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WineDirect Blog

Your Source for All Things DTC

April 25, 2016 | Jim Agger

Increase sales by offering shipping incentives

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Do what the top 20% of wineries selling DTC are doing. 

I spoke about shipping incentives at the Napa Roadshow last week.  Offering them is one way the top 20% of wineries selling DTC get to be in the top 20%.  If you're still not convinced, here's more information.

In today's online retail environment, shipping incentives are absolutely necessary. In fact, the 2015 UPS Online Shopping survey of 5,000 U.S. consumers and conducted with comScore showed free shipping remains the most important option during checkout for 77 percent of online shoppers. Additionally, 60 percent of online shoppers have added items to their cart to qualify for free shipping.

A priority for wineries
Reduced or shipping included is no longer considered a "perk" by consumers. As outlined in our white paper, "Shipping Incentives: How to Offer Them Without Breaking the Bank," there are three reasons why wineries should prioritize offering shipping incentives:

  1. Customers expect them: The UPS Online Shopping Study is evidence of this fact.
  2. Shipping incentives reduce shopping cart abandonment: As cited in our white paper, the UPS and comScore report, "Pulse of the Online Shopper," showed shipping costs are the primary reason for shopping cart abandonment.
  3. Shipping incentives drive increased sales: Our white paper draws on data from a recent study by Consumer Research Intelligence Partners, which found Amazon Prime members spend 2.4 times more than they would have spent without Amazon Prime benefits, which offer free shipping.

How to implement shipping incentives
Shipping incentives can have a positive impact on the wine industry in particular, and our white paper reveals valuable data that speaks to this point. However, reducing shipping costs can be difficult for wineries, since these businesses are not legally permitted to ship wine for free. Wineries can increase online wine sales by employing the following strategies to offer shipping incentives to their guests:

  1. Offer shipping incentives that are activated once the shopper reaches a minimum price threshold
  2. Implement a flat rate shipping
  3. Include shipping on all club member purchases
  4. Create an annual membership program
  5. Move products closer to the consumer to reduce shipping costs

Shipping as customer engagement
Shipping incentives offer a unique opportunity for wineries to provide a great experience to their customers.  Consider reaching out to regular customers and offering them the benefits of wine club membership that can include shipping incentives.

 

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