Wineries Growing Ecommerce Sales, Hewlett Packard New Subscription Model, and Kroger’s Booming Online Groceries
Wineries Growing Ecommerce Sales
One industry that is surprisingly thriving in ecommerce is wine. In a recent survey from WineDirect, a fulfillment and ecommerce services provider, it was found that while a typical winery only generates 10% of revenue from online purchases, the average value for an ecommerce order is $282, which is greater than the sum of orders from wine clubs or point-of-sale transactions at winery events. “The weakness of point-of-sale average order value underscores the more leveraged nature of website orders—it is much less costly to execute a marketing email campaign to drive online sales than to staff a tasting room,” says a representative from WineDirect. Additionally, mobile is an increasingly viable method of ecommerce for wine, as mobile traffic to winery websites is poised to exceed 50% this year.
What stood out to us? Wine glass in left hand. Mobile phone in right hand ordering more wine for glass in left hand. Sip. Repeat.
Hewlett Packard Moves Products to Online Subscription Model
Facing stiff competition from Amazon and Microsoft, I.T. products manufacturer Hewlett Packard Enterprise Co. (HPE) is making its products available through cloud subscriptions. This includes all of HPE’s storage hardware, networking gear, and computer software, which will all be available through a pay-per use or subscription model by 2020. Although HPE sells about 50% of its products online, this move was largely motivated by big-name cloud vendors offering consumers accessible solutions. “We will reshape HPE and transform the market, with a new and better way to deliver as a service,” says Antonio Neri, CEO of HPE.
What stood out to us? Is this innovation or a desperate act of catch up?
Kroger’s Booming Online Grocery Sales
Kroger, America’s largest traditional supermarket chain, reported a 42% increase in online sales for its first fiscal quarter of 2019. While total revenue for the chain was up just 1.5% from last quarter, Kroger is pushing to bolster its already growing online sales, as it faces tough competition from Amazon and Walmart, who have both been offering new delivery and pickup options over the past few months. To compete, Kroger is testing autonomous deliveries in Texas and Arizona, as well as pickup and delivery services for all U.S. shoppers by the end of this year.
What stood out to us? Too busy ordering wine to buy groceries. Check back next week.
In the headlines
- Sad Nerd News: Geeky-merch site ThinkGeek to close after 20 years.
- Registered Meltdown: Target stock dips after weekend-long register outages.
- Box of Cash: Whitebox raises $5 million for its ecommerce logistics platform.
- R you ready kids?: Toys R Us will reopen stores and ecommerce one year after bankruptcy.
Before you go
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