wines not in inventory but on the website

I was just looking at a wine store web design and hosting service http://www.bevsites.com/index.php/2005/12/increase-your-selection-without-owning-additional-stock/ which has a concept called “virtual inventory”. In a nutshell the retailer lists on on its website what is available at wholesalers as if those products are in the actual retailer’s inventory. Then when the virtual wine is ordered the retailer gets a quick turn around from the wholesaler (I can just imagine the wholesaler running right over with a case). IMO this is not a good idea and is arguably unethical. Our website inventory is not real time but it’s updated once a day and pretty accurate depending on data entry errors and what’s been sold since the last data upload. I realize that stuff like this goes on but never so blatantly. Am I missing something?

When we owned our store there were several online retailers in the area that ran their whole business that way with the possible exception of an occasional bit of inventory left from buying a full case to fill a smaller order. One retailer had over 6,000 items listed on Wine-Searcher and it was common trade knowledge that he had almost none on hand. I’ve seen lots of indignation over this here, but I have to say that I don’t find it “unethical” if the site can deliver within the stated timeframe it promises.

I tried it for a while myself but found it took way too much work because my suppliers were not all that willing to share their stock positions. Since then I’ve noticed some major distributors making their inventories available on line. It’s never been a problem, in this market, to get most supplier delivery within 2-3 days, so I know of some stores that still do it.

I don’t know if it’s still there, but Wine-Searcher used to provide user feedback that would pretty quickly ‘out’ any seller who did not deliver. It’s a fine line but I can tell you it allowed some retailers to eek out some additional sales, especially during the depths of the recession.

Just my 2¢ of course.

This is sadly quite common, often without explanation. There were a bunch of stores in my local area doing this, and I knew they were little mom & pop places with nothing like that inventory. There are threads in Wine Talk about some of the more notorious stores:

While I don’t agree with the practice, I see nothing wrong with it, as long as they don’t charge your credit card until they actually have the product in stock.

Well, if the website gives the impression that the wine listed IS in the store’s inventory when it in fact isn’t, I would say that’s false advertising. If I ordered Chateau X from the retailer’s website, and got an email a few days later that they weren’t able to “obtain” the wine listed on their website, then I wouldn’t be inclined to place any other orders with them.

Bruce

This article was written in 2005. Times.have.changed.

It still happens but is a very small % of the total listings out there…

If all you are shopping on is price - you are sure to get burned by this at some point or another…

We’ve had a few distributors say, “Don’t buy it and load up on inventory, put it on your website and when you sell it, then order it.” I made the mistake of doing that ONE time in all of our yrs of biz and sure enough I had an order for a case of a wine, I called my rep 4 days after she told me that and she said, " oh I’m sorry we’re sold out of that. Grrr!

Reps have told me they have several accounts that do business that way because they don’t have the space or funds to carry a large inventory. I can’t imagine doing business like that, how can you sell something if you don’t own it and have it in your possession? What happens if a customer orders XYZ wine and needs it shipped overnight and the retailer/etailer doesn’t have it in inventory but has to order it and delivery is 2 days away?
I agree with Bruce, it seems like false advertising. No one would go to any other kind of retailer and accept it, why should they in this industry

Matt,
I think it still happens more than you think it does, especially with places that are only etailers.

From time to time I run across an etailer’s website, with no reference to a bricks & mortar physical location. I wonder how many of them rely on “virtual” inventory.

Bruce

+1. I completely agree Carrie. I love the business model - take the customer’s money before you’ve even ordered the product, but it feels dishonest.

I have much less of a problem with e-tailers that actually buy 20 cases of, say, Pahlmeyer Red and then send out an email blast. If they get orders for 25 cases and have to scramble for those last 5 cases at least they really did have plenty of wine in stock when they made the offer.

I appreciate it when etailers go as far as listing the number of bottles in stock.

Unfortunately, there are plenty of them though that still list inventory they don’t have. It’s frustrating to place an order only to receive the dreaded “we’re sorry” e-mail a few days later. It happened to me just last week. But what is the advantage of doing this? You’d think it would be a hassle for them too.

Well, IMHO it’s fraudulent to charge any customer for a wine that’s not in stock and that they may not be able to obtain. Most retailers don’t charge you unless and until the wine is shipped (exceptions being
where you bought the wine but asked for it to be held for shipping due to weather). At the very least, good retailers won’t charge you for the purchase until they’ve checked their inventory and can confirm that they actually have the number of bottles on hand to fill your order.

Bruce

Carrie, I wholeheartedly agree with you but what is called “drop shipping” (doing exactly this) is the central business plan of LOTS of internet sales sites in computers, shoes, books, sports equipment, you name it.

Report them to Wine-Searcher if they are uploading the wines as available to that site.