Amazon Starts Selling Wine

The issue then was that they had to contend with the varied laws of 50 different states and the Amazon model was central distribution and volume purchasing.

Since that time, they've changed their business model and instead of shipping books out of a big warehouse in Sparks NV, they now have many warehouses around the country and I believe they're in every state. They've also transformed partly into becoming a fulfillment center for local businesses.

That's also why they dropped their opposition to sales tax and when you buy from Amazon now, you pay local sales tax on your stuff. At least I did on my last order.

That also allows them to deal with the myriad rules regarding wine.
I compared (as an example) Francis Ford Coppola Winery Director's Cut Cabernet Sauvignon 2010:

Amazon price = $29
Wine.com = $26

Shipping 6 bottles:
Amazon = $9.99
Wine.com = $21.45

Interesting that Amazon's $9.99 rate applies to 1, 3 or 6 bottles. If one is an anal accountant like myself I guess doing the math comparisons when shopping could save some $$$ - maybe enough to buy another bottle?
quote:
Originally posted by nodakgus:
I compared (as an example) Francis Ford Coppola Winery Director's Cut Cabernet Sauvignon 2010:

Amazon price = $29
Wine.com = $26

Shipping 6 bottles:
Amazon = $30.66
Wine.com = $21.45

Can't imagine buying from Amazon if these differences are representative.


you are very mistaken

that's sold by the winery themselves with Amazon acting as a distributor

The article sounds like they're going to be actual retailers themselves in which case I'm sure the prices will be much lower than what the winery themselves is selling it for.
quote:
Originally posted by g-man:
quote:
Originally posted by nodakgus:
I compared (as an example) Francis Ford Coppola Winery Director's Cut Cabernet Sauvignon 2010:

Amazon price = $29
Wine.com = $26

Shipping 6 bottles:
Amazon = $9.99
Wine.com = $21.45



you are very mistaken



Don't think I am. All I am saying is that these are the prices/costs on an example bottle if you bought from one website v. the other right at this very moment. I loaded a "cart" with 6 bottles and proceeded to checkout. This is what a person would pay...

ALSO: SEE EDITED MESSAGE ABOVE RE: SHIPPING
quote:
Originally posted by nodakgus:
quote:
Originally posted by g-man:
quote:
Originally posted by nodakgus:
I compared (as an example) Francis Ford Coppola Winery Director's Cut Cabernet Sauvignon 2010:

Amazon price = $29
Wine.com = $26

Shipping 6 bottles:
Amazon = $9.99
Wine.com = $21.45



you are very mistaken



Don't think I am. All I am saying is that these are the prices/costs on an example bottle if you bought from one website v. the other right at this very moment. I loaded a "cart" with 6 bottles and proceeded to checkout. This is what a person would pay...

ALSO: SEE EDITED MESSAGE ABOVE RE: SHIPPING


No,

the wine is sold by someone else with Amazon acting as a passthrough.

Much like if you looked up oil cans, there are dozens of sellers of them, with amazon llc. being sold out of them.
Right now they're linked up with a number of retailers, including Wine.com, and I think that's how they're circumventing the problem they had before. When I was negotiating with them regarding the wine business, they were trying to link up with distributors and then they would be the retailer. Instead, they've decided to link up with retailers.

I don't think Amazon is going to be getting into the distribution business insofar as it means becoming a distributor in all 50 states and then selling to retailers. They can't be both wholesalers and retailers in most states and their model is selling items at retail.

In my other, unrelated job, we've tried to get them into a wholesale model, where they offer volume pricing, and it's just not in their DNA. They like being the ultimate retailer.
quote:
Originally posted by mneeley490:
This is where "Prime" shipping would really come in handy. Winner


Im pretty sure that was part of the original spin and intrigue ... and one which I was headed to Amazon right now to find out if it still was included. Im guessing not anymore? 3.99 overnight shipping, I'd sink that business singlehandedly Smile

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