Has Amazon cancelled your Cocktail Party?

How the lack of contact-free delivery is affecting spirit brands on Amazon…

The Convenience of Amazon

Amazon is an online retailer giant because of its effortless convenience and consumer-first approach. If you need to purchase a last-minute gift, if you’re planning an impromptu party, then Prime’s next-day delivery has your back.

More recently, particularly since the COVID-19 pandemic, reduced-contact deliveries have become the standard. Are you not going to be home to accept a delivery? That’s no bother, your package will be waiting on your doorstep patiently for you. You can nominate a safe place for your parcel to be left, or request for it to be delivered to an Amazon locker or pick-up point. It has never been easier to have what you need, exactly when you need it, and Amazon are leaders in this approach.

Amazon’s Age-Verification Policy

However, every great thing comes with its limitations, and not all consumer goods are eligible for contact-free delivery. Age-restricted items such as alcoholic drinks and nicotine products require your delivery driver to log your DOB and for your photo ID to be presented no matter how old you are.

Amazon clamped down on its age verification policies back in 2019, after BBC Watchdog revealed that they were among the retailers who had sold knives to a 16-year-old.[i] This triggered changes such as mandatory age identification for all customers, and no contact-free delivery for age-restricted products.

The Impact on Spirit Brands

So, it begs the question… do these policies offset the overall convenience of a platform like Amazon? And does this make it harder for spirit brands to thrive in the marketplace?

It’s important that Amazon takes its age-verification policy very seriously, but for a platform driven by convenience, you can’t help but consider how this may be affecting the sellers of age-restricted products.

Since the pandemic, spirit brands have shifted their focus toward how they can capitalise on home-drinking occasions. Especially since 75% of consumers that buy and drink alcohol find socialising by drinking at home just as enjoyable as socialising with drinks outside of the home. [i] Amazon has been growing a presence as a key revenue driver for spirit brands over the past few years, ever more so since the introduction of Amazon Fresh. While the majority of consumers still prefer to purchase alcohol in-store, the compelling price offers from online retailers like Amazon has helped this category grow.

However, if consumers are choosing to shop with Amazon for a hassle-free experience, then they may feel put out by the lack of flexibility in the delivery of these age-restricted products. Further encouraging them to shop for alcohol in-store at a time that’s convenient for them, so they don’t have to be on standby at home waiting for their delivery.

Our Final Thoughts

So, does that mean spirit brands are wasting their time on Amazon? No, the cost-effectiveness of Amazon, specifically for smaller brands, shouldn’t be ignored. It can be a great discovery channel, and you can’t deny the volume of shoppers they have. While alcoholic drinks is a smaller category on Amazon, compared to dominating categories like home and kitchen, the opportunities are growing every day as consumer behaviour leans further toward digital.

Do you want to find out what the opportunities are for your brand on Amazon? Book an introductory call with us here.

[i] Amazon to ID all customers buying age-restricted products | News | The Grocer

[i] UK Alcoholic Drinks Market Report 2021 (mintel.com)