Amazon.com considered to be the largest online retail company and leader in customer service, has announced they are phasing out their Amazon Wines Marketplace at the end of 2017. This decision is a based on their recent partnership with Whole Foods and regulatory hurdles that challenged the business. Wine will be offered through their other channels of Amazon Fresh, Prime Now, and Whole Foods Market.
Color Wine was weeks out from making its launch on to the Amazon Wine platform. We were ready and excited for the exposure this could give the company. And then just like that, all plans shattered. Initially we were crushed. We saw this as a major blow to our online selling and distribution, however, then we saw the upside. You might be wondering how this is positive news for us? The reason being the same as what makes Amazon so great. Every small winery is either on or striving to be on the Amazon Wine platform. We were late to join the party, therefore, many companies already had established a presence and combatted the learning curve associated. The closure acts as a washout for the entire industry. It disrupts and challenges company’s current business models.
No question Amazon Wine would have helped sales, exposure, and overall growth for the company. However, we have been sustainable without the partnership and have already implemented a solution. Color Wine’s online orders will be fulfilled by Chateau Diana Winery and Marketplace (www.chateaud.com) which ships nationwide.
This is all part of a startup. It forces you to pivot and be flexible as a company. You have to be quick to action and can never become complacent with the business. The washout ultimately allows us to capture previously controlled market share.