Ask the Collective
The questions independent drinks founders ask most — answered. Distilled from years of community knowledge so the good stuff never disappears in the feed again.
What logistics strategies do members use to minimise lost or delayed deliveries when sending stock to Amazon FBA?
Members have moved away from bulk Amazon Freight (£900+ per delivery) due to high costs and reported inventory loss, instead using smaller, more frequent shipments routed through third-party carriers. **Key tactics:** - **UPS small parcel via Amazon's partnered carrier service** — Members report this is their primary solution. Stock can be sent in box form (not pallets) at roughly £35 per consolidated shipment instead of £69+ for pallet delivery. UPS collects from 3PL and delivers to Amazon within 2–3 days. Note: This approach works best if your product format allows pre-boxed, ready-to-ship stock (one member noted they are non-alcoholic, so suitability may vary by category). - **Smaller, more frequent deliveries** — Multiple members explicitly avoid bulk shipments because items routinely go missing in Amazon's fulfillment centres for weeks. Splitting deliveries increases operational overhead but reduces the risk exposure per shipment. **Caveats:** Members have experienced Amazon "losing" deliveries sent in May with no resolution from customer services, so they operate cautiously and document carefully. The scale of the problem (items disappearing for weeks in "the Amazon black hole") suggests the carrier/method choice matters less than frequency—spread risk across multiple smaller inbound shipments rather than betting on one large delivery.
What software and strategies should we use for managing inventory and pricing, particularly for stock held under excise duty bond?
Members recommend a practical approach to inventory management that balances regulatory compliance with cost-effective tooling. **Inventory software:** - **Xero native inventory system** — members have raised serious concerns about whether the built-in Xero inventory module can properly handle wine and spirits stored under excise duty bond, so validate this thoroughly before relying on it as your sole solution. - **Unleashed** — commonly used by members but flagged as expensive for smaller operations, so evaluate against your budget and complexity needs. **Pricing and margin calculation:** - **thinkMargin app** — recommended as a useful, accessible tool for calculating margin, cost and price conversions; particularly helpful given the distinction between markup (cost-based) and margin (sell-price-based) that retailers typically prioritise. - Retail margins typically run 30% in the spirits and wine sector, though this varies: premium retailers demand larger margins, convenience stores work on smaller margins for faster-moving products, and margin % is generally higher on wine than spirits. Importantly, retailers focus on cash margin (absolute pounds/pence), not just percentage—so a high-value product like Louis XIII may carry lower percentage margin but higher cash margin than lower-priced stock. **Stock management around regulatory changes:** - Pre-buy stock before duty increases or regulatory changes take effect (monitor news for lobbying outcomes, as these can affect timing). - Coordinate with your warehouse team in advance, as many businesses will be doing the same and capacity/timelines will be tight. - Expect wholesalers and big producers to post new price lists on the effective date, with across-the-board increases of a few pounds per bottle likely. **Caveats:** If you hold stock under excise duty bond, standard inventory software may not be fit-for-purpose—test any system thoroughly before committing. Margin calculations depend heavily on your product category and rate of sale, so use thinkMargin or similar tools to model your specific scenario rather than assuming the 30% benchmark applies uniformly.