Not so Fast Amazon, New Facebook App
My business partner Matt forwarded me an interesting article this morning that appeared over at Luxist, talking about how New Vine Logistics which Amazon had planned to use as their wine shipping arm…..has closed.
Of course, this isn’t to say the idea of Amazon in the wine business is dead….far from it.
There are already reportedly multiple offers to take over the debt of New Vine Logistics….this certainly isn’t going to kill Amazon’s entry into wine, it may delay it by 6 months or so though.
A number of people have asked me if I’m concerned about Amazon entering the wine market. On some level, of course, having the second largest retailer on the web entering your field when you’re still in the start up phase is far from a good thing from a competition stand point and a search engine standpoint. Moreover looking at how Amazon has chosen to go about their entry into the book market, they slash prices and wait for the competition to go under before raising them….it’s a good business plan for them and who could blame them for it.
On the other hand, I highly doubt that Amazon is going to want to deal with the type of small, boutique high end wineries that we’re targeting at Uncorked Ventures. Is it worth the trouble for them to ship 25 cases of wine considering the bureaucratic hassle that is going to be involved? I highly doubt it.
If we were looking at having $30 monthly wine clubs I’d be very, very concerned though because Amazon can certainly corner the market for entry level wine drinkers. The question becomes a few years after their customers start drinking wine, do they move up within Amazon, or do they look outside for a smaller more intimate operation?
We’ll continue doing what we’re doing because we know it will work in both the short term and the long term. There is never any substitute for customer service and we believe having direct access to the owners of the wine club will give us that added advantage…..we’re also happy to move forward with our export operation….that is one part of the business plan that hasn’t been matched anywhere else.
We’re also happy to announce we’ve created the first of our Facebook applications. This is a short quiz that allows people to choose the right wine club for them….yes we’ve included our competitors. Check it out: