The inaugural report highlights unprecedented shifts in wine ecommerce and fulfillment over the past year, and elaborates on WineDirect’s roadmap for the future of its platform and services.
October 21, 2020, Napa, CA – A report released today by WineDirect underscores their clients’ dramatic shift to online sales channels this year, with increased revenue and order volume. With the critically important holiday sales season underway for wineries, the report powerfully highlights the incredible opportunities of ecommerce for an industry facing unprecedented challenges.
Despite the impacts Covid-19 has had on the wine industry since March 2020 — from operating at highly limited capacity to indefinite closures — WineDirect clients have seen higher revenue and substantially more orders than last year. Wineries partnering with the company for ecommerce sold $1.7 billion worth of wine direct-to-consumer (DTC) between October 1, 2019 to September 30, 2020, a 13% increase over the same period the previous year. What’s more, average order value during the six-month period of April – September 2020 was up 29% over the previous year.
“Prior to 2020 and prior to Covid, 100% of our sales were direct from the tasting room. In 2020 when we were forced to shut down, we turned to online marketing,” said WineDirect client Deepak Gulrajani, owner and winemaker for Nicholson Ranch in Sonoma, California. “ For April and May, 100% of our sales were just online. But our actual revenue numbers were higher than in a normal year when our doors were open. WineDirect provided that platform, and seamless delivery of the sale.”
For Kim Kramer, owner of Kramer Vineyards in the Willamette Valley’s Yamhill-Carlton region in Oregon, the story was similar this Spring. “Ecommerce previously made up a small sliver of sales at 5%, and is now up to 30%” she said. “I decided to lower the threshold for shipping costs and train people who were accustomed to buying face-to-face to begin purchasing online. This has resulted in a 603% increase in online sales processed through WineDirect compared to last year.”
Highlights of the report:
- DTC data showing increased revenue and order volume for wineries this year
- Preview of WineDirect’s ecommerce roadmap as they continue transforming their platform
- Stories of the social and environmental impacts WineDirect and their clients have achieved together
- Letter from WineDirect President & CEO Joe Waechter on the current state of DTC
- WineDirect client and executive team interviews in two newly released videos
- Client case studies focused on DTC ecommerce and fulfillment
- WineDirect employee spotlight features
- Best of WineDirect’s DTC Knowledge Center, including partner content
At the time of the report’s release, WineDirect President & CEO Joe Waechter shared, “In this environment we are reminded that who we are as a company is as important as what we are and the services we provide. We are more than just software and logistics.” He added, “For five years we’ve supported global literacy organization Worldreader, and today we are proud to partner with them in launching a Spanish Library sponsorship to expand access to digital books during Covid-19 schooling disruptions. We are also offsetting 100% of the carbon emissions from our fulfillment customers’ DTC packages, and this is our fourth consecutive year supporting wildfire relief from California to Australia.”
Speaking to the company’s ecommerce platform upgrade already well underway, Jim Agger, SVP Ecommerce said, “When you have more than 2,000 unique wineries using your platform, and they’re selling $1.7 billion in wine each year, it’s a tremendous responsibility and we take it very seriously.” He elaborated, noting, “We’ve decided to nearly double the size of our product and engineering team, an investment of more than $1 million in just a few months. When we look forward, our team has a product release calendar more exciting than one we’ve ever had in the history of the company.”
To view the inaugural 2020 WineDirect Impact Report, visit info.winedirect.com/impact-2020.
WineDirect is the leader in winery direct-to-consumer (DTC) services including ecommerce, point-of-sale, wine club, fulfillment and marketplace distribution solutions. In an era of rapidly increasing consumer expectations, our unique end-to-end platform enables wineries to provide next-level service and create customer relationships that last. Serving more than 2,000 wineries worldwide, WineDirect is headquartered in Napa Valley with offices in Paso Robles, CA; Santa Maria, CA; Sherwood, OR; Glenwillow, OH; Vancouver, BC; and McLaren Vale, Australia. Learn more about how we are helping wineries succeed with DTC at www.winedirect.com