Delivery Issues and data points

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One of the advantages of WineAccess stores as opposed to Virtual Vineyards or other central warehouse shipping sites, is the reduced cost of delivery for WineAccess stores within their local community. Virtual Vineyards, for example, will either charge the customer a fairly hefty fee for delivery, or alternatively charge a lesser fee with a much longer delivery lag time (up to 2 weeks!). We need to capitalize on our model so as to offer the best case delivery scenarios for the user, as this will translate into significant savings for the consumer.

Data Points must be broken down into two categories, packing and delivery cost.

First we must determine packing charges. The actual shipping cases are fairly expensive. The shipping boxes, I believe, are 2 bottle, 3 bottle, 6 bottle and 12 bottle cases. The cost of these cases will vary from retailer to retailer. (So, if the customer orders 5 bottles, he must eat the cost of the 6 bottle shipping case.)

Delivery cost should be calculated on a per bottle basis by zip code. However, we should give stores the leeway to sweeten the cost for the customer. This will be done by offering certain zip codes different delivery costs as a function of the day of the week and the amount of the order. (For example, a store may want to say, "I will offer free delivery to all consumers in the 19072 area code if the total order is greater than 100 dollars". Or, "I will offer free delivery to all consumers in the 19072 area code on Wednesdays." Or, "I will offer free delivery to all consumers in the 19072 area code on Wednesdays if the total of the order is greater than 100 dollars". Or, "I will offer delivery for $5 dollars in any of the preceding scenarios."

Please comment.

-- Anonymous, September 06, 1999

Answers

Jim, how many zip codes do you think a wine store will typically deliver to? Specifying delivery cost rules might get complicated/ annoying if they deliver to more than, say, 20 zip codes because they will have to specify rules (based on day of the week, order cost, and number of bottles) for each zip code.

-- Anonymous, September 06, 1999

Eve, I agree that this is a nuisance, and the permutations somewhat impractical. What do you think about limiting the local delivery options (day, cost of delivery) to 5 zip codes, and then using UPS standards? I would still want the retailer to be able to say, free delivery anywhere for an order over 200 bucks. Think about Manhattan. Skizillion zip codes, but many retailers offer free delivery all over town. Same is true of Chicago.

-- Anonymous, September 07, 1999

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