Shoppers baulk at online retail charges

Wine shoppers are shying away from ordering online because they believe it is too expensive and refuse to pay for deliveries, according to a survey for the Wine and Spirit Trade Association.

The survey by YouGov shows that only 14% of UK adults currently buy wine online, but a third say they would consider doing so in the future.

Of those who do not currently buy online, 25% say it is too expensive, 21% don’t want to pay for delivery and 14% are unwilling to wait for delivery.

Of those who do buy online, 51% prefer to select their own bottles or cases, while 24% prefer mixed cases.

The average online spend is £5.15 per bottle, with women (£5.25) spending slightly more on average than men (£5.08).

WSTA chief executive Jeremy Beadles said: “These figures show there is clearly scope for growth in online wine sales.

“Interestingly, while the figures show fewer 18 to 24 year olds currently buy wine online, a larger proportion of this age group and 25 to 34 years olds say they would consider purchasing via the internet in the future.”

Retailers admit that delivery costs can indeed put potential customers off, but adjusting your business model to minimise the impact is the best way to attract new business.

A spokesperson for online retailer Naked Wines told the drinks business: "When we launched, we knew we would only survive if we could deliver genuinely better wines for genuinely less money than our competitors – and the only way to do that was to come up with a game changing model.
 
The speed and cost of our delivery service is a key point of difference – and our next day delivery for £4.99 accounts for over 90% of sales.
 
But the way in which we source and market our wines is another key factor. Buying wine online for the first time does require a leap of faith, but the internet can do what a high-street store can’t. Thousands of wine drinkers can get together to invest in a wine before it’s even been made – which in turn drives down cost for them, and the winemaker. Plus, customers don’t just have to take our word for it – they can rely on 1,000s of un-edited customer ratings and reviews.
 
"In our first two years, we’ve recruited over 100,000 customers who between them invest £1million a month – helping 22 winemakers to set up shop and create 85 new wines. So as long as the price and the model works, there’s undoubtedly an online appetite out there."

Alan Lodge, 15.12.2010