Tag Archives: Wine.com

Wine Delivery & Shipping Costs — Is This a Battle that Wineries Can Win?

On Twitter, Jason Haas of Tablas Creek shared some of the struggles that wineries have battling consumers’ expectations for cheap or free shipping on wine deliveries.

He very justifiably blames Amazon for creating this quagmire. It’s a sentiment that I’m sure most e-commerce businesses would agree with. One recent study from the National Retail Federation found that 75% of respondents in the US expected free shipping–including 88% of Boomers.

And as retailers like Wine.com and Total Wine & More roll out their own free shipping programs, it won’t be only Amazon shaping wine consumers’ expectations.

As I noted in my retweet of Haas’ thread, this has me conflicted. I know that shipping wine is expensive and complicated. There are so many things that wineries and retailers have to consider which businesses shipping books and bed spreads don’t deal with.

But when I take off my “wine biz” glasses and look at how I act as a consumer, I know that I’ve been Amazon’d.

Shipping Cost screenshot

On second thought….maybe not.


I can’t count how many times I’ve been on a winery’s website picking out items only to go “Whoa” at checkout because of delivery. It’s not that I expect free delivery, but when I see a fee of more than $25-35 (roughly $2-3 a bottle) for a case, I start asking myself, do I really want this wine?

That should make wineries nervous. Because, usually, the answer is going to be “No. I don’t need this wine.”

Up until that point, I was fully onboard spending money and just rolling along with the sale. However, as soon as I was given a reason to pause and wonder if the wines are really worth it, the train derailed.

It’s not because I felt angry or offended that a winery was charging delivery fees–again, I completely understand the business behind it. But what wineries need to understand themselves, is that consumers have so many other choices–not just of different wines and wineries but also of other beverages.

There’s never a situation where we absolutely have to buy your wines. Our lives are not going to be incomplete and joyless without it. In that sense, buying wine (especially online) is always going to be a bit of an impulse purchase. A fleeting fancy carried by a moment of intrigue.

The last thing a winery wants to do is kill that momentum.

Now if I feel this way as a consumer who is reasonably knowledgeable and sympathetic about the tough market wineries face, think about the average consumer who doesn’t know the business. It becomes easy to see why they would expect free delivery or fees far less than the $25-35 that someone like me is comfortable with.

Likewise, it shouldn’t be a shock when e-commerce studies show that upwards of 50% of online baskets are abandoned on the delivery page. While I sincerely hope that cart abandonment numbers are better for wineries, I’m sure even a 30% rate of abandonment cuts deeply into a winery’s sales.

So how much should wineries subsidize shipping?

I don’t think there’s an easy answer to that question. Every winery is going to have its own numbers to crunch. But there’s always going to be a delta between what it costs to ship and how much consumers are willing to pay–and that gap is only going to get larger.

Therefore, I would encourage wineries to add a few more numbers to crunch.

1.) How much are you spending on new customer acquisitions?

So many of my abandoned carts were at wineries that I never tried before. I would come across an article or hear a recommendation that piqued my interest. I’d go check out the website, find other wines that intrigued me and start nibbling the hook. But the difference between reeling in a new customer or having the line break often comes down to how easy it is to get your wines. It doesn’t matter how good the wine is if crappy websites, poor user experience and, yes, delivery fees means that the consumer never tries it. It’s not only a lost sale but also a lost relationship.

Remember, there is always other wine and wineries out there casting their lines. Someone else is going to reel in that customer if you don’t.

2.) How much do you spend to break into a new market?

Many DtC sales are from consumers who can’t find your wine locally. If they’re not going to buy from you directly because of delivery fees, then how much do you need to invest in establishing a presence in their market? This is a big question for West Coast wineries who are looking at the East Coast–which is often the most expensive region to ship to.

Of course, thanks to the asinine three-tier system, even shipping into new markets usually requires licensing, fees and significant investment on top of shipping costs. More numbers to crunch.

3.) But even for the markets that you’re already in, what is the margin difference between a consumer buying 1-2 bottles of your wine retail versus 6-12 online?
Flat Rate screenshot

Oh I’m definitely going to spend way more than I intended here.

This is one part of the “Amazon Effect” that actually benefits wineries. We’re all really suckers when it comes to free shipping and will spend more to get it.

And I fully admit that I’m one of those suckers. If a website gives me a spending target to get free shipping, I’m usually going to exceed it. Even though I know it’s a placebo and I’m still indirectly paying for shipping, it feels easier to justify the money. Instead of paying an “extra fee”, I’m getting an extra product, so I’m happy.

With wine, a flat rate delivery-fee always encourages me to buy more because I figure if I’m in for a penny, I’m in for a pound. And, hey, if someone else is going to carry the heavy wine bottles to my door, then I might as well buy two cases instead of one!

But if I’m at a wine shop, I’m buying far less. Plus, I’m filling up my basket with other wineries’ wines as well–giving you even less of my wallet.

So can wineries win the delivery cost battle?

In short, no. Consumer expectations for free and cheap delivery are only going to continue to grow stronger. Yes, it’s easy to blame Amazon. But, ultimately, it’s always going to be consumers writing the rules with their wallets.

And while your tactics might need to change, the battle for consumers’ wallets can certainly still be won.

Subscribe to Spitbucket

New posts sent to your email!

A look ahead to 2018

On Bloomberg, Elin McCoy (of The Emperor of Wine fame) shared her thoughts on what wine trends will be the stories of 2018. She makes a few interesting predictions that are worth pondering.

1.) Big bottles will be huge

McCoy predicts sales in large format wines will continue to grow in 2018, citing the UK retailer Majestic’s enthusiasm for the category with sales of large format wines up nearly 400% in 2017. While among collectors, magnums have always held fondness for their ability to age more gracefully, the trend towards large format wines grew even in the “in the moment” rosé category.

Beside, why have a mag of one rose when you can have 6?


I have to admit that I’m a bit skeptical of this trend namely because of other trends that are happening in the important Millennial demographic such as drinking less overall and when they do drink, not overdoing it. Downing a mag of rosé doesn’t seem to have long term appeal.

We are also likely to see a backlash to the “Generation Waste” trend among Millennials. One of the drivers in the growing “meal kit” industry that is popular among Millennials is the potential for less food waste with each kit being exactly portioned for 2 to 4 users. The potential waste in opening up a large format makes that trend seem even less appealing so I would wager more on single-serve wine packaging gaining traction than large formats in 2018.

2.) The year’s hot spot will be Spain

I’m on board with this prediction and I will add Portugal with its wealth of indigenous grape varieties to the watchlist. Now granted, wine experts have been making these predictions for a couple years. But hey, we’ve got The Bachelorette’s go ahead now. Enloquece, amigos!

3.) Climate change is heating up

Though no one is talking about Swiss whiskey….yet.


This is something I talked about last year with my post Running Out of Stones (and Glaciers) in the Age of Climate Change. The changing map of wine being driven by climate change is both frightening and exciting for wine lovers.

As much as the Japanese have taken the whiskey world by storm, could they do the same with Pinot noir from the north island of Hokkaido? Perhaps, but again we have to question at what cost?

4.) You’ll be buying more wine online

This one is up in the air for me. If Amazon can’t make a go out of selling wine online, who can? Certainly not Wine.com which has horrendous customer service.

Though considering most of these wines are $2-3 higher on Vivino than they are at my local wine store, maybe free shipping isn’t that great of a deal?


I hit the “fool me twice” wall with Wine.com this past holiday season. I previously had a poor experience with getting a order with them but thought I would give Wine.com another try.

I ordered wine in November for a Champagne tasting event on December 17th, figuring that giving them more than 3 weeks would be adequate time. After weeks of poor communication, promises of status updates that never came, I got frustrated enough to cancel the order and have washed my hands of ever shopping with Wine.com again.

Still, I’ve had positive online experience with retailers such as JJ Buckley and utilizing in-store pick up with some local Washington State retailers. I will confess to being intrigued with Vivino’s Amazon Prime type offering of free shipping with a $47 annual membership.

I’ll keep my opinion of online wine shopping fluid at this point.

5.) The fizz sector will keep broadening

“I enjoy cooking with wine, sometimes I even put it in the food…” — Julia Child (or W.C. Fields depending on the source)


McCoy notes that consumers can expect the price of Prosecco to rise in 2018 thanks to some troublesome harvests in northeast Italy. But even if consumers move away from Prosecco, increase interest in Spanish Cavas and French Crémants will more than fill the gap.

With this I fully agree as this is another Millennial driven trend that has several factors going for it. Beyond viewing bubbles as an everyday beverage (as opposed to just something for celebration), the cocktail culture among Millennials has saw a renaissance of not only classic favorites like Aperol Spritz and Kir Royale but also new rifts that give Millennials a reason to always have a bottle of bubbly in the fridge.

6.) The “luxury experience” way to taste wine

While most estates here are “reservation only”, I will say that one of my favorite visits in Bordeaux was to the very non-luxurious “Shackteau” of Marie-Laure Lurton’s Château La Tour de Bessan


This trend saddens me because it is also tied into wineries moving away from offering free tastings. That is fodder for another post but, personally, I believe that the more “exclusive” and limited that wineries make their tasting experience, the more narrow their customer base gets.

While I understand the desire to discourage “Bridesmaid Brigades” that swoop into tasting rooms, guzzle up the free booze and leave without buying anything, I ultimately think wineries are better off encouraging folks to come in off the street and give their wines a try versus making their potential customer decide, right off the bat, if this unknown winery is worth paying whatever tasting fee is being asked.

Even among known and established wineries, I fret that the trend towards “reservation only” and luxury experience tasting is only going to push more wine into the realm of the “1%” and away from the experiences of regular consumers.

7.) The rise of robots in the poshest vineyards

Oh Lord have mercy if Elon Musk ever fixes his attention on the wine world. This is another area that is both exciting and frightening for wine lovers. On one hand, it is indisputable that advances in knowledge and technology in the vineyards and winery have led to this present glory age of exceptional wine quality. Even in the worst of vintages, it is still possible to make good (if not great) wine.

“Modern” old-school technology at Ch. Valandraud in St. Emilion.


But, again, at what cost? Increases in technology have certainly added more tools to the winemaker’s tool belt but at what point do these tools stop being tools and start being more cosmetic manipulation?

Machines can help make better wine but, if you reduce the human element, can it really be great wine? How much of the “terroir” or story of the wine do we lose when we remove more of the human actors?

Of course, one driver of this trend that shouldn’t be overlooked is the increasing labor shortages in major wine regions. Perhaps the move towards technology could be one necessitated out of survival.

Either way, 2018 will be another interesting year of changes and development in the wine world. Drink up!

Subscribe to Spitbucket

New posts sent to your email!