Selling wine, beer and spirits online is big business in Australia. Industry revenue grew 16.7% annually between 2015 and 2020 to reach $1.3 billion, and it’s predicted to nearly double to $2.2 billion by 2025, according to IBISWorld.
One of the main drivers of this growth is consumers’ demand for convenience and the rise of shipping platforms like Shippit, which have made it possible for businesses to send cases or single units of alcohol to the customer’s doorstep quickly and cost-effectively.
Other drivers include the shift towards premium brands and new product trends, such as hard seltzers, which have helped boost industry revenue despite a steady decrease in per capita alcohol consumption over the past five years as more people avoid drinking for health reasons.
With Endeavour Group, the company behind Dan Murphy’s and BWS, controlling 46.6% of the market, it can be tough for smaller businesses to compete.
But niche and discount providers have still managed to take some market share off of the dominant player in recent years. And further improvements to online sales and delivery systems are expected to create more opportunities for retailers to grow.
Here are a few must-haves to succeed in the online liquor retailer industry.
Get shipping right
The convenience of having wine, beer and spirits delivered to your door is one of the key growth drivers in the industry, so retailers need to ensure they get shipping right. Working with carriers that have experience shipping fragile items like wine or whisky bottles is crucial.
As a multi-carrier platform, Shippit connects retailers with a range of delivery partners that specialise in everything from shipping fragile items to shipping bulky items. There are also several same-day delivery providers so you can compete with the big chains that offer speedy click-and-collect.
Stay up-to-date on trends
In case you haven’t heard, Aperol Spritzes are out and hard seltzers are in. Liquor trends, like food and fashion trends, spread quickly around the world, and keeping up with these trends is crucial to offer the types of products that customers want to buy.
When it comes to wine trends, experts are predicting the rise of rose in winter and drops from Portugal, while online sales of exotic beverages, such as sake and soju, are forecast to continue.
Support local winemakers
While craft beer gets a lot of love in Australia, online wine sales actually dominate the market, accounting for 51% of all online alcohol sales in 2020. Here are some more wine sales statistics for you: transport and postage costs per litre of alcohol tend to be lower for wine than for beer, and purchases tend to be higher value and bought in advance for planned events.
The wine industry in Australia is also experiencing a domestic boom, following China’s implementation of tariffs on Australian wine, so there are new opportunities to position your business as supporting local manufacturing.
But no matter whether you’re selling spirits, beer or wine in Australia, if you’re selling online, convenience is key.
Learn how you can provide the ultimate convenience with on-demand delivery in this related article.