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?
Source http://www.winespectator.com/webfeature/show/id/47366
I do not think amazon will be successful. Amazon will not gain enough store locations and proximity to be able to successfully deliver alcohol. Ordering wine from Amazon would not be as easy as going to a restaurants web site and ordering food because it will have to process through amazon and then to the actual winery they consumer is ordering from, taking more time which will deter the customer away. I think it would be a better, more successful business venture if your local liquor store invested in a delivery service. Coming from a college perspective, the delivery service would make majority of its money from people who want to keep the party going but are unable to drive and Amazon will not be able to delivery in the timely manner that the customer would need.
I disagree with the comment above. I think Amazon will be successful in the launch of this new online market because online shopping has definitely grown in popularity within the last 10 years, even for the older generation who were first apprehensive. I do not think there will be an issue with going through the various vineyards to fill the orders because it shouldn’t be much different than vineyards supplying for any retail store. The postal system has also just allowed shipping of alcohol, which is something now Amazon and these vineyards have on their side for lower cost shipping and gives an incentive for consumers to buy online. I think that consumers will appreciate the new availability of the wines that are unique to places such as Napa when they do not have the luxury of flying there to purchase the wine or search all over the internet.
I think Amazon will be success, but not as successful as it would hope to be. It is true that more and more people become interested in testing foreign wines that may not be available at your local convenience store, so Amazon may be where they want to look. The reason why I say it won’t be as successful as it would like to be is because there are many other ways consumers can look to rather than going to the internet. Many liquor stores carry a large variety in wines, and that just makes it convenient to consumers. I agree with the first comment that the stores should invest in a delivery service, for not everyone may be able to make it to a store on time. One way businesses would benefit from this service Amazon were to provide is if they find better deals on wines when purchasing in large amounts. In conclusion, I do think this service would be successful if one is willing to wait to receive their wines, but not if it is something they need perhaps on the same day.