Amazon wine launched Thursday, November 8 with more than 1,000 different wines from wineries around the United States. This will be Amazon’s third attempt in trying to enter the wine market. Perfect timing for them to get it figured out too with the holidays right around the corner.
With Amazon Wine, customers could order up to six bottles for a shipping fee of $9.99. Prices of wine range from $5 to $200.
The Amazon wine service will be available to California, Connecticut, Florida, Idaho, Illinois, Iowa, Nebraska, Nevada, North Carolina, Oregon, Washington, Wyoming and the District of Columbia. Don’t fret if you don’t see your state, Amazon says more states will be added “soon.”
While Amazon wouldn’t comment directly, a document was obtained by The Press Democrat saying, “Amazon is charging wineries a 15 percent referral fee, a cooperative fee of $49 for every $350 in sales, and a subscription fee of $39.99 a month. The cooperative fee and subscription fee will be waived until Jan. 31, 2013.
one of the participating wineries.”
Paul Tincknell, a Healdsburg wine marketing consultant who prepared a pricing analysis of the Amazon program explained how Amazon wine will work out. “It’s very heavily dependent on the price point of your wines and how much you can sell per month. If you’re paying $40 a month and selling a $4.99 bottle of wine, it’s going to be a bigger percentage of your margins than if you’re selling a $49.99 bottle of wine.”
“What Amazon is doing now is putting more work onto the wineries as far as compliance and shipping. They aren’t trying to manage all that themselves,” said Sara Mann, an attorney with Hinman & Carmichael who previously served as the corporate counsel for both New Vine and WineShopper. “That’s a more sensible way to go about it.”
Amazon shoppers can already find wine on Amazon’s website, but it’s more like a search engine for wine as of right now. It directs buyers to external websites where they can complete the transaction. With the new site, Amazon Wine, buyers will be able to make the purchase without ever leaving Amazon.com.
Marlow Daniel, a spokeswoman for Francis Ford Coppola Winery is thrilled about working with Amazon wine. “It’s a great opportunity to get our wines in front of a large number of people,” he says. “We are viewing it as an extension of our e-commerce business as the holidays approach.”
Amazon Wine Store
Deirdre Bolton reports on Amazon.com’s move into selling wine.
Amazon Wine Club Store
Hope & Grace’s Charles Hendricks discusses wine sales. He speaks with Cory Johnson, Willow Bay, and Jon Erlichman on Bloomberg Television’s “Bloomberg West.”
Amazon Extends Super Saving Shipping Deadline
Kindle Fire Voice Recognition May Be In Amazon’s Tablet Future
Amazon Kindle Fire To Get Competiton From 7.85 inch iPad from Apple
Kindle Fire, Kindle Touch & Kindle Selling 1 Million Units A Week