Esther Mobley on Shipping Costs, Supporting Small Wineries

[R_Frankel]

I decided that I’d just add a flat fee of $20 for all shippings below a case, and include shipping with full case buys, and just eat the difference myself. It’s painful, but I think it results in less abandoned carts. A case to NY or CT is $55+, so I end up eating that for a case. A single bottle is easily $17-22 in shipping, still.

Thanks Adam, this is a great example of how I hope/expect wineries to think about shipping costs.

Consumers pay attention to shipping costs. Most want ‘deals’ on shipping - low price or free. So I expect wineries to accept this and do a little price management/market testing. Even a little spreadsheet fu can help a winery figure out how to maximize revenue somewhat. If your wine is $4 more and your shipping is $4 less, do you sell more wine? Discount the wine on a case or discount the shipping on a case, which sells more? Total cost is what matters ultimately. To small wineries I say: experiment and use a little marketing magic if that will help you make more money . I know market/pricing testing is not always a natural part of craft winemakers’ DNA but that’s what it takes to run a successful business.

For me, I don’t really care that much within reason, but would probably skip paying $10 to ship a bottle that cost $20, doesn’t feel right, even if it might be irrational from a total cost perspective.

[Jim_Anderson]

If you are ordering single bottles or even two, then yes.

A 12/bottle shipper(pulp) costs us $6.00. A 1 or 2 bottle shipper costs $3.50.

Adult signature on a 12 bottle case: $6.50
Adult signature on 1 or 2: $6.50

UPS/FedEx charges us $40-85 for a 12 bottle case depending upon where you are in the country. (Including said adult signature)
They charge us $20-35 for 1 to 2 bottles.

It’s cost prohibitive for me to ship 1-2 bottles, so we hold orders until we have 6 or 12 bottle orders for most of our customers.

I hate paying for shipping, but it’s in there one way or the other. Folding it in, just makes it harder for the consumer to see how much UPS and FedEx take as a cut.

Wow, $6.50 for adult signature? That’s wild. Is that waived or reduced if you ship to a business address? I suppose the logic is a much higher rate of delivery failure and therefore extra trips to the address, since the package can’t be left. Still, it seems really high.

It’s also negotiated rates based on yearly shipping volumes. Ask 10 Oregon wineries what they pay per signature and you will likely get 10 different answers.

[mmarcellus]

All this discussion just illustrates more clearly the pure madness that is wine.com’s StewardShip deal.

I fully expect it to be revamped or ended.

I disagree. If you look at their prices, shipping is basically built in and then some. They don’t lose money on Stewardship any more than Amazon loses money on Prime.

Now all those coupons are another story…

[patrick_c_albright]

And small businesses die from sentiments like yours.

But at least you go to the gym.

I’ve run into a number of places charging $20/btl to ship ground. Do you think that’s reasonable?

If you are ordering single bottles or even two, then yes.

A 12/bottle shipper(pulp) costs us $6.00. A 1 or 2 bottle shipper costs $3.50.

Adult signature on a 12 bottle case: $6.50
Adult signature on 1 or 2: $6.50

UPS/FedEx charges us $40-85 for a 12 bottle case depending upon where you are in the country. (Including said adult signature)
They charge us $20-35 for 1 to 2 bottles.

It’s cost prohibitive for me to ship 1-2 bottles, so we hold orders until we have 6 or 12 bottle orders for most of our customers.

I hate paying for shipping, but it’s in there one way or the other. Folding it in, just makes it harder for the consumer to see how much UPS and FedEx take as a cut.

Add in an additional $4 or $5 for residential delivery as well.

[MChang]

So if someone requests something to be shipper directly to a fedex office that’s cheaper for the shipper?

[patrick_c_albright]

So if someone requests something to be shipper directly to a fedex office that’s cheaper for the shipper?

No residential surcharge.

That said, not sure if most retailers/wineries are breaking down the shipping charges to that extent.
They probably have a baseline charge and if it goes to a business maybe they gain a little ground.

[Steve_Crawford]

i would be content with not being forced to take 2 day shipping and being charged out of state sales tax (most dont) and tax on shipping (some do).

[David_Bu3ker]

i would be content with not being forced to take 2 day shipping and being charged out of state sales tax (most dont) and tax on shipping (some do).

Very few require 2 day shipping. Who is forcing you into that?

The sales tax collection is required. There was a Supreme Court decision about that.

[Ian_Dorin]

How does WTSO offer free shipping?

While most of what they have is not of interest to me when they do have something I want it is already a good price but when you buy 4 or whatever it is you get free shipping.

What do you think they are paying for some of that stuff?

[John_Glas]

What do you think they are paying for some of that stuff?

For the lesser known names probably half of what they are selling it for however the more mainstream wines I don’t see how they are making much if they are throwing in free shipping.

[Al_Osterheld]

They are selling stuff that is getting dumped, buying for a low enough price to build shipping costs into their sales prices.

-Al

[Andrew_K]

FYI, I recently had 5 cases of wine shipped from France to UK for 48€.

The ridiculous US shipping costs are another byproduct of the Prohibition Mafia regime.

[patrick_c_albright]

FYI, I recently had 5 cases of wine shipped from France to UK for 48€.

The ridiculous US shipping costs are another byproduct of the Prohibition Mafia regime.

That is pretty cheap considering the VAT is 8€ alone.

Also, you have to remember, the distance from Paris to London is like Indianapolis to Chicago.

Not saying that is not very inexpensive though.

[patrick_c_albright]

And Brexit is going to throw a wrench into that shipment shortly.

[Eric_White]

They are selling stuff that is getting dumped, buying for a low enough price to build shipping costs into their sales prices.

-Al

pretty simple, really

[Dennis_Borczon]

FYI, I recently had 5 cases of wine shipped from France to UK for 48€.

The ridiculous US shipping costs are another byproduct of the Prohibition Mafia regime.

That is pretty cheap considering the VAT is 8€ alone.

Also, you have to remember, the distance from Paris to London is like Indianapolis to Chicago.

Not saying that is not very inexpensive though.

There is this thing called the English Channel in the way

[Rodrigo_B]

I try to buy directly from producers as much as I can, but I do struggle sometimes when faced with shipping costs.

The situation I struggle with most is when I can find the same wine locally at the same price the producer offers DTC. I struggle with whether to pay for the shipping and buy it directly from the producer, or going to the retailer to pick up the wines to avoid the shipping costs altogether.

I know the economics of retailers and producers selling DTC are different, but from the point of view of a consumer, the product is the same, but the all-in cost to the consumer is different. It’s hard not to go with the cheaper all-in cost, especially if there is a significant difference in all-in cost.

If the producer’s shipping costs seem reasonable, I’ll often pay a bit more and go with them, but my resources are finite and every $25-$50 I pay in shipping in those situations is money I could be spending (or not) elsewhere.

[Karl_K]

I recently shipped two bottles FedEx VA to WA and the
shipping cost ground was $29.

That does not include my time or the packaging.

[John_Glas]

They are selling stuff that is getting dumped, buying for a low enough price to build shipping costs into their sales prices.

-Al

Yes for a large majority of what they sell WTSO is getting a good deal. The 2009 Cristal with free shipping today is not one of those wines getting dumped nor is the large amount of Sojourn they have been selling.

[larry_schaffer]

I try to buy directly from producers as much as I can, but I do struggle sometimes when faced with shipping costs.

The situation I struggle with most is when I can find the same wine locally at the same price the producer offers DTC. I struggle with whether to pay for the shipping and buy it directly from the producer, or going to the retailer to pick up the wines to avoid the shipping costs altogether.

I know the economics of retailers and producers selling DTC are different, but from the point of view of a consumer, the product is the same, but the all-in cost to the consumer is different. It’s hard not to go with the cheaper all-in cost, especially if there is a significant difference in all-in cost.

If the producer’s shipping costs seem reasonable, I’ll often pay a bit more and go with them, but my resources are finite and every $25-$50 I pay in shipping in those situations is money I could be spending (or not) elsewhere.

I think those are fair and very valid points. It’s one thing to support a producer but another to do at a financial ‘loss’ to you, the consumer.

Wineries definitely need to be ‘mindful’ of that IMHO.

Cheers.