How to Start an Online Store and Club to Sell During COVID-19
With wineries, breweries, and other craft producers across the nation closing their doors to help stop the spread of COVID-19, many are now figuring out how to open their doors to online sales.
It’s currently ill-advised (and in some places, prohibited) for consumers to travel to public places. No wonder so many subscription services and eCommerce businesses are seeing a surge. Craft producers, in particular, are already seeing increased interest and sales through online DTC sales. A VineSpring client recently told us that they are currently in their “best month ever” and are experiencing the impact eCommerce and clubs can make.
About 60 percent of the average small winery’s revenue comes from DTC sales. We saw in the 2020 DTC Wine Shipping report that the majority of sales come from tasting room visits. Now that brick and mortar visits are no longer an option in most locations, it’s a good idea for craft producers to build and/or improve their current online sales channels if they want to continue to sell directly to customers.
We’ve helped hundreds of craft producers launch online storefronts and roll out successful club models since 2010. Here’s what we’ve learned along the way. Hopefully, some of our experience can help you get the most out of eCommerce and online sales during this weird time.
Choose Your Online Selection
Before jumping in and creating your online store, map out what makes sense for you to sell online. Ask yourself questions like:
What does inventory look like? Are there any obvious holes or abundances?
Is there an oversupply of an item that could be promoted and creatively packaged?
What are the wine costs versus shipping costs? Do you want to put minimums or maximums for orders in place?
Are there limited edition items or items in high demand that could be set aside for loyal customers and club members?
Are there packages that you would like to offer?
Do you have merchandise that you could put up for sale?
What is your shipping capacity? How are you going to deliver? Do you need to hire a fulfillment partner?
It may not be worth it to offer an item online that is close to being depleted. On the other hand, if you have an oversupply of an item, now could be the time to offer it on special.
The COVID-19 crisis is also an important time to give gratitude to the people that have historically supported your business and will hopefully continue to support you through this time. Consider how you could thank your customers and members for their continued support. Can you offer them a special selection first? Or give them a special deal on a package?
Remember, many people are dealing with financial woes and instability. It’s no small gesture to acknowledge that, thank those who support your business, and give genuine well-wishes to those who cannot.
Cover the Compliance Bases
Now that you know what you want to sell online, it’s time to make sure that your business maintains compliance. Selling alcohol direct-to-consumer requires a consideration of compliance. You must obtain and maintain the proper licenses and registrations for each state that you plan on selling in.
Selling within your own state is the easiest way to go. There’s still compliance to manage, but it’s less cumbersome. If you plan to sell outside of your home state there’s a lot to consider.
Check out our article on the basics of compliance and if you have questions consult an expert.
Website Branding and Functionality
You won’t have much luck selling online if you don’t have an easy-to-use website and an eCommerce store. Remember, your website is your virtual tasting room. Exhibit the same character and aesthetic across your site that you deliver when people walk into your physical tasting room.
Providing an excellent user experience (UX) is key. Understanding and valuing the foundational elements and intents behind great UX can transform how you approach all areas of your business. The benefit of good UX is increased customer loyalty and more sales!
For more details on how to improve your UX, download our UX guide for craft producers.
Platforms like SquareSpace and WordPress have made it easier for non-developers to create beautiful websites. But, if you’d rather leave it up to the experts, there are some exceptional agencies that focus on the beverage alcohol industry. Below are a few that we recommend and you can find more information and examples on our Partner page:
Choosing an eCommerce Provider
This is the core of your DTC sales channel in a COVID-19 world. Your online store is something we’re pretty connected to, given this is our specialty. But we’ll avoid going into a pitch about our eCommerce platform and instead simply share our thoughts on what to look for in an eCommerce provider.
Qualities to Look For in Your eCommerce Platform
When shopping for a eCommerce platform, there are a few qualities we recommend paying attention to:
Website Integration
Will your website and storefront seamlessly integrate? Make sure that the store you choose offers a direct integration with most website hosting platforms like SquareSpace and WordPress.
Ease of Use
Craft producers don’t have time to learn complicated systems. Make sure whatever you choose has an intuitive interface that is easy to learn.
Innovation
Technology is changing fast and you want to partner with a platform that is always improving. When you choose best-in-class solutions, you have the benefit of what each platform provides today, but also any future updates.
Trust
VineSpring’s team of integration partners are industry leaders with sustainable business models. Be confident that your platform will be around for the long-term.
Flexibility
Do you prefer to have a platform that allows you to control and configure your ideal customer experience. As an example, VineSpring offers hub-and-spoke technology to elevate the customer experience and automate internal processes. Learn the benefits of the hub-and-spoke model.
Accessibility
What is the barrier to entry like? How hard is it to get started? Right now it’s important to be able to get up and running quickly. Make sure that whatever option you choose, it’s easy to get started.
Launch Club Programs and Build Your Audience
Structure Your Club
Once you have your website and storefront up and running, it’s time to dive into my favorite part, clubs! Clubs provide flexibility, adaptability, efficiency, and reliability for your business while allowing for a great way to connect more directly with customers.
The value of membership is tremendous and turns an occasional visitor into a repeat customer. That means spending less time finding distributors or selling to restaurants and wine shops. Instead, you can focus on building a unique experience for your club members.
When structuring your wine club, it is important to keep it simple. The more complicated you make your club, the more difficult and time consuming it will be to create and process orders. Especially if you want to provide the option of custom clubs, it pays to start with a simple foundation. Below are common configurations:
Red Club, White Club, or Mix of Red and White
3, 6, or 12 bottles
Monthly, quarterly, or yearly shipments
To learn more about how customer clubs works, watch this 3-Minute Challenge video.
Promotion and Marketing
Once your eCommerce store is live and your club is established, it’s time to get the word out! Normally a first step we’d discuss is selling in the tasting room, but with COVID-19, we need to think virtually.
Your Website
Don’t underestimate the importance of your website. Make sure that it’s easy to find, fast, simple to navigate, on-brand, and super clear how to sign up for your club.
Social Media
Social media is a great way to increase your direct sales through your website and increase awareness about your winery. Focus on customer features, education about your business, and contest/giveaways. Be aware that there are some restrictions around alcohol advertising so check what current rules are in place if you plan to do paid promotions. Here’s a resource from the Wine Institute.
Review Sites
Google My Business, Yelp, and Trip Advisor are common sites that people use to find businesses to visit. Claiming your business on these sites and actively monitoring and engaging with users can be the difference of thousands of dollars in new revenue and club members.
Email
Email can be used to attract, convert, and nurture prospects and customers. There are tons of interesting ways to connect with non-club members to pique their interest in your wine and convert them to a wine club member.
Enroll in the Secrets to Successful Wine Clubs Series for tips on setting up clubs and building audiences.
Promotions During COVID-19
The global pandemic is challenging all types of businesses to think differently about their message and forcing a move to digital marketing. Before you send anything out, review your message to make sure it aligns with the current time. A message that encourages large gatherings or other off-limits activities during COVID-19 will be looked upon as tone deaf.
Below are tips, ideas, and examples of different approaches that can help grow your business during these uncertain times.
Turn Your In-Person Gatherings into Digital Tastings and Tours
Don’t forget to turn off any scheduled communications that encourage in-person tastings, tours or dinners! Transitioning to virtual gatherings is the way to go.
Monochrome, a VineSpring customer, recently sent out an email with the subject line, “Virtual Wine Tasting: Now Taking Appointments!” They alerted their email list and social followers that they are taking appointments, starting immediately, and their goal is to replicate the experience at Monochrome’s tasting room in Paso Robles. You can book a virtual appointment the same way you would as if you were booking an in-person appointment.
Offer Resources That Complement Wine
Many people have taken up cooking or are ordering take-out to help support local restaurants. Remind your audience that they can have wine shipped to their door and offer foods or recipe ideas that pair well with your products.
VineSpring customer, Poe Wines recently sent out an email that shares a recipe from a local chef that pairs nicely with their sparkling rosé. Not only are they giving their audience a great recipe, but they are also supporting their local economy, and linking to their delicious wines.
Reduced or Free Shipping
We’ve seen many craft producers, like VineSpring client K & M Wines, either reduce or offer free shipping with a minimum purchase. They expressed gratitude towards customers for supporting them during these challenging times, offered wine suggestions, and extended a discount and free shipping on orders of six bottles or more.
Offer Specials for Different Customer Levels
We’ve seen some craft producers offer a discount to everyone and an even steeper discount to club members. This offer get’s people in the door (digitally, of course) and then incentivizes them to join. Besides discounts, you can also offer club members special bottles that are only available to club members. See an example from Banshee wines.
Breweries Open Grab-and-Go Options and Launch Loyalty Clubs
Without the option to pour pints or ship, many breweries have turned to grab-and-go services. From growlers to regular cans and bottles, breweries are keeping things going while their customers feel good about supporting their local brew pub (and drinking beer, of course.) If you don’t have a beer club yet, now could be the time to launch a program to further financial stability and reward loyal customers.
Need a Hand? We Can Help.
There has never been a better time to start an online DTC program! We’re here for you and are happy to provide additional resources. Please reach out to our team and let us know how we can help you support customers during COVID-19 and continue to grow your business.
