Are you ready to join the ecommerce subscription model revolution? Do you believe that you have what it takes to market your carefully curated wine selections to an expanding, loyal group of customers each month? If you answered “yes” to these questions, it’s time to learn the nuts and bolts of launching a successful online wine club.

A brief history.

Although product and service subscriptions seem to be a relatively new phenomenon, the reality is that the first monthly wine club was started in 1972 by California liquor store owner Paul Kalemkiarian, whose customers loved his picks so much that he decided to market them through the mail. Across the pond, the Sunday Times Wine Club was founded in 1973 by Tony Laithwaite, a pioneer who continues to make a name for himself in the wine club subscription payment services arena. By the mid-1990s, many wineries had followed suit, enjoying the profits of this lucrative niche business type.

The best candidate for starting a wine club.

Before you launch your website, you should do some careful self-examination to ensure that you have what it takes to succeed in this sector. For one thing, you should either already be an expert when it comes to the rules of selling and shipping alcohol or you need to do your homework. This is a tightly regulated industry, and you can’t afford to be caught unawares.

If you’re a novice in wine sales, another option is to forge a partnership with an alcohol distributor or maker of wine. Joining with a winery has three major advantages. First, they are already an expert at creating their own unique beverages, and there is no price markup. Second, you can capitalize on an existing customer base that already has a high degree of trust and familiarity with the brand. Finally, you have built-in access to a staff knowledgeable in every aspect of the wines you sell.

Separate yourself from the rest.

You’re not the first entrepreneur to enter the wine club field. As it turns out, there are numerous competitors that you need to recognize and surpass.

The first step is to gather intelligence regarding your rivals. Take some time to peruse their websites to learn about their sales techniques and marketing gimmicks. Be a spy; read their customers’ reviews so that you can emulate what is working and avoid the mistakes.

Once you have some idea about what you want to do to stand out, consider implementing the following strategies.

• Jazz up your packaging. The traditional cardboard box loaded with bottles is stodgy. Add some vibrant colors, and let your brand voice sing out.
• Cater to all sectors of the wine market, from beginners to connoisseurs. For the novices, include fun, informative brochures that describe what makes each curated wine special.
• Spice up your boxes with pairings that will accentuate the wine. These can include items such as cured meats, hard cheeses, and olives.
• Give your customers different wine container options in addition to the standard bottle. Think about offering your wines in boxes, flasks and even cans.
• Spice up your themes, varying them according to the month or season.
• Turn each month into a fun blind taste test contest. Simply remove the labels, and then give customers a chance to guess the identity of each beverage. (Of course, include an answer key.)
• Offer subcategories of wines to appeal to specific tastes: champagnes, red wines, spiced wines, etc.

The businesses that succeed in the wine club game are those that keep their deliveries fun, interesting, and targeted to their clients’ demands.

Launching your wine club.

Now that you have some great ideas about ways to distinguish yourself from your competitors and target your products to your identified customers, you probably want to get going as soon as possible. Before you go live, however, it’s wise to do a test run. Set up a landing page designed to gather emails from potential customers and gauge interest. This should happen before you purchase any inventory or sign up with an online merchant provider.

It’s also important to get your timing right. Assuming that you have a dedicated group of would-be clients ready and willing to join your wine club, you should get it started in September or October. This will allow you to have worked out any kinks before the busy holiday season starts, ensuring that everyone gets the products they have ordered correctly and on time.

Choose your subscription sales platform.

If you run other ecommerce stores, you may already have an online merchant provider that you like. If this is the case, ask them if their software is capable of accommodating your subscription-based wine club. Otherwise, well-known platforms such as WooCommerce have options that are well worth exploring.

A note about high-risk businesses.

Due to their nature or reputation, the products they sell, the regulations that govern them or the increased likelihood of fraud or chargebacks, some businesses represent a higher-than-average level of risk for payment processors. Just like you, these processing companies are in business to make a profit. If they believe that certain aspects of your wine club will cause them additional work or might result in you defaulting on your payments, they will deem you to be a high-risk business.

Although that designation sounds harsh, the good news is that all is not lost. There are numerous high-risk merchant account providers willing to work with your wine club and take on any extra burdens it might carry. In return, however, you can expect to pay higher per-transaction fees, incur additional charges, and will most likely undergo more scrutiny during the application process. Additionally, you may be required to set up a rolling reserve account that the processing company can tap into should you default on your payments.

All is not doom and gloom, however. A reputable merchant account provider with expertise in the alcohol beverages distribution arena can be an indispensable partner as you cultivate your customers and grow your business.

Setting up your subscriptions.

Now that you have the foundations for your online wine club laid, it’s time to contact your merchant account provider. Ask them to configure your software to accept subscription payments, and inquire if there are any tutorials or in-person training that you can access. These instructions will provide you with everything you need to know to get your systems up and running and your staff trained.

Once you think you understand how the software works, test it out on yourself or a friend. Set up a dummy subscription, detailing the amount of money to be withdrawn, the account or credit card to be accessed, how often the withdrawals will take place (usually monthly), and the duration of the subscription. It’s important to help customers understand that they can augment their regular order with additional wines, and that you are always there to answer any questions they may have.

Whether you are working with a new customer or enriching your relationship with one of your loyal regulars, make it a point to keep all lines of communication open. Set up your software to send a thank-you email when a payment arrives, and keep in touch with customers to let them know about promotions or new products that excite you. The key is to keep people interested and engaged.

The subscription-based model that has its roots back in 1972 offers many advantages to merchants and customers alike. As the seller, you achieve cash stability and predictability while your customer has uninterrupted access to the wines they want without needing to worry about forgetting a payment. It’s no wonder that the subscription model has gained such popularity in virtually all types of retail businesses in recent years.