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Your Secret Weapon: ShipCompliant Analytics

Have you ever wanted to easily find meaning in your ShipCompliant data or wondered what your most popular varietal or product is in a particular state? Or perhaps you’ve wondered which orders are unshipped, or even which licenses are expiring without manually sifting through spreadsheets or order data? ShipCompliant Analytics serves up data from your account in easy-to-read, exportable reports so you can quickly locate and review the information you need.

Now is a great time to reflect on how your business fared in Q1. Check out the Compliance, Fulfillment, and Sales and Marketing Analysis in the Analytics tab of your account to see where you stand, find trends, or even change the course of your business for Q2 and beyond. Below is a list of popular reports by section that are currently available to ShipCompliant clients.

Compliance

  • Expiring License Analysis – A list of expiring and coming due licenses by state and type.
  • Non-Compliant Order Analysis – See all non-compliant orders during a specific time period.
  • Open Tax Liability by State – For each month in a given year, see open tax liability by state.
  • Required Label Registrations – View any labels that require direct-to-consumer registrations.
  • Taxes Paid by State – View the breakdown of sales and excise taxes paid to each state.

Fulfillment

  • Delivery Attempts and Exceptions – Analyze carrier (FedEx, UPS, GSO) scans from the last 30 days.
  • Unshipped Order Analysis – View all orders with a recent requested ship date that have not yet been shipped.
  • Products by Fulfillment Location – View products shipped by each fulfillment location.

Sales and Marketing Analysis

  • All Sales by State – See all sales by destination state. Great for comparing pickup, direct shipped and wholesale sales.
  • Top Selling Products by State – For each ship-to state, see the top selling products, including varietal.
  • Direct Sales by Partner – View sales by OMS partner.
  • Cases Sold per State vs. Baseline – View your direct to consumer sales by state compared to the aggregate baseline.

Once you locate the report you’re interested in, export it in the file format of your choice for further analysis. If you can’t find the report you’re looking for, just suggest a report on our Analytics page or in our Ideas Forum.

Happy Analyzing!

No Need to Update Your ShipCompliant Passwords Because of the Heartbleed Bug


By now, you have probably heard about an encryption flaw called the Heartbleed bug. This bug affected web applications using a particular version of OpenSSL, a protocol designed to provide security for information transmitted over the internet. A widely-used version of OpenSSL was vulnerable to an issue in which sensitive information could potentially be exposed to a malicious hacker.

img src heartbleed.com

ShipCompliant services were not exposed to this vulnerability because we do not use OpenSSL.

ShipCompliant takes security, reliability and durability of your data very seriously. We follow a multi-tiered proactive approach to ensure we use the most powerful security tools and controls available so that all your sensitive information is protected. For more information on our security and privacy policies, please see our Privacy Overview page.

If you have any questions or concerns surrounding this issue, please contact us directly by emailing ShipCompliant Client Services, or by calling (303) 996-2356.

The Pac Northwest is Heating Up! Learn How to Harness the Growth

Next week, our team will be in Napa to celebrate our 8th annual DIRECT Conference. If you’ll be in the area on June 13th, we’d love for you to attend!

But did you know that we’ll also be holding events in Oregon and Washington this month?

It’s easy to see why hundreds of brands in the Pac Northwest have begun to use ShipCompliant in the past few years; the region is now a formidable force in direct-to-consumer sales. When we compiled our 2013 Direct Shipping Report, we saw growth across the entire market, but Oregon and Washington stood out as outperformers. Though their direct wine sales are about one fifth of Napa’s, the upward trend is hard to ignore.


Let’s take a closer look at Washington.


According to our 2013 Direct Shipping Report, the Evergreen State has seen monumental growth in its wine industry, with year over year volume growth of more than 18% in 2012.Not only that, but the average price of a bottle from Washington has risen 19%. This has pushed the market past the $50 million mark for the first time last year, and is showing no signs of slowing down.

It also seems that the best food pairing for a glass of Washington Cabernet Sauvignon, is, in fact, another glass of Washington Cabernet Sauvignon. Sales of the varietal have shot up over 69% in the past year. Cabernets, Syrahs, and blends now represent 70% of the state’s market for wine by volume.

Heading south a bit, our friends in Oregon have also enjoyed huge success in recent years. The state boasted a 10% gain in direct shipping sales last year, and its average price per bottle has risen to over $37, slightly above that of both Washington and Sonoma.

The 2004 Paul Giamatti film “Sideways” was set in Santa Barbara, where the actor’s character was obsessed with Pinot Noir. Based on our data, the film could have easily been set in Oregon, where the varietal represents 60% of total shipping volume, as well as the highest average bottle price at $47. No other region is more dominated by a single type of wine than the Beaver State.

The source of Oregon’s rise in direct shipping, however, is not forged by Pinot alone. Now that Oregon has established itself as a haven for aspiring grapes, more varietals have stepped up to the plate, as Pinot Noir’s annual volume remains flat. Syrah/Shiraz, Sauvignon Blanc, and Cabernet Franc have all exploded in 2012 with growth of over 100% each. Meanwhile, Cabernet Sauvignon’s average price per bottle has risen 30%, to $35. Though these varietals have a long way to go to catch up to Pinot Noir, it’s this diversity that is truly fueling the state’s rapid ascent.

We welcome this growth, and we love to see it. In fact, we’re hosting two events in the Pacific Northwest this month, along with our sponsors, Moss Adams LLP. We call it “Step-by-Step,” and we’ve designed these seminars to help wineries finance, account for, and act compliantly through the rapid positive changes happening in their businesses.

To sign up for our June 18th seminar in Oregon, click here!

To sign up foro ur June 20th seminar in Washington, click here!

Sonoma County Updates, and a Cordial Invitation

Today, we would like to remind you of two things: one is a law that will affect our friends in Sonoma County this year, and the other is a cordial invitation to an industry event in the area on May 30th!

Sonoma County has seen great growth over the past few years, especially in 2012. According to our latest direct shipping report, created in conjunction with Wines & Vines, we have seen sales through direct shipping out of the area rise over 10% in the past year alone. Several regional organizations have taken note of this growth, and helped pass legislation in August of 2010 to ensure that Sonoma-based wines are properly branded and marketed.

Sponsored by the Sonoma County Vintners and the Sonoma County Winegrape Commision, AB 1798 requires that any wine from an American Viticultural Area (AVA) located in Sonoma County must also include the words “Sonoma County” on its bottle labels. Though the legislation was passed three years ago, very little action has been required by vintners—until now. The state of California will begin enforcing this new requirement on January 1st, 2014. The possible punishment of neglecting this new rule is the revocation of one’s winery license.

This marks the fourth kind of law, called “conjunctive labeling,” enacted in the Golden State. Napa Valley, Lodi, and Paso Robles have had this type of requirement enacted in the past.

The rationale is twofold:

  • According to the sponsor organizations’ market research, Sonoma County’s brand recognition is much greater than most of the individual AVA’s that make their home in Sonoma County
  • A voluntary program to place “Sonoma County” on the region’s wine labels resulted in a 20% participation, and sponsors of the bill want to increase those numbers significantly.

There is a counter-argument to this new initiative, however. Wineries have been using more detailed AVA information to better market their region, such as “Russian River Valley” and “Dry Creek Valley.” Adding Sonoma County to the label is seen by some as diluting the brand. Regardless, the legislation has long since passed.

While this may have been on your radar when it was first enacted, we wanted to remind you that this would be a good time to make sure your upcoming COLA submissions to the TTB are properly ready to go.

More detail on label requirements can be found at :
http://www.sonomawine.com/about-sonoma-county/conjunctive-labeling

As for that invitation…ShipCompliant is pleased to participate in the eWinery Solutions “State of the Industry” seminar at Sonoma State University on May 30th. We’ll be digging deeper into our recent direct shipping data, and talk about ways to use this data to your advantage! Click here to sign up!

Variety: The Spice of Life for Direct Shipping?

Among the most revealing facts in the new 2013 Direct Wine Shipping Report we recently released with Wines & Vines is that, given all the various types of wines produced and sold by wineries, a very select few types of wine dominate those shipped direct to the consumer.

Together, Cabernet Sauvignon, Pinot Noir, Red Blends, Chardonnay and Zinfandel represent 70% of the total volume of wine shipped and just over 80% of the value of all specified varietal wines shipped from winery to consumer. This line up of dominant direct-shipped wines is somewhat similar to the dominant wines in the overall wine market where Cabernet, Chardonnay and Pinot Noir are also in the top five varietals.

But take a look what happens when you compare the top five wines shipped direct to the consumer and the top five wines sold in the larger retail marketplace, and when you look at their share of total volume.

Direct-to-Consumer % of Volume Retail Marketplace % of Volume
Cabernet Sauvignon 20% Chardonnay 21%
Pinot Noir 16% Cabernet Sauvignon 12%
Red Blends 15% Merlot 9%
Chardonnay 12% Pinot Gris/Grigio 8%
Zinfandel 8% Pinot Noir 6%
All Other Varietals 29% All Other Varietals 44%

The direct shipping channel is a much less varietally diverse sales channel than the overall retail marketplace. In fact, some wines that play a key role in the overall marketplace only show up as a blip in the direct shipping channel. In 2012 Moscato held a 6% share of total sales volume in the overall retail sector. In the direct shipping channel, it accounts for a mere .1% of volume. This should be a reminder to wineries and retailers that every sales channel is different. Anyone that has enjoyed success in 3-tier distribution and is considering direct shipping, or vice versa, should review their product mix ahead of marketing efforts.

Beyond those varietals that dominate the direct shipping space, there is the equally important question of which varietals are trending up and trending down in popularity.

In 2012, only four varietals showed a significantly greater increase in shipments than the overall channel average of 7.7%: Rose, Sparkling Wines, Chardonnay and Pinot Noir. It’s important to note that the data we’ve looked at over the past three years has shown a fairly strong correlation between increased sales and movement in a varietal’s average price. When a varietal’s average price goes up, sales tend to go down and vice versa. What we are looking for are examples of varietal wines where shipments have increased despite a price increase or a slowdown in sales despite a price decrease.

Price/ Bottle Change Volume Change
Rose -7.60% 32%
Sparkling Wine -4.80% 20%
Chardonnay -3.80% 10%
Pinot Noir 3.30% 16%

Clearly, we have a winner here. Pinot Noir is on the ascent in the direct shipping channel. In 2012 the wine not only increased in average price per bottle, but it significantly increased in volume sales. This in turn led to Pinot Noir seeing a whopping 19% increase in sales value. The majority of this growth is found in Sonoma, where shipments of Pinot Noir increased by 27% on an average price per bottle that increased by 4.2%.

On the tumbling side of the scale, three wines saw a significant decrease in the volume of wine shipped in 2012 over 2011: Riesling, Merlot and Cabernet Franc. Again looking the change in price per bottle a story unfolds.

Price/Bottle Change Volume Change
Riesling -12.00% 2.80%
Merlot -8.30% -9.40%
Cabernet Franc -7.60% 9.10%

Merlot is not only losing pace in its shipments, but in its average price per bottle. In Napa specifically, the average price per bottle of Merlot fell a whopping 12.4% (more than any other varietal from the region) and volume dropped by 11.2%.

For more complete data on the varietal make-up of the direct shipping channel, including how various specified varietal wines perform on a regional basis, download the 2013 Direct Wine Shipping Report today!

What Wineries Can Learn from the NFL

Anyone watching the NFL has probably noticed something a little different this year…the referees stink!

Thanks to a labor dispute with the refs, the NFL has been using “less qualified professionals” to regulate the games. And after Monday night’s fiasco in Seattle (sorry Packers fans), it’s clear the NFL’s fan base finally put enough pressure on the league this week to come to a financial agreement with the regular referees.

Despite having the same teams, same players and same rules, the NFL’s entire brand was tarnished this year when they tried to minimize their expenses on enforcing the rules.

Believe it or not there’s a lesson in here for wineries.

NFL referees are in many ways similar to the compliance operations for a winery. They both make sure that rules are followed and things run smoothly. When problems occur, they act quickly, collaboratively and decisively to resolve them. It’s often said the best referees are the ones that aren’t often noticed. The same could be said for your wine compliance.

And if it’s not handled professionally? Well, things internally can get messy, unexpected costs can occur and customer relationships can even get strained. We’ve seen it happen quite a bit.

So take a note from the NFL and make sure that you’re not shortchanging your compliance solution. Your fans will thank you for it!