Snapshot : E-Commerce alcohol sales have boomed as stuck-at-home customers get their booze delivered. That’s given us a thirst to learn more about this category. So this week, we first look at why alcohol works so well as an online product. Then, we’ll do a customer experience and marketing technology audit of Dan Murphy’s, Liquorland and Bundaberg and share what we learn.
As Covid lockdowns continue, and nobody can go out to the pub, Australians are drinking far more booze at home.
In fact, e-Commerce alcohol sales tripled in 2020.
We’ll say that again.
That’s a major shift in e-Commerce alcohol sales that gave us a thirst to learn more.
We like to look for ideas and inspiration in e-Commerce by researching different e-Commerce categories. (see for example our articles on online fashion or grocery shopping). If you run your own online store, you should research other categories too.
Why alcohol works well for e-Commerce
First reason e-Commerce alcohol sales work is convenience. It’s simply far more convenient to get this heavy product delivered, than it is to go to a shop and carry it home yourself.
When you research what online shoppers want, convenience is one of the most common reasons people shop online.
Online booze delivery is convenient. Someone else carries the weight of the product.
Plus of course, you’ve got all the universal e-Commerce convenience benefits. Order any time of day. From anywhere. Delivered at a time to suit you.
Next reason is range. There’s a lot of choice in the alcohol category. Online stores can carry a wider range than traditional stores because they don’t have the same space limitations.
As long as they have warehouse capacity, online stores can stock best sellers and those rare single malts and limited edition vintages that would never make it into traditional stores.
Finally, these’s how the e-Commerce business model work with alcohol sales. Alcohol is a high value item, with high average order values. You can better absorb delivery costs into the high order values and maintain your profitability.
Example - Absorbing the delivery cost
Let’s say average delivery cost is $15.
For a low value product, say a $3 bottle of Coke, cost to the online customer is $18 ($3 + $15 delivery).
That’s six times the cost of the product itself. And you only clear a sixth of the value ($3 / $18).
Not great for you or the customer, is it? Only the delivery company wins in that scenario.
But look at what happens to the numbers when you sell a high value product, say a $90 bottle of single malt scotch.
It’s still $15 to deliver. Total cost is $105 ($90 + $15 delivery). But, now the customer is only paying a 17% online premium for the product ($105/$90). And you make 86% of the value ($90 / $105).
Those profit levels are a bit easier to swallow, aren’t they?
Throw into the mix the wider benefits of selling online, like the direct connection to customers and the control over the supply chain, and it’s clear why the e-Commerce alcohol sales business attracts so many.
Challenges with e-Commerce alcohol sales
But it’s not quite cheers all round. There are challenges with e-Commerce alcohol sales.
For example, you need a liquor license to sell it. That takes training and qualifications. Those take time, money and effort.
Then there’s the delivery challenges. Heavy products mean delivery drivers need the right training and equipment to transport products safely. Most alcohol comes in glass bottles, so you need the right packaging to minimise breakages.
Also, alcohol is a tempting target for thieves. You can deliver many online products with “permission to leave”, but alcohol normally requires a signature. This increases delivery costs because you’ll need to redeliver if the customer isn’t in to sign for it.
So, now we know the pros and cons of e-Commerce alcohol sales, let’s check out how it’s done.
User orientation reviews the experience of first time visitors. We’ve used five basics question Steve Krug shares in his excellent Don’t Make Me Think book :-
- Where am I?
- Where do I begin?
- What are the most important things on this page?
- Where did they put …? (key elements like the home page / logo, search and the shopping cart)
- Why did they call (any confusing terms) that?
(see our article on 52 ways to start testing e-Commerce websites for more on these questions).
We’ll also consider how people scan the page.
Website eye tracking studies show most people scan in a Z shape. First along the top of the page left to right, then from top right to bottom left, and then again left to right across the bottom.
We’ll look at how each site positions key content to see if it fits this Z-shape.
Ease of purchase
To test ease of purchase, we’ll try to buy something. We’ll audit information sharing and the buying process. For example, how clear payment and deliver options are the overall number of clicks. We’ll also look for anything that makes the purchase more difficult.
Testing process – Marketing Technology
After the customer experience audit, we’ll then test the marketing technology on each site. We’ll look at some technology performance measures, and which technology platforms it uses.
The tests and tools we’ll use for this include :-
Domain Authority – using Moz’s tool bar plug-in to review search performance.
Page Speed Index – using Google’s Lighthouse page speed test to review site load speeds.
Platform audit – Finally, we’ll use the Wapplyzer app plug-in to review each site’s martech platforms.
First off, Dan Murphy’s, part of the Woolworths group (though they trade as a separate entity called the Endeavour Group). Dan Murphy’s dominate Australian e-Commerce alcohol sales with over 50% share of online visits. They use a cost leadership e-Commerce competitive strategy, and are best known for their Low Price Guarantee.
Dan Murphy’s - Customer experience
Overall, Dan Murphy’s home page did a good job of answering the basic user orientation questions.
What the page was and how it all worked was clear. We found very few issues getting started with using the site, or finding what we needed.
Dan Murphy’s – where am I?
The brand name and logo was clear. It’s where we expected to find it. The URL was also clear.
Good start. We knew where we were.
Dan Murphy’s - where do I begin?
After the logo, the first element we saw was the search box in the middle of the top navigation bar. For a site with a wide range, and with many customers looking for specific products, making search so visible makes a lot of sense.
No need to explain who Dan Murphy’s is, or what they stand for. Most customers already know that.
We noted they add – search 1000s of products – but you can’t search for non-product related terms. So, zero results for “delivery charge” or “refund policy” for example. A minor friction point for some customers.
Dan Murphy’s – What are the most important things?
The largest page element was a video offering to “meet the wineries, breweries and distilleries that are proving why we’re the lucky country”. But interestingly, we didn’t take this away as the most important thing.
With the Z-shape eye scan, we first saw search, delivery and account at the top of the page, and that there’s a secondary navigation bar with alcohol categories.
But then we scanned to the bottom of the page where we found four choices – Deliver now, 30 minute pick up, Shop in store, Drink Inspiration.
These felt like the most important things on the page.
Dan Murphy’s - Where did they put …?
Search, delivery and account information was all in the top navigation bar. Very clear.
Secondary navigation with specific categories sat immediately below the top bar. Again, very clear.
Other shopper experience links were dropped down to the footer menu.
It’s common to include guides, delivery details and terms and conditions in the footer, so from an orientation point of view, there were no issues.
Dan Murphy’s – Why did they call it that?
We couldn’t spot any confusing terms on the page. The category navigation terms for example all used clear and simple language. Hard to be confused by any of New, Wine, Spirits, Beer, Premix, Non & Low Alcohol, Gifts & Occasions or Offers.
Ease of purchase
Next, we tried to buy something. Our shopper “mission” here was to buy a nice bottle of Shiraz for around $20.
Clicking on wine pulled up a sub-menu with filter options by type, region, Decoded red wine winners, popular brands and what’s trending.
Good initial selection, although we had to guess what Decoded Red Wine winners meant.
But we knew we wanted Shiraz, so we picked that.
Our first issue.
The site didn’t like the tracking and ad blockers we had switched on.
It wouldn’t display the search filter results on Shiraz, so we had to switch to another browser to continue.
(we did all these visits on Chrome by the way, with Safari as back-up if something went wrong – like it did here).
There was a lot of choice – 2,315 items. So, we went to the side navigation bar where we could narrow choice by price and category.
Price was a helpful filter here, but the category less so, as it listed Red Wine and Shiraz which we’d already selected.
We now had a further ten choices :-
Current Offers, Brand A-Z, Country A-Z, Region A-Z, Award Winner, Customer Ratings, Cellar Release Wine, Organic, Vegan Friendly, Langton’s Classification and Direct from Supplier.
More choice is usually a good thing. But there’s a limit before it gets distracting. Ten options felt slightly too much for us, but it didn’t put us off.
We picked the $15-$25 price filter and while it worked, it weirdly still showed the total as 2,315 items. Which means we can’t share how well the price filter worked. But, there were some likely options in the first four products we saw, so that’s where we went next.
These four were all sponsored placements. Suppliers paid Dan Murphy’s for those products to appear. The first two products were only on offer for members, so we picked the first “non-member” option – Wolf Blass Makers Project Reserve Shiraz.
Note however the layout of this product range page. It was very well done. Review links above the product. Halliday wine score where available. A clear product image and the price – per bottle or per case of 6.
No issues here.
Picking a product
We could pick up in store or choose delivery options.
We added to cart and then checked the cart for the price and delivery charge.
At this point, we had a slight “off” experience as we couldn’t arrange a home delivery as a guest. To continue the order, we had to log-in as a member.
After doing this, next came a simple shopping cart and check-out form.
It automatically filled the delivery address from our membership details (helpful).
Then we got three delivery options – Now (within 2 hours) for $15, Just Say When (a specified 2 hour slot in the next 7 days) for $15 or Standard Delivery (2-4 Days) for $9.90.
There was also a permission to leave question, and the option to add delivery instructions.
We then went to Payment which was either by Credit Card or Pay Pal. There was one final tick box to certify we’re over 18 and have read the Terms and Conditions and Collection Statement.
These options were all on the one page. They were clear and simply laid out in a format that also worked well on mobile.
Apart from the guest check-out challenge, everything else made it really easy to purchase. It was a pleasant e-Commerce alcohol sales experience.
Branding on Dan Murphy’s was generally good. There was consistent use of brand assets like the colours (highlight buttons in green for example) and the typography.
The tone of voice fitted their brand identity – it was friendly, but professional and very straightforward.
There were no intrusive or pushy messages. For example, member offers and sponsored placements were subtle rather than overt.
Dan Murphy’s – Marketing Technology
So, customer experience was generally good with Dan Murphy’s. Let’s now look at their marketing technology.
Moz Domain Authority – 59
Their Domain Authority was 59 which is a good, though not amazing score. For comparison, in our article on buying high ticket items online, we looked at Domain Authorities on other retailer brands and JB Hi-Fi scored 75 and The Good Guys scored 61.
Page Speed Index - 19
The speed test on this page showed it failing 3 out of the 4 core web vital scores. An overall score of 19 is below average.
Where it was good was on First Input Delay. This links to the location and speed of the server which hosts the site. This was good in 94% of loads.
However, on First Contentful Paint, Largest Contentful Paint and Cumulative Layout Shift, the site scores below Google’s speed benchmark.
This slightly surprised us.
We guess they’ve chosen to add customer experience elements like the home page video which slow the page speed down, and live with the impact on their search speed. They must believe the strength of their brand name, and scope and experience of their site is enough to minimise any search impact from slow page speeds.
Ghostery – 14 trackers
The slow page speed could also be linked to the 14 trackers running on the site. For comparison, JB HiFi had 10 and The Good Guys 9.
We wondered about the overlap with these trackers. Seven advertising trackers and four analytics trackers seems a lot. It’s hard not to believe there isn’t some duplication in what these trackers do. Removing unnecessary duplication would improve the site’s speed.
Wapplyzer – 53 applications
There’s 53 software platforms on this site. JB Hifi and The Good Guys only had 26 applications between them, so this site has more than double their combined total.
The applications cover analytics, social media, advertising, e-Commerce, marketing automation, payments, tagging, CRM and more. As per our article on martech challenges, two of the big three martech suppliers – Salesforce and Adobe – feature heavily.
We get the functionally of these systems. But it seems like a lot of software to manage and pay for. That many systems would add a lot of complexity – especially in how they work together – and cost. We assume they have rigorous e-Commerce testing processes to make sure the systems all run smoothly.
Dan Murphy’s Summary
Overall, it’s clear that Dan Murphy’s has invested heavily in their e-Commerce alcohol sales experience for shoppers.
Customer experience – Very smooth e-Commerce alcohol sales experience. Few complaints, other than the lack of guest check-out for delivery.
Marketing Technology -Clearly a large investment in technology. We suspect so many systems slow down their site though. We’re curious whether they need so many different martech systems and if they see a good return on investment.
Like Dan Murphy’s, Liquorland’s home page also scored well on user orientation.
Liquorland – where am I?
The brand name and logo was clear. Top left where you’d expect it. The URL was also clear. No confusion on where we were.
Welcome to Liquourland.
Liquorland – where do I begin?
After the logo, the first element we saw was corporate orders. This seemed odd. Though we know there’s a lot of business-to-business shopping in other categories, so assume alcohol is the same. (we know lots of online biscuit shopping comes from nurseries, hospitals and prisons for example).
It didn’t put us off, but it’s on a very prominent position that most shoppers will skip over.
That aside, next there’s a store selector, the shopping basket and a menu of alcohol categories.
Our eye was then caught by the search bar in the middle of the page. This was where we started.
This one offers a friendly prompt – “Hi, what are you looking for today?”.
But like Dan Murphy’s, the search function only lets us search on products, not site features like “delivery charges” or “returns policy”.
Again, this is a friction point for some customers.
Delivery information was down in the footer, though it’s quite a long home page. We had to scroll quite far to find it.
Returns policy wasn’t a direct link, and we had to go into FAQs to find it. It’d be clearer to have this as separate link in the footer.
It wasn’t impossible to find, but took more work.
Liquorland – What are the most important things?
The first things we saw after the search bar were “Popular Drinks”, “Special Offers” and then “Trending searches” which included links to Father’s Day and Cocktails. These were clearly the most important things.
However, price also jumped out as important. Look at the large font size for example (an example of priming as per our article on design psychology last week) and note that four out of the six products have visible price discounts. Good deals feel like an important thing at Liquorland.
Liquorland – Where did they put …?
Search, we already covered, and the basket is top right where you’d expect.
There’s a store selector which popped out in a side menu, but we could only select a store location with click and collect. We assume deliveries come from a warehouse and not from stores.
We had to scroll to the footer bar to find FAQs, delivery details, terms and conditions. That’s generally OK, although the FAQs were text heavy. Better would be clearer navigation help such as a table of contents.
Liquorland – Why did they call it that?
Like Dan Murphy’s, Liquorland keep the language simple.
No confusion about red wine, rose, white wine, sparkling / spirits, premix, beer, cider and specials.
It’s really only that “corporate orders” that might confuse. But if you’re not corporate, you’d just ignore it.
Ease of purchase
Following the same buying process as before, Shiraz comes up as the first option under Red Wine. There’s 236 bottles to choose from this time.
There were filter options like price, region, country and brand similar to Dan Murphy’s, but interestingly also “Goes with” and “Tastes Like”. These were welcome additions.
They felt very customer-friendly.
We noted there were only six filter options (rather than the ten of Dan Murphy’s) but considered this a positive rather than a negative.
In the well-known jam experiment for example, more choice actually reduced people’s ability to make a choice. Too much choice turns people off.
Six filter options didn’t feel like an overload here.
Picking a product
We chose the $20-$30 filter to narrow the choice, and picked the first one we saw which sounded good. Winton Road Barossa Valley Shiraz at $20.
The product page had everything you’d expect.
There was a clear product name and image, tasting notes, customer reviews and product information (like best occasions to use it, and what it pairs with).
Unlike Dan Murphy’s you could check out as a guest.
Filling out our details was relatively smooth (it found our address with Google Maps look-up for example), and it also added an optional “gift wrap” service.
There were three delivery options. Standard (up to a week) for $6.95, Same Day for $14.95, and Next Business Day for $9.95.
Payment was by credit card, Paypal or FlyPay – linked to FlyBuys points.
Overall, it was a slick check-out process and made it an easy e-Commerce alcohol sales experience.
Liquorland brand assets were clear on the page. Check the vibrant red and yellow colours. The tone of voice was warm, friendly and concise.
We understand Liquorland’s focus to be on price and value. Their site is consistent with this e-Commerce positioning. Overall though, there felt like a missed opportunity to add more brand connection on the page.
A tagline or simple purpose statement for example. More personality in the writing. Maybe some images that aren’t products or blurred out generic lifestyle photos. Nothing intrusive obviously, but from a brand connection point of view, the site felt a little flat.
Moz Domain Authority – 45
Not as high as Dan Murphy’s, but still respectable. It seems unlikely they’d have too many search issues with a 45 Domain Authority score.
Page Speed Index - 41
Their 41 speed score was better than Dan Murphy’s.
But it’s still below Google’s target score.
It had a good score for First Input Delay (92% green).
But it had amber scores for First Contentful Paint, Largest Contentful Paint and Cumlative Layout Shift.
Amber’s not bad, but there’s still room for improvement on the speed clearly.
Ghostery – 13 trackers
Almost as many trackers as Dan Murphy’s. Clearly a thing with online alcohol sellers.
There were advertising trackers, a customer interaction tracker, and tagging and analytics trackers. As with Dan Murphy’s we’d question whether all these are necessary. (though Liquorland didn’t trigger any browser tracking issues for us unlike Dan Murphy’s).
Wapplyzer – 22 applications
Significantly less software platforms than Dan Murphy’s, but still uses plenty of marketing technology. Less tech normally means faster load speeds.
We can see they run several analytics tools, so they clearly use digital data a lot.
Other applications cover tagging, caching, personalisation, marketing automation and advertising and more. This is similar in scope to Dan Murphy’s but interestingly, Liquorland only have one or two applications per function, where Dan Murphy’s has multiple applications.
Overall, another positive e-Commerce alcohol sales experience with the most noticeable difference being the martech that sits behind the site.
Customer experience – Very positive experience with few complaints. The “corporate orders” and the need to search the FAQs for the returns policy were the only elements we’d change.
Good that they allow guest check-out, which gives them an edge on Dan Murphy’s. We also liked the customer friendly filters.
Marketing Technology – Overall, less applications than Dan Murphy’s, but still good coverage across multiple martech platforms. Everything you’d expect from a martech point of view and faster page speeds than Dan Murphy’s.
We’d guess they spend less on martech, but probably get higher ROI levels per dollar spent, as there seems to be much less duplication.
Bundaberg is an iconic Australian rum brand, owned by global drinks giant Diageo. Its site is both brand marketing site and an online store.
Unlike the first two sites, we’d to verify our age to enter the site. This is standard practice for alcohol manufacturers. They want to make sure they don’t promote alcohol to minors.
Except of course, minors can just lie about their age. There’s no way to check the actual age of people viewing the site. We know the legal folks like to include this to protect the company, but it adds an annoying extra click for the vast majority of legitimate overage customers. (though it does give the site some insight into the ages of those customers, assuming they don’t lie).
Bundaberg – where am I?
The brand name and logo was clear. Unusually it was in the centre of the top navigation bar rather than the top left. This was a minor friction point when the norm is top left, but not enough to put us off.
Still, there was lots of clear Bundaberg branding in terms of logos, colours and products, so we definitely knew where we were.
Bundaberg – where do I begin?
There was less choice here compared to the previous sites, but then it’s a smaller site and range offer. The experience still felt fine though.
Products gave us the option to go the bottle shop (what we were here for) but also to look at merchandise, or specific products like Rum Ball liqueur or Lazy Bear premix.
There were also options to visit “our story”, the “distillery” and “recipes” – both food and drink.
The search function was in the top navigation bar – good. Though again it focussed on products, and you can’t search on “delivery charge” or “returns policy”. Less good.
Bundaberg - What are the most important things?
On the shop page, there was a large banner with free delivery over $250. (this seems high for free delivery).
Then we got a choice from four categories – Exclusive Range, Royal Liqueur, Master Distillers Collection and Bundle Offers.
It was a pretty simple layout.
Other than the $250 free delivery order the focus was on the products, not the e-Commerce service.
Bundaberg- Where did they put …?
Search was in the main navigation bar where we expected it.
On the shop page, there was an additional navigation bar above the main bar which had a contact number plus the account and basket links and a wish list link.
To find key topics like delivery information and returns and refund policies, we’d to go into the FAQ section in the footer. That was OK.
The site had everything we expected to find, and all in the places we’d expect to find them.
Bundaberg – Why did they call it that?
All clear on the language they used around e-Commerce itself, although if you don’t know the brand well, the product names were less clear.
For example, “Royal Liqueur” and “Master Distillers Collection” aren’t immediately obvious. When you clicked, there was no explanation, just the products themselves. These would be better with a short text explanation.
Ease of purchase
The product page was clear and had all the information we needed.
There’s the product name, the product images, the price and a good amount of product information.
Add to cart took us to the check-out, which was a two step process.
Firstly, for Shipping and then Review and Payments.
The shipping address request had a Re-Captcha request (which we didn’t see on either of the online retailer sites) to check we’re not a bot.
(Although if a bot wants to buy us a bottle of rum, we wouldn’t say no).
There was a flat $15 delivery charge unless we spent over $250. No options to speed up delivery. For Bundaberg, we’d imagine speedy delivery would be hard work for little return.
They won’t have the same distribution capability as the retailers. And most customers probably come here to buy the exclusive products, not the widely available main range.
Next came payment by Credit Card or Pay Pal, and options to apply Discount Codes and Gift Cards if we had them.
Nothing exciting as far as e-Commerce alcohol sales experiences are concerned, but did what they needed to so we could buy.
Branding’s strong, everything’s in the Bundaberg style. There’s a lot of yellow.
Given Bundaberg’s brand image, we felt they missed a trick to inject more “Bundy” personality into the experience. If you took away the logo and colours, it’s quite a generic shopping experience. (there’s more personality on the brand pages).
Maybe a more creative use of the bear logo. A bit more personality in the tone of voice. Nothing intrusive, but it’s definitely missing something.
Moz Domain Authority – 39
For a branded (non-retail) site, this is a reasonable score. It has a huge amount of links (almost 67k) which seem to be a mix of corporate links (e.g. from news sites and the local NRL club for example) and fan sites.
Page Speed Index - 63
Clearly, a better score than the two retailer sites.
This is due to it being a much simpler site, with less complexity. Simpler sites load faster.
It was green on both First Contentful Paint and First Input Delay, Amber on Cumulative Layout shift and only Red on Largest Contentful Paint.
It’s still not in the top Green rank from Google overall, but 63 isn’t too bad.
Ghostery – 2 trackers
Only 2 tagging links. This was clearly not an area of focus for Bundaberg compared to how much analysis, advertising and tagging goes on with the two retailer sites.
Wapplyzer – 19 applications
A decent amount of software platforms on the site, with the most noteworthy being e-Commerce done through Magento (now part of Adobe). There’s basic analytics and tagging, though no other platforms that you’d class as particularly advanced (or expensive).
Nothing as sophisticated as the retail stores, but enough martech to support a simple e-Commerce alcohol sales experience.
Overall, for a one brand shop, it’s a good overall experience. A bit short of data capture on the martech front, but otherwise it does what it needs to.
Customer experience – A clunkier start than the other two with the Date of Birth sign-in.
But after that, it’s a nice simple e-Commerce alcohol sales experience. Nothing flashy.
If you want to buy the product, you can buy the product. The only challenge is you can’t get it delivered quickly.
Marketing Technology – Overall, the least technologically sophisticated of the three sites. Not that surprising.
For Diageo, this won’t be their main online sales channel. This’ll be a small addition to the Bundaberg business, so won’t get the same level of resource or investment. We’d be most interested in seeing if they actually do anything with the analytics and tracking they have.
What we took from this brief e-Commerce alcohol sales experience how similar the journey to buy booze online was, no matter where you tried to buy it. The actual process was remarkably similar.
That’s not a bad thing.
There were some minor differences, but for the most part, the actual steps and layouts to buy booze stayed consistent.
That’s good for customer experience.
It means the main competitive points of difference are other areas like price, range or exclusive products.
Dan Murphy’s and Liquorland seem to have invested heavily in their online stores.
Dan Murphy’s is particularly tech heavy. We assume there’s no performance or integration issues with all that tech. We also assume they have solid data management processes and they’re happy with the return on investment, as we felt they may have areas of duplication.
Liquorland has some nice additional customer experience touches like the “Order with” and “Pairs with” options. We liked these. Their martech approach to cover key functionality with 1 or 2 core applications seems sensible. It probably keeps their finance team happy too.
Bundaberg we applaud just for having a D2C site. We were originally going to use some wine examples in this article, but going to some of the big Australian wine brand sites, D2C was either not there or badly done. So fair play to Bundy for setting this up for customers.
Lots to learn from this customer experience and martech research into e-Commerce alcohol sales. Thirsty work, but someone has to do it.