Shipping: The Wine Industry Roadblock
DTC wine is reaching its tipping point, as discussed in a recent blog post from WineDirect’s CEO, Joe Waechter. Wine shipments have increased drastically as it becomes easier and easier to order wine anytime, anywhere. As more wine lovers shop online, shipping continues to be a major roadblock for most DTC wineries. It's a complicated process - and it isn't cheap. Let's take a closer look, shall we?
Roadblock #1 - Shipping Is Complicated
Wineries know it's tough to get wine out all across the country. You have to deal with correct shipping addresses, an adult signature, weather holds, shipping carrier fees, licensing, taxes and more. American wineries have to deal with compliance and even states that ban DTC wine shipments completely. Canadians have provincial shipping laws, so, unless you live in Ontario, you're probably not going to taste any of Niagara's wines.
Getting Past Roadblock #1
- Find a compliance management system that runs in the background so the administrative work is easier for you
- Maintain an accurate CRM database with correct customer details so the shipping process is successful
- Allow redirects to avoid returns due to customers not being home or incorrect addresses
- Clearly explain weather holds on your website and set carrots for tasting room staff to mention this in the summer months
Roadblock #2 - Customers Are Impatient
Customers have become impatient – we live in a world of instant gratification. Other ecommerce giants have set the bar high with fast delivery. Customers don't care if they've ordered wine or a new shirt - they want it now. A confirmation email detailing their order is expected within minutes. If one isn't received, chances are they’ll call the winery to confirm that the order went through. Wine customers want an estimated delivery date and updates on where their wine package is in real time, so that they can be there to sign for the package.
Getting Past Roadblock #2
- Send an automatic order confirmation email
- Get your shipment out quickly by scheduling regular pickups at your winery
- Give customers an expected delivery date
- Allow text opt-ins to give customers real time delivery details straight to their phone
Roadblock #3 - It Ain't Cheap
Shipping is expensive. It is the single biggest hurdle in getting more DTC customers. From the customer's perspective, they can get your wine retail for the same price as DTC - they don't have to pay for shipping and they don't have to wait for it. Don't just pass on the carrier cost to consumers. Since your winery profit margin is higher DTC, encourage customers to buy from you directly and give them a bit of a break on shipping.
Getting Past Roadblock #3
- Setup accurate product weights so shipping companies charge you the correct fee
- Send out 'your order had shipped' emails with an expected delivery date
- Join a shipping loyalty program and crowd-source shipping costs with other wineries
- Offer 1 cent shipping promotions to your top 50 customers, red wine lovers, local buyers, etc to drive sales
The Future of Wine Shipping
There are a lot of barriers shipping wine DTC. Support organizations like Free the Grapes which has successfully opened up states for DTC wine shipments. We've come a long way as an industry, but are still looking for ways to improve the shipping experience for consumers. If you have any great ideas for making shipping better for all wineries - we'd love to hear them in the comments below!