Better Amazon or Tiwol for Made in Italy food and wine?
A question that is often asked of me, "but why do you invest in this sector, there is already Amazon!" Or "There are many retailers who have been selling food products online for some time and are specialized in the sale of typical products!"
With today's article, I want to answer all those who wonder why the Amazon model cannot work for local Italian producers. Made in Italy, and in particular that of the food and wine sector, is a special market. The products are unique, they are not industrial style products, every day our artisans carefully select each ingredient with their own hands to offer true excellence. Choosing the quality raw material and opting for a manual or artisanal manufacturing process has much higher costs than the simple intensive production of the industry. A local producer will therefore have to sell their final product at a higher price than the industry. But not only that, in fact, any type of company needs to develop its reputation within its market. So why is Amazon or a specialized retailer not the ideal solution for small Italian producers? First of all, in terms of brand reputation, a retailer or Amazon itself does not give the craftsman the opportunity to retain their customers. Any customer who purchases from Amazon will always receive products purchased in Amazon's name, from packaging to transportation. This leads to loyalty towards Amazon itself or the retailer. In the case of food products, a manufacturer who sells on Amazon in addition to facing the high competition with a lower price will have to bear the monthly fixed costs of the platform and deduct sales commissions equal to 30% from its own margin. Furthermore, the products placed on Amazon are not categorized based on quality but based on the lowest price, this means that the products are not valued in the right way, often appearing among lower quality products, damaging the brand of our producers. For retailers specializing in typical products, the logic is the same but it must be added that the manufacturer will not be able to fully manage the volume of its sales, not knowing at what price the retailer positions its products, where, and in what way. We at Tiwol believe that made in Italy needs an online place where producers can independently manage their brand and products, in an easy and transparent way. In fact, with Tiwol the local producer manages each sale independently, from packaging to shipping, without intermediaries. This allows them to express the full potential of their brand, create the right reputation around their products and sell a high-quality product at a fairer price that will arrive in the customer's hands at the best price on the market.