RSS FeedAmazon not to stock wine online
Completely dashing this writer's plans of doing ALL his Christmas shopping online, Amazon have announced that they are abandoning plans to sell wine online.
The US wine market is currently worth about USD$25 billion and it would have been an incredibly profitable market for Amazon to get into, however the online giant has faced a series of wide-ranging problems due to complex and varying regulations governing alcohol sales in the 50 states.
The decision was made public after an email from a senior executive to a number of wineries was leaked to the US media.
"I am very sorry to let you know we have recently decided not to resume shipping," Amazon senior account manager Dini Rao said in the email.
"As you know, we were excited to work with you to build the AmazonWine business. For that reason, this was a very tough choice for us."
Complex distribution
Amazon's plan had been to ship US wines to up to 26 states, but its fulfilment and logistics partner, New Vine Logistics, ceased trading in June this year, before being taken over by Inertia Beverage Group. At the time, their plans were first announced, it was revealed that Amazon had made deals with the Napa Valley Vintners Association.
Terry Hall, spokesman for the 315-member trade organization, said the NVVA has arranged workshops for producers who might want to sell their wine via Amazon. Hall said, at the time, that Amazon was 'really looking to be the go-to website for wine sales,' and that 'they're fast-tracking it right now' and hope to sell wine in about 26 states.
However, it appears that Amazon has been unable to make their wine business model work with state distribution problems causing endless headaches.
According to a source speaking to decanter.com , "There were just too many issues with fulfilment and distribution to make it worth their while."
"If anyone could have made it work, they would have - but shipping wine in the US is a logistical and regulatory nightmare."
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