Slides from the webinar with Jennifer Goodrich of Wineshipping.com and Alex Koral of ShipCompliant by Sovos.

1. Confidential
How to Get Ready for the DtC Holiday Shipping Season
Presenters: Jennifer Goodrich of Wineshipping.com
and
Alex Koral of ShipCompliant by Sovos
September 27, 2017

2. Confidential
Regulatory Updates
• Arizona:
– Since December 2016, DtC license is available to wineries of all sizes
• Illinois:
– Wineries must indicate their third-party fulfillment services on new and renewed license
applications
– Third-parties must file annual reports
• Oklahoma:
– In 2016 election, OK voted to allow DtC sales
– Not effective until 2018; details still being worked out
• Colorado:
– As of July, require use tax “notice and reporting” from non-collectors selling > $100k annually

3. Confidential
Regulatory Updates
• Michigan:
– As of March, removed package labeling rules
– No longer need to include DtC license #, order #, or label registration #
• Maryland:
– As of July, wines to be sold DtC must be listed when applying for a license
• Pennsylvania:
– New quarterly shipping reports were released
• South Dakota:
– As of July, requires tracking numbers on shipping reports

4. Confidential
Increased Scrutiny
State are ramping up enforcement of DtC compliance rules
• Ensure that all sales are made only by properly licensed party
– Leads to scrutiny on common carriers and third-party providers
– Changes in reporting meant to better track sales
• Ensure that point-of-sales rules are followed
– Age verification at time of sale (Michigan)
– “Not of own production” to limit imports and resales
• New York, Michigan, Illinois, Missouri, South Dakota especially
– But other states will follow suit

5. Confidential
The Trusted Partner For Direct To Consumer Wine Logistics

6. • Leader in Direct-to-Consumer Fulfillment, Storage and Transportation
• Founded in 1998 – 19 years of experience- from the garage to a National presence.
• Serving over 500+ brands
• 8 Locations:
• ‘Tri’-coastal distribution to compress logistics time – reach 98% of consumers
in 1-2 days via ground shipping.
• Flexibility- solutions to meet your requirements
• Customer Service #1
About Us
‒ Napa, CA
‒ Santa Maria, CA
‒ Paso Robles, CA
‒ Colonie, NY
‒ St. Louis, MO
‒ McMinnville, OR
‒ Tualatin, OR
‒ Medford, OR

7. • E-Commerce Growth equals more packages
– 16% growth expected this holiday
• UPS and FedEx Volumes double in November and December
– 30 Million packages a day each
– 95K temp labor added for UPS and 55K for FedEx
– Last Four Mondays in December biggest days of the year for carriers
• Wine Industry over 50% of all volume ship in Oct, Nov, Dec
– Weather Holds released
– Wine Clubs
– Fall Releases
– Holidays
Busiest Time of the Year- Holiday Shipping

8. • Carrier Delays- Time in Transit
– November 27-December 24- plan on 1 day extra time in transit
– Dec 18-Dec 23- Air shipments higher risk
• Closures- prepare for holiday closures
– Check your Fulfillment House schedule for holiday closure
– Carriers do not pickup or deliver on these days- surrounding days may be limited
schedules too
• Thursday 11/23
• Monday 12/25
• Monday 1/1
Prepare for the Exceptions

9. • Plan, Prepare, Plan
– Schedule your large shipment days in advance
– Local Carrier facilities jammed on Mondays- consider scheduling shipments later in the week
– Utilize Multi-warehouses
• Wineshipping- reach 98% customers in US in 1-2 days via ground shipping!
– Utilize Temperature Controlled Shipping
• Wineshipping year round weekly shipments
Plan, Prepare, Be Ready

10. Set Expectations-Delight your Customers
• Customer Communications
– Send Holiday offers early in the season
– Incentivize customers to order early
• Reduce price
• Shipping deals
– Publish holiday shipping cut-offs on your website
• Be conservative
– Be Honest- prepare customers for reality and then deliver

11. • Costs
– UPS implementing holiday cost premiums- check with UPS and your fulfillment partner
• Wineshipping customer- we are waiving these increases for our loyal customers
• Other carriers
– Air shipping is more costly
– Consider multi-warehouse shipping – reduce costs!
– Consider your fees to your customer vs. budget
• Adjust pricing if needed
Costs

12. Holiday Gifting-
US retail ecommerce sales are expected to jump 16.6% during the
2017 holiday season, driven by increases in mobile commerce and the
intensifying online battle between large retailers and digital
marketplaces.

13. Gift Packaging
• Ensure your Product Protected
– Gift box fits product appropriately
• Bottles don’t clang together
• Bottles don’t move up and down
• Box closes appropriately
– Outer Shipper fits snug on the box
– Choose items that can safely ship together
– Test Samples
– Test Ship

14. Gift Offering & Setup
• Kit Setup
– Assign an item #/SKU to all components
• Box
• Band
• Sticker
• Wines
– Utilize Kit SKU
• Build to Order vs Pre-Built
– Offering Pre-selected Kit vs Customer Selects
• Items & box size match

15. Gifting
• Corporate Orders
– Communicate with your Shipper
• Use Custom Services
– Plan extra time for customization
• Matching gift card to order
• Custom insert
• One order Multiple Addresses
• Manual effort to ensure it is perfect
• Plan and communicate
– No PO boxes
– Check compliance on destination of orders

16. Gift Cards & Packing Documents
Gift Cards
– Ensure message is in correct field in order data
• Ensure message field length on website correct
– Update Holiday Image
Packing List
– No Prices
– Print Sender and Recipient information
– Print Gift Message

17. Learn more at WineShipping.com and
ShipCompliant.com