Library Release - Putting Trust in Data w/ Russ Mann, WineBid

Library Release - Originally released as episode 26 on Nov 11th, 2020With a 25-year history, WineBid is the oldest and largest online wine auction site. The original re-commerce platform, Russ tells us about the auction process from the buyer and seller perspective and all the data they collect and display for the wines. This includes innovations such as a 360-degree bottle shot, price history charts, and new functionality like their customized shipping feature. He spills the beans on a few tips and tricks to get the best deals on WineBid! Detailed Show Notes: WineBid - 25 years old, based in Seattle with operations in Napa, the oldest and largest wine auction siteWeekly auctions - open at 7:15 pm PST on Sundays, close at 7 pm PST the next SundayAll items open at the same timePro’s get 1st 5-10 minutes to view and place bidsWhat doesn’t sell rolls into the following weekNow introducing some wines mid-week, with most wines going in one weekSet good reserves upfrontFor Sellers of wineConsignors are mostly private individualsMost sales are for $10,000-$1M+, ideally $100+ average bottle valueSellers send their list and get an estimateWineBid does the appraisal and after agreeing with the consignor, ships wine to the Napa warehouseWines are inspected, authenticated, and photographedOnce sold, sellers get a check or electronic wire transferAs part of an estimate, for larger cellars, WineBid will help catalog and pre-inspect on-siteReasons people sell winesAs in many businesses, the 3 D’s - divorce, debt, and deathPeople also have their tastes change and swap out what’s in their cellarsThey move and want to downsize their cellarSpouse/partners - may force sales before they can buy moreConsignment vs. cash buyout for wine sellers - generally make more money consigning and capture more upside, but takes more time and can get paid sooner, at a discount, with immediate cash buyoutBusiness modelSeller commissions - at most auction houses, 5-25%, the larger the consignment, the lower the premiumBuyer’s premiums - generally 15-25%, 17% at WineBid vs ~20-25% for live auctionsBuyer demographics - ~135-150,000 registered bidders70% US, 20% Asia, 10% Europe⅔ Male, ⅓ FemaleUpper middle-income with professionals in high-tech, finance, lawyers, doctors, etc.Demographics are getting younger, particularly in 2020 -> interested in a broader selection of wines with higher mobile usageMost learn about WineBid via word of mouth, recently doing more social and digital advertising and trying to make the experience more personalWineBid Innovations360-degree hi-res bottle shotsOne of the best for still photography in wine auctionsShipping functionality - can see everything you have and pick and choose what and when to shipSome of the most detailed condition notes on bottlesWine price chart for the history of the bottleProvenance premiumsDon’t see significant premiums on provenanceNo significant premiums for original wood cases (“OWC”) - buyers often don’t want to pay extra to ship the wood caseCertificates of authenticity not seeing significant premiumsLabel appearance is important to many buyersThe proliferation of wine critics and influencers has led to some influencers rivaling and outpacing traditional media Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.