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Direct to Trade w/ distributor

Thursday, January 31st, 2008

Current laws allow wines to be shipped direct-to-trade IF a distributor is involved in the transaction. The distributor is responsible to pay the taxes, and…well, thats it. A virtual inventory portfolio is – all of the wines, that a distributor represents, in the direct-to-trade markets.

Supplier’s take their inventory, and place it in a fulfillment/distribution warehouse, where it is kept on consignment basis. (technically, this could be the distributor’s warehouse) The supplier is responsible for shipping it to the warehouse, and is responsible for all the costs of warehousing the wine. When a trade order is placed for the wine, it ships directly from this fullfillment center to the restaurant/specialty shop/retailer. Once the wine is delivered, the monies to cover the taxes are then transferred to you, the distributor, along with a ‘virtual portfolio handling fee of $3-$5 / case. (more…)

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