Sales channels every winery can consider (or reconsider) now and in the days to come.
Not that any of us should be headline chasers, but it’s hard to ignore the news that more people are buying online now than ever before. If you aren’t selling as much wine online as you’d like right now, that’s understandable. It can be hard to go from a thriving tasting room to all online or home delivery nearly overnight. But there is opportunity here, filled with the possibility of both short-term and long-term gains.
According to Silicon Valley Bank’s State of the Wine Industry Report** wineries can experience growth in several main ways:
- Getting exposure to consumers who live elsewhere and don’t know you
- Finding ways to sell to them — digitally and in person, where they live
- Building your brand regionally by evolving the concept of experience away from the winery
This report came out in January 2020, months before the impact of COVID-19 accelerated the need for these avenues, all of which rely on digital communication. This same report says that 61 percent of a winery’s income originated with consumers who had been to the tasting room via on-site sales plus wine club and mailing list purchases. What about all those other people? The potential customers that aren’t part of your tribe already? That’s the opportunity!
Broadly speaking, there are two approaches here. The first is to beef up the direct to consumer channel that you likely already have in place: self-distributing through your website. The other is to engage a third party marketplace to help connect you with their consumers. Let’s take a look at some of the options available to you.
Today, we are sharing a round-up of online marketplaces to help your winery connect with prospective customers. Next week, we'll be sharing a round up of DtC tools.
ONLINE MARKETPLACES
Marketplaces don’t retain any products, but serve as online shelves to sell what retailers (including wineries) have to offer. These don’t hold a liquor license and aren’t selling their own products, so they are a favorable platform for consumer choice as well and competition.
According to Rabobank, “This channel has created new pathways for brands to gather consumer data and build awareness for online sales on the back of their websites, digital ads, and social media feeds.”
It is expected that these will continue to grow at a double-digit pace over the next five years and leapt up 60% year-over-year in 2019*. Here are companies that can help you tap into this growth:
LibDib
Distribution Reimagined
About, according to LibDib: The place to buy and sell innovative wine & spirits brands.
LibDib is for any licensed producer or importer of wine and spirits. Wineries get access to LibDib through an online account, where they list their products and set prices. LibDib has transparent information available on their website, which we see as a plus for wineries that want to consider this option. Check out the Maker Intro Guide for a full explanation.
Cost: According to LibDib, they earn an average of 14 – 18% margin on each sale, but there is no cost to list your winery. Wineries are responsible for shipping costs.
Yahyn
Old World Wine & Spirits Meets New World Tech
About, according to Yahyn: Rare and exotic wines, plus usual favorites, at the right prices with the click of a button.
This is a relatively new company, and for now they are invitation only. But Outshinery clients interested in joining can learn more by emailing info@Yahyn.com. Yahyn is pretty straight forward in their arrangement with wineries. There are no contracts and no upfront costs.
Cost: When your wine is sold, Yahyn charges 12%. Wineries are responsible for shipping costs.
Bevv
Buy Craft Beer Online
About, according to Bevv: Premium beer and cider shipped from the brewery to your front door.
Bevv is an online e-commerce and logistics solution for mainly breweries and cideries. Capacities include online storefronts, customer service, marketing, and shipping support. They also offer compliance guidance.
Cost: Plans start at $25 a month and Bevv charges 15% commission on sales for all plans. Breweries may be responsible for shipping costs.
Vivino
Buy the right wine
About, according to Vivino: The world’s largest wine community.
Vivino’s app is one of the most popular for wine lovers, with over 40 million users. Wine drinkers scan and rate wines they’ve consumed, contributing to a crowd-sourced database that is then used to help others discover new wines. The app also makes suggestions based on each user’s preferences and entries. With a click, people can then connect with retailers. merchants, and wineries and purchase wine directly from these sources.
Cost: To determine if Vivino is a fit for your winery, contact its team online here.
Wine Routes
Your personal guide to wine country
About, according to Wine Routes: Plan your route, explore unique destinations, discover new experiences.
Wine Routes is known for helping travelers plan winery tasting room visits, via interactive profiles that offer visits a range of useful information. Though tasting rooms are closed right now, wineries benefit from the wine listings feature. This allows them to showcase their bottles, collect drinker reviews and link back to their ecommerce site so users can purchase directly.
Cost: It’s free for wineries to claim their profile. A premium option is available for $49/ month ($44/month if paid annually). This gets you additional winery details, links to book a reservation, and buy now buttons for your wines.
Note: You may have heard of marketplaces like Drizly and Instacart, and while it’s possible that your wine can flow through these channels, they are largely tied to retail. If your wine is in a shop or grocery store, these can be a tool to bridge that final mile from the shelf to people’s homes.
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For Part 2, we'll be sharing DtC tools your winery should consider in 2020. Stay tuned!