WineBusiness.com reports that Amazon.com had been planning to add a wine category but they have decided to hold off.
"As you know, we were excited to work with you to build the AmazonWine business, Rao said in an email that went to winery partners. "For that reason, this was a very tough choice for us. "Many of you took the time and leap of faith to really support us."
Amazon had been working on a wine launch and had at one point inked a deal to use New Vine Logistics of American Canyon, California to fulfill orders. The plan was to create a consignment system, where wineries earned 47 percent of the retail price for wine when sold.
CNET notes that Amazon invested $30 million in WineShopper.com in 1999. A Wall Street Journalsays Amazon.com's decision to halt its wine delivery plans may have to do with financial troubles at its partner New Vine Logistics and the complex wine shipping laws that vary in many states.