It completely changed the way millions think about buying books and now Amazon.com is looking to do the same thing with wine.
According to a report by the Financial Times, Amazon is poised to enter the wine retailing business despite numerous regulatory obstacles and the experience of other merchants who followed a similar path and failed.
Amazon is said to be looking to bring on board a senior wine buyer who will help it in "the acquisition of a massive new product selection."
Right off the bat, Amazon will find itself limited by laws that only permit it to ship wine to 26 states across the country. In 10 states, the retailer will need to open wine distribution centers so it can comply with laws requiring it to purchase stock from licensed wholesalers.
Closer to its home base, Amazon has said it plans to add wine and beer to the products its sells and delivers to customers in the Seattle area as part of the company's Amazon Fresh grocery home delivery service.
Chris Adams, an executive at the wine retailer Sherry-Lehmann, is hopeful that Amazon's move into the business will help the industry's efforts to remove some of the barriers to interstate wine sales. "It is a nod to the fact that the laws of the land are changing and that open markets will win the day," he told the Financial Times.
Discussion Questions: What will Amazon's entry mean for wine retailing in the U.S.? What will Amazon need to do if it is to be successful in this venture? What will other merchants need to do to address this new competitive challenge from Jeff Bezos and company?