Amazon to start selling wine
Posted
Mar 07 2008, 09:08 AM
by
Kim Peterson

Selling wine online in this country is pretty screwed up. Or, as the Financial Times so elegantly stated, it's "a business fraught with regulatory complexities and littered with the wreckage of previous failures."
But Amazon is up for the task, and is recruiting a senior wine buyer on its site. I'd like to volunteer, but my knowledge of wine basically comes from what I learned in "Sideways." Amazon has been interested in this area for some time, having spent $30 million nine years ago for a 45% stake of Wineshopper.com. Oops, Wineshopper was folded into Wine.com the next year.
Maybe Amazon can help straighten out the convoluted mess that is selling wine online. Retailers can only ship wine to 26 states. Wineries and retailers follow different rules. FreetheGrapes.org has a nice summary of this complex issue. And the competition is nasty. Online wine retailer Wine.com went so far as to conduct its own sting operation, telling state regulators whenever it found that its rivals were violating wine-shipping laws.
Amazon already sells groceries and gourmet foods on its site, including $160 gift baskets (sans wine) from partner Wine.com. The grocery category is doing well enough that Amazon is testing a fresh foods delivery service, called Amazon Fresh, in Seattle. Wine and beer will likely be included in that service in the future.
Amazon shares fell more than 3% Thursday to close at $62.74.