"Direct selling is the real strength for alcohol producers, but obstacles such as excise duties and customs procedures force them to rely on intermediaries, reducing their product margins."
Choosing to rely on an importer may seem like the obvious path for selling to private customers abroad, but doing so eliminates all the benefits of direct sales. There is no autonomy, no immediate revenue, no relationship with the final consumer, and most importantly, your margins are halved.
Sharing your passion and the fruits of your labor with your customers creates an unbreakable bond between producer and visiting client. Direct sales become the rightful reward for the investments made in hospitality infrastructure.
However, when it comes to tourists, direct sales face significant hurdles: transport limitations and shipping requirements entangle you in the complex bureaucratic maze. On one side, you’re confronted with excise duties, and on the other, with customs taxes and procedures, deterring you from discovering the substantial benefits of direct selling. Additionally, there’s the awareness that “old methods” no longer work.
Detaching the cost of shipping from the product, self-shipping, or other risky methods are things of the past, especially after the implementation of DAC7 in January 2024 to prevent tax evasion: read more in the article.
Our research shows that by increasing the percentage of direct sales from 10% to 30%, producers already experience visible benefits to their final margins, with total revenue increasing by half.
What’s the explanation behind these numbers? It’s quite simple: when using importers, a producer retains about 30% of the product’s value. However, by selling directly to the end consumer, margins soar up to 70%, and more importantly, revenue is immediate.
Have you ever considered how many opportunities you are missing because you are not leveraging the activities and resources you already have? Why not open up your direct sales channel internationally?
Profits from your activities will come from multiple sources in a multi-channel approach. First, from on-site sales, directly receiving payment from the end customer after a tasting. From there, knowing your customer, the importance of the data collected becomes evident: a fundamental aspect for customer loyalty and remarketing. And once the tourist season ends, repeat purchases will continue remotely, for example through your e-commerce platform.
Think for a moment about the unique relationship you create with your customers and all the investments you’ve made in your business. You deserve to get the most out of your efforts, especially when the solution is within reach.
One decision becomes clear: sell more to private customers and less through intermediaries that cut into your margins. It’s not a utopia; it’s already possible: you just need the right solution and the right partner.
Want to understand how to enhance your work through direct sales abroad?
