New York retailers get online

Wines & Vines, Nov, 2001 by Thomas Pellechia

Ian Griffith oversees the Web site for 67 Wine and Spirits, an uptown New York City retailer. He agrees with Comroy when he says, "It is not realistic to expect we will drive sales on our Web site. It is mostly for promotion and for information, plus we run a separate site for wine auctions.

Any e-mail contact that 67wine.com makes with customers is targeted to reinforce the concept of a knowledgeable staff at the store, almost guiding potential customers to pay a visit. And, according to Griffith, 67wine.com has settled for lower standards so that the site is usable for just about all who sign on-- complicated uploading graphics are at a minimum.

What Does The Future Cost?

After paying initial connection fees, which are relatively low, selling wine at retail on the Internet quickly becomes expensive. The money goes to an upgrade to DSL technology, security encryption software and to credit card processing fees, which are added to bank and private card company processing fees. And then there is the expensive shopping cart technology, the innovation that allows customers to "fill" a cart online without having to bounce back and forth between the inventory list and an order form. But the combined Internet sales records of Astor Place and 67 Wine and Spirits probably would not justify investing in the shopping cart software. Both stores, as well as Jeff Hock at winesby.com, save processing money by accepting orders from an online order form or by e-mail, and then they process orders off line through the cash register. The orders are followed up with a confirming e-mail. But even this system costs money as it takes up extra staff time.

Though the success of online wine retailing in New York has yet to prove definitive, those who ignore the general trend toward online retailing will likely pay a price. That is what Darrin Siegfried believes and it is why he had the Internet in his plan when he opened his shop in one of Brooklyn's fast-changing, old neighborhoods. To Siegfried, his store, Red, White and Bubbly, will grow vertically, and that means he must also reach out to potential customers on the Internet. But he echoes much of what other wine retailers say.

"I believe that Internet wine customers will fall into two categories: the collectors and the regular customers who have already visited the store and can trust shopping online."

Personal Net Experience

Six months ago, and after a protracted battle with a community board, I received a license to sell wine at my newly-established bricks-and-mortar retail shop located in Manhattan's East Village neighborhood. After a brief past experience with marketing and selling on the Internet, I was unconvinced that it was a tool I could use to sell wine. In fact, I believed it was best for my shop if I used the Internet as a tool for imparting information only. And then, after talking with our lawyer about the SLA's attitude toward the Internet, my partner and I were sure it was best to drop the subject from our license application.