New fulfilment service targets online wine retailers
ASX-listed Digital Wine Ventures is launching a specialised wine distribution service to help retailers meet the growing demand for same-day delivery.
Through a partnership with Australia Post, the service, which is called WineDepot, has access to four distribution centres in Sydney, Melbourne, Brisbane and Perth, where it plans to hold a wide range of inventory on consignment, which can be accessed by a range of sales channels.
Orders processed through the WineDepot platform will be routed to the depot closest to the delivery address, where they will be picked, packed and drop-shipped to the end customer.
The DCs will be replenished on a bi-weekly basis from WineDepot’s regional bulk storage facilities on behalf of suppliers.
According to Digital Wine Ventures CEO Dean Taylor (pictured), who founded and ran the online wine business Cracka Wines, WineDepot is in talks with a “large number” of existing retailers and expects to announce who it will be working with over the coming weeks.
Taylor said the service is ideal for online retailers and marketplaces looking to expand their range without having to hold any inventory.
He said WineDepot’s ability to stock a wide range of wine will differentiate it from existing retailers and service providers promising same-day drinks delivery.
“Those retailers currently offering same-day and or on-demand delivery such as Jimmy Brings and Tipple are typically drawing from a very limited product range sold at the full RRP. They are an extension of the convenience offered by purchasing at a local bottle shop,” Taylor told Internet Retailing.
“What we are offering is that same level of service but on an extended range of products, which can be purchased by the bottle drawing off supplier inventory reserves held on consignment.
“While it will be up to the retailer to set the prices, I expect them to be more competitive than the on-demand services.”
Taylor added that most retailers currently operate from a single warehouse location in either Sydney or Melbourne, making it all but impossible to offer same-day delivery nationwide.
“So in that regard we see ourselves as providing most retailers with an extension to their existing logistics capability,” Taylor said.
Australia Post is providing the warehouses, staffing, backend IT systems and infrastructure for WineDepot through its third-party logistics provider, Fulfilio.