Amazon Wine sales though – the customer is Amazon’s, not yours. Amazon’s terms of service only allow sellers to contact buyers through the Amazon Seller’s portal, and communication can only be to complete the buyer’s transaction. That means no DTC Sales emails, phone calls, or mailers after the purchase. The customer may continue to purchase your wine, but Amazon will always be the middleman, and your efforts to build a relationship with the customer will likely be seriously hampered.

 

If you’d like to talk more about Amazon Wine sales or other DTC strategies find me on social @WineRelay or email Michael@WineRelay.com. Find my work at WineRelay.com .

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