Steve Bachmann

Steve Bachmann

1p

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508 weeks ago @ ShipCompliant: Wine ... - Amazon's Exit From Win... · 0 replies · +1 points

While there's no doubt if Amazon Wine had launched that it would create a form of "instant distribution" for wineries seeking a one-stop way to access broader distribution, the hefty fees seem like they would dampen the party a bit. While basically 50% fees is no different from a distributor, at least if someone in the retail tier decides to discount a wine to move it, the winery payments are insulated from it. Not true in the Amazon model where the price offered (set by the winery) directly drives the winery payment. Offer it at 20% off retail list, and your payment is reduced 20% too. (By the way, this is based on my understanding but I have not been privy to actual contractual agreements offered to wineries).

Our Vinfolio Marketplace offering provides wineries with an alternative channel operated by a licensed party. While we still have outbound shipping restrictions to deal with, the model is much more flexible and fees dramatically lower (15%). Moreover, international customers may be accessed too. I wrote a blog post yesterday afternoon which outlines the benefits to wineries called Marketplace - Wineries' Alternative to Amazon. Here's the link if anyone's interested: http://www.vinfolio.com/thewinecollector/2009/10/...