How Is Technology Transforming the Alcohol E-Commerce Experience?

alcohol e-commerce

Online purchasing channels were never too popular as a platform for selling alcoholic beverages owing to the various legal regulations restricting the sale and delivery of alcohol online. However, the mode of selling changed drastically with multiple lockdowns due to the outbreak of the COVID-19 pandemic. This shift to online shopping was mostly due to the remote access to a wide range of products and easy availability which saved both time and effort of the buyers.

In response to the rising demand for alcohol in e-commerce, companies started reconsidering their marketing strategies by integrating cutting-edge technologies into them. They created mobile applications and catalogs that offer more buying options at once buyers select from a wide range of products. In addition, they utilize routing algorithms that have made their delivery systems faster and more efficient.

Tailored buying experience, wide availability of products, and automated process

E-commerce platforms utilize artificial intelligence and machine learning algorithms to analyze consumer behavior and preferences. These systems suggest products depending on an individual’s tastes by tracking past purchases and browsing history. For example, the platform suggests new arrivals of wines if a consumer frequently purchases red wines from a specific region. This level of personalization improves the shopping experience and encourages repeat purchases. Moreover, augmented reality in online businesses creates interactive experiences, letting consumers visualize products before completing a purchase. Retailers provide virtual tastings and let customers access different samples from their homes. They also receive expert guidance through live-streamed events in the process.

Furthermore, augmented reality provides detailed information if the buyer scans the given codes with smartphones. This improves their product labels to a large extent. Consumers can access details of the drink’s origin, their taste sheets, and food pairings. This enriches their perspective on the product and helps them make more informed purchasing decisions. The information about the product such as alcohol content and aging, availability of rare and specialty liquors, and variants to the consumer has significantly contributed to the growth of the alcohol e-commerce market. According to Allied Market Research, the industry is projected to reach $173.8 billion by 2031, growing at a CAGR of 15.2% from 2022 to 2031.

Seamless ordering and delivery, subscription services accelerating delivery chain

E-commerce platforms allow consumers to browse catalogs. They also allow the buyers to read reviews, and place orders immediately. Many platforms also offer subscription services that send curated selections of beverages to customers. Moreover, technological progress in logistics has improved delivery efficiency. Companies utilize cutting-edge routing algorithms to make the best use of the delivery routes, guaranteeing that orders arrive instantly.

Some services even offer same-day or next-day delivery options, catering to consumers’ immediate needs. These platforms are preferred by younger legal drinking-age consumers who seek interesting or premium brands and are willing to pay for rapid delivery. China has 60% alcohol buyers, which is the largest proportion of online shoppers. The U.S. is the biggest driving force of the growth. The market has 54% of online buyers who made their first purchase during the pandemic and has witnessed a 20% average growth annually, making it the top global market for online beverage alcohol.

Thirstier’s partnership with William Grant & Sons

Thirstie is a prominent US-based e-commerce solutions provider for beverage alcohol brands. It collaborated with William Grant & Sons in September 2022. The companies utilized their business resources together to expand the later’s global e-commerce strategy. Moreover, it provided consumers with enhanced digital access to the diverse portfolio offered by William Grant & Sons.

Innovative marketing strategies

While e-commerce offers opportunities at the transactional level, the real benefit is connecting with customers directly, something not possible for brick-and-mortar stores within the three-tier system. Alcohol producers can now build direct relationships with their customers and create positive, personalized online shopping experiences that will build brand loyalty and increase retention and sales. Transactional helps in communicating directly with customers without them having to opt in. Order confirmations and shipping updates suggest the other products they like or offer a discount on their next purchase to keep them coming back.

More brands are diversifying their tech stack and using POS systems to send personalized emails and SMS messages to send recommendations. They engage in conversational commerce via SMS, texts that invite two-way dialogue to help get a certain response from consumers. They are designed as a series of cues that lead customers down a path. It depends on responses leading to a recommendation from the brand.

Ending lines

The ever-expanding growth of e-commerce and its integration with cutting-edge technologies have notably changed how customers discover, purchase, and enjoy alcoholic beverages. In addition, personalized marketing strategies and immersive virtual tastings have made the shopping experience more convenient and exciting. This has increased buyer engagement, earning high retention rates and brand loyalty. Moreover, organized supply chains also allow remote accessibility and timely deliveries of the drinks. In the upcoming years, these factors are expected to bring lucrative opportunities for the landscape providing customers with the benefits of pleasure and privilege.