Our winery DTC ecommerce workshop at the Southeastern Wine Symposium in North Carolina, November 2016. Learn what differentiates the top 20% of wineries, and what you can do to compete.

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Winery Ecommerce 101
How to succeed with DTC in the digital age

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Hi, my name
is Kevin

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DTC wine is growing
3
2010 2011 2012 2013 2014 2015
2.7
million
2.9
million
3.2
million
3.5
million
3.9
million
4.2
million

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Ecommerce is growing
4
2010 2011 2012 2013 2014 2015 2016
167
billion
194
billion
224
billion
256
billion
290
billion
325
billion
262
billion

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Wine being sold online is small
5
Wine Apparel Electronics Books General
Retail
It’s easy to see
this doubling or
tripling
3%
14%
35%
74%
9%

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1,500+
winery
ecommerce
sites on
Vin65

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Vin65 platform DTC sales
7
2013 2014 2015 2016
308
million
528
million 772
million
1 billion
dollars!

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Across
1,200+
wineries
$1.8 billion
in sales
Over 9
million
transactions

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Top 20% of
Wineries
Bottom 80% of
Wineries
9
89% of sales
are made by
the top 20%
of wineries

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How do
they do it?

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Case
Production?
Big
Scores?
Location?
High Bottle
Prices?
Demographic
Focus?
Do they have an unfair advantage?
11

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Case
Production?
Big
Scores?
Location?
High Bottle
Prices?
Demographic
Focus?
Do they have an unfair advantage?
12

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How do
they do it?

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3x more ecommerce sales
14
9%
24%
41%
26%
Admin Club POS Ecomm
13%
23%
57%
7%
3x

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4x larger email list size
15
4944 6010
21608
29100
2014 2015
Bottom 80% Top 20%
+35%

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AOV is over $100 more
16
$209 $212
$235
$330 $335
$363
2013 2014 2015
Bottom 80% Top 20%

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50% less shipping fees
17
10.37%
5.89%
Bottom 80% Top 20%
Shipping as a % of Sales

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How YOU
can do it

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1. Use offline to drive online sales
2. Send better email
3. Give them a reason to buy more
4. Focus on the user experience
5. The experience doesn’t end after checkout
How YOU can do it

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Offline to online, a case study
20
$2,500 in net new ecom sales
63% opened, 7.5% converted
89 emails captured and sent.
89 TR Transactions ($7500).

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What’s the value of an action email…
21
TR transactions/ day 50
Email capture rate 50%
Action email sent 25
7.5% conversion rate 1.875
AOV $318
Net new ecom sales (day) $ 596.25
New sales, annualized $ 131,175.00

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Email receipts are appealing to 41% of consumers
22
41%

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How
do you
capture
emails?
?

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Pay your staff
$1 per email

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Use kiosks

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1. Use offline to drive online sales
2. Send better email
3. Give them a reason to buy more
4. Focus on the user experience
5. The experience doesn’t end after checkout
How YOU can do it

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What
makes a
great
email?
?

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Personalize

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First time
buyer
Repeat
customer
Loyal
customer
Segment your email list
29
Club
member

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Single focus

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Focus on the
subject line

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"Cellar Cab on sale until Tuesday!"
"Free shipping for 48 hours only"
"VIP party – you're invited June 1st"

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Transaction
email

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Mobile-friendly
email is essential

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Desktop
35%
Smartphone
49%
Tablet
16%
35
65% of
emails were
opened on a
smartphone
or tablet
Source: marketingland.com

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1. Use offline to drive online sales
2. Send better email
3. Give them a reason to buy more
4. Focus on the user experience
5. The experience doesn’t end after checkout
How YOU can do it

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The art of
the upsell
Buy 12 Bottles
and get shipping
included!

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Flexible
wine clubs

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Why shipping incentives?
39
Will add items to
cart to qualify for
free shipping
Will join a
loyalty program
to qualify for
free shipping
58%
31%
Will take action
to qualify for
free shipping
93%
Reason for cart
abandonment: higher
than expected
shipping costs
#1
Source: UPS Pulse of the Online Shopper Report 2014

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46Brix shipping loyalty plan
40
• Like Amazon Prime for wine
• Customers pay $79/year and
get free ground shipping on
orders from participating
wineries
• After joining, customers spend
108% more per year
$2,232
$4,640
Before 46Brix After 46Brix
Annual Order Value

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1. Use offline to drive online sales
2. Send better email
3. Give them a reason to buy more
4. Focus on the user experience
5. The experience doesn’t end after checkout
How YOU can do it

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What Makes
A Great User
Experience?
?

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Clear product pages
43
Cabernet Sauvignon
Only 3 left in stock
$24.99
Add To Cart

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Clear checkout
44

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Not Forced to Create An Account
45

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Make it easy to
buy on mobile

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Seamless
responsive
design

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People are buying online
48
Source: Deloitte 2016 Holiday Survey

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Vin65 mobile traffic
49
2010
5%
2011 2012 2013 2014 2015
10%
18%
27%
31%
35%

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Vin65 mobile & tablet traffic
50
46% of website traffic
24% of sales

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Shop your own site

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1. Use offline to drive online sales
2. Send better email
3. Give them a reason to buy more
4. Focus on the user experience
5. The experience doesn’t end after checkout
How YOU can do it

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Order confirmation
53

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Shipping confirmation
54

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Delivery date confirmation
55

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Delivery exemption
56

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Real-time shipment redirect
57

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SMS messaging
58

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3x Ecommerce Sales
4x Email List Size
AOV is over $100 more
50% Less Shipping Fees
Winery Ecommerce 101 Recap
What makes the
top 20% different?
1. Use Offline to Drive
Online Sales
2. Send Better Email
3. Give Them a Reason to
Buy More
4. Focus on the User
Experience
5. Don’t let it end after
Checkout!
What can you do
to compete?

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Where do I start?
60
Put your brand online
vin65.com/Free-Sites

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Thank You!
Kevin Williams: kevin@vin65.Com