Friday, October 26, 2012

The Structure Of The Online Wine Industry

Creating an online wine business is an effective way to sell bottles of wine to customers around the world. Although the web is global territory, licensing and liquor laws still apply to online wine vendors.








Regulation


For citizens of the United States, online wine businesses are regulated by the federal government. Specifically, the Alcohol and Tobacco Tax and Trade Bureau (TTB) requires wine vendors to register their business for a permit, pay alcohol taxes or special dues and adhere to documentation requirements as established by Internal Revenue Services.


Products








To sell wine online, vendors must have access to wine distributors, or perhaps make and bottle the wine themselves. Making and selling wine from home requires the individual to possess a federal liquor permit from the TTB. To label a wine bottle, the vendor has to obtain a Certificate of Label Approval from the TTB as well. The TTB has restrictions about what information must be present on a wine label for consumer safety.


Websites


The online wine industry relies on websites rather than stores to sell products. Customers purchase bottles of wine directly from the website, and the transaction goes through electronically. After a customer secures their purchase, the vendor must prepare the order and ship it out to the customer's address within the established time frame.

Tags: online wine, bottles wine, wine vendors