Amazon , probably the worlds largest online retailer,  has decided to pull the plug on online wine sales. Not even this gigantic online firm, which has been seen as the masters of on-line shopping and logistics, could overcome the logistical nightmares of the individual and different American State wine laws.

The wine sales pilot, which the e-commerce giant launched last year, was intended to sell wine from California’s Napa Valley and other U.S. regions.

The end of the program may have been related to financial troubles at partner New Vine Logistics, which had been tapped to handle shipments for Amazon. Over the summer, that company suspended operations amid financial problems, but then later got new investment from Inertia Beverage Group.

Amazon faced an onerous task to comply with a patchwork of state laws governing the direct shipping of wine to consumers. More than 35 states permit some form of direct shipping, but laws often vary. Some states, for instance, restrict how many wine bottles a person can order, or require that consumers pick up wine shipments at a retail outlet.

The recession and the changing buying patterns of American wine consumers may also have played a role in this failure to launch. The cost and admin of shipping wine lends itself to higher priced wines and the recession had the effect that the demand for higher priced wines has declined.

It will be interesting to see the official Amazon comments on why they decided to pull the plug on this wine venture.

Source: wsj.com