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MAY NEWS Amazon Eager to Build Wine Market VP of marketplace details web retail at WiVi P aso Robles, Calif.—Amazon is committed to wine for a "long, long time," says Peter Faricy, the executive in charge of the firm's marketplace, who adds the web retailer is enjoying success with its latest foray into the wine business. Opening the second day of the WiVi conference held March 19-20, Faricy said Amazon is now working with "hundreds" of wineries to sell their wine. During a question-and-answer session with Wine Business Monthly editor Cyril Penn, Faricy described Amazon's wine trade in only general terms, saying he could not disclose any specifics such as sales figures or the exact number of wineries who are working with the web retailer. Faricy did say that since Amazon launched its wine segment in November 2012 with more than 200 wineries, it has averaged about 20 to 25 new wineries per week. "We've been super pleased with the reception so far," he said. Amazon recently added Texas and now offers shipping to 16 states and Washington, D.C. He said the site is working as fast as possible to add other states while ensuring complete compliance. Under its current model, Amazon will never handle wine directly, relying instead on the wineries to handle fulfillment and shipping. Even if a winery can legally ship to consumers in a state not currently served by Amazon's wine marketplace, it won't be able to sell wine to those consumers Amazon's Peter Faricy speaks to Wine Business Monthly editor Cyril Penn in Paso Robles. through Amazon. This will be Amazon's third venture into the wine business following two previous failed attempts with partner firms that couldn't overcome the compliance challenges of shipping wine. Faricy said the site currently has wine from California, Washington, Oregon and New York, but he wants to expand its offerings of both domestic and international wines. "We want every single winery there is to sign up for Amazon Marketplace," he said. "We want every single winery there is to sign up for Amazon Marketplace." Peter Faricy Amazon is acting as a portal for consumers to find wines, but it's still up to the winery to set prices and close the sale. Currently Amazon is waiving regular fees for wineries that join the marketplace, and for the indefinite future any winery that joins with Amazon would only have to pay a "referral" fee of about 15% of the purchase price. In exchange for the fees, Faricy said wineries enjoy Amazon's huge consumer base and online sales support. The firm also gives wineries a place to showcase their wine and tell their story to consumers they may not normally get a chance to reach. Faricy said wineries have reported back to Amazon that many of the sales recorded through the website are to new customers not already in their sales records. Being able to leverage Amazon's vast consumer reach with its history of online retail makes it a better choice for a winery than other online retailers, Faricy said. Amazon also ensures each winery has plenty of space for photos and brand information as well as the background of the winery. "They get a chance to tell their own story," he said. —Andrew Adams 18 w in e S & v i ne S M AY 2 0 1 3