Three Trends in Modern eCommerce

and their effect on consumer expectations and your fulfillment operations.

Boy, Amazon and Zappos are really messing things up for all of us!

Customization Fast Shipping Free Shipping

Customization

Proprietary and Confidential Do not distribute

11% more per shipment

Vin65 User Choice Clubs

Flexible Delivery Options

Fast Shipping

Actual Delivery Times: Zappos.com- 2.0 days Newegg.com- 2.3 days HPShopping.com- 2.5 days Amazon.com- 2.7 days Sonystyle.com- 2.8 days

Site listed: 4-5 days 4-7 days 5-7 days 3-5 days 5-7 days
Proprietary and Confidential Do not distribute

Proprietary and Confidential Do not distribute

 2012 Acquires Kiva Systems

2013 20 new warehouses 8 in CA, 4 in TX, 2 in NY Metro

Paperless

Warehouse

CA wineries Geographically Disadvantaged

58% of US is four or more business days.

Solution: move product closer to consumers

85% of US in two days or less.

Proprietary and Confidential Do not distribute

Four ways to accelerate your time to delivery

1. 2. 3. 4. Get your stuff closer to the customer. Eliminate technical bottlenecks. Work with provider to get later cutoff times. If you cant speed up, be clear about delivery timesand beat them.

Free Shipping

 2009: 52% 2012: 90%

-practical eCommerce survey

2012: 90%

 71% more likely to buy from retailers that offer free shipping.
Deloitte Consulting 2012 Holiday Survey.

20% off Equivalent

$19.99

$21.99

$24.99

$29.99

Customization Fast Shipping Free Shipping

Four questions to ask about your fulfillment process.

1. 2. 3. 4. What are you doing to increase order accuracy? What can we do to increase speed to delivery? What can we do to control our shipping costs? What can you do to improve the availability and timeliness of data for my consumers?

jim.agger@winedirect.com 707 603-4020