Amazon was introduced in July of 1994 as a small online bookseller. It later expanded to all household categories. Today, Amazon offers the Earth’s biggest selection of products in more than 160 countries across the world making them the leading online shopping site accessed via the World Wide Web. In addition, Amazon is planning to launch an online wine marketplace in the coming week. Do you think it’s a good idea for Amazon to sell wine online? Instead of waiting in line or wait until the shop assistant is ready to help you with your purchases at the store, you can do your online shopping while at home, work, or in the meeting.
On Monday September 24, Amazon.com hosted a workshop and invited members of the Napa Valley Vintners association. At the work shop, there were meeting 100 different wineries. Any wine lovers can now sitting in their room and order it online. According to Wall Street Journal, Amazon said the marketplace would begin “in the coming weeks” and the online retailer will be charging 15% commission of the sale price, as well as a monthly fee of $40 in order to join the marketplace. Each winery will be required to handle their own shipping and compliance with various state and federal laws. In effect, Amazon’s Wine Marketplace will provide a portal for wineries, putting their wines in front of potential customers, while the wineries will handle sales, shipping and legal hurdles.
However, this is the third time they have tried to sell wine on the internet. In the year 2000, Amazon invested $30 million in Wineshopper.com, but closed down ten years later as the business did not perform to expectation. The second attempt was in September 2008. Amazon hoped to sell wine, but it was not successful. They have faced another financial crisis, and almost lost the company. So will this third attempt be successful?
Amazon is again taking a very risky move, but I feel that Amazon can do it. I think Amazon actually made a smart decision to keep expanding the products to keep abreast of the competitions, like eBay and Wal-Mart. However, they are actually now get a new rival;
Wine lovers are present at every nook and corner of the world. Also because Amazon offered a wide variety of product, low prices, and worldwide shipping, people choose online shopping rather than going to shopping mall. There are many reasons I preferred online shopping. Every Saturday I turn on my laptop as soon as I woke up on. I played game and shopped online as I have breakfast. At lunch time, I had a sushi delivered! I preferred to stay home when I have free time and I am sure that I am not the only one.
Question: Do you think this third attempt of Amazon will be successful?