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Cross culture study on social wholesaling possibilities using social media to distribute wine

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This study looks at social wholesaling of wine, where individuals agree to store food/wine on their premises for pick-up by customers who are part of a greater wine social network. In theory, and according to current practices (excluding sales via social media) a social wholesaler can store between 60 and 600 bottles, the equivalent of a pallet, in cellar conditions (acceptable temperature, humidity and brightness conditions).

palet

A pallet containing 600 bottles of wine

The accepted selling unit in the world of wine is 12 bottles, i.e., a case. If an average customer buys one or two boxes of 12 bottles via social media and if a typical group of buyers consists of 5 people who each take 2 boxes (24 bottles), the social wholesaler must be able to store up to 120 bottles.

Under this system, the wine producer or Online Wine Vendor is noted as the “depositary”. This system would allow consumers to obtain wines at prices identical to those at the winery while greatly reducing transport costs for the wine producer. It would help to increase sales and cover underserved areas in terms of physical distribution.

gps

This system is made possible by a Global Positioning System interface available with social media or through specific apps that show the location of all the individuals acting as wine intermediaries for the other network members.

gps

Additionally, word-of-mouth can help to increase the size of the wine network.

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