The numbers don’t lie. A recent Market Watch feature on third-party delivery marketplaces revealed something remarkable about Gary’s Wine & Marketplace. Their own mobile app generates 50% of online sales. Meanwhile, third-party platforms like delivery apps? Just 1% of total business.
This isn’t coincidence. It’s the power of owning your customer relationship.
The Multi-Channel Challenge
Third-party delivery apps serve an important role in today’s retail landscape. They provide convenience and help retailers reach new customers. But relying solely on these platforms creates business challenges.
Here’s what retailers are experiencing:
Commission fees impact margins. As Sparrow Wine & Liquor’s owner notes, “I am paying a large commission on it and losing money in some transactions.”
Limited customer relationship building. Third-party platforms handle the customer interaction, making it harder to build direct relationships.
Reduced brand visibility. Your store competes alongside many others within the same app interface.
Your Mobile App Changes Everything
Gary’s Wine & Marketplace saw the writing on the wall. They launched their own mobile app powered by City Hive. The results speak volumes.
Better Customer Behavior
Mobile app customers outperform website visitors on every metric:
- Higher conversion rates
- More frequent visits
- Larger basket sizes
Direct Customer Connection
Gary’s sends push notifications to over 40,000 app users. That’s 40,000 customers they can reach instantly without paying commission fees.
Profitable Growth
While third-party apps generate incremental volume, your own app builds lasting relationships. Customers who download your app become repeat buyers, not one-time transactions.
The Real Cost of Third-Party Dependence
Sparrow’s experience reveals the hidden costs. Their average website sale hits $165. But third-party app customers spend the same amount while the store pays hefty commissions.
“Even though we have a price advantage on our website, the convenience of the apps and their value proposition outperforms our value proposition in the eyes of apparently a large percentage of consumers,” admits Sparrow’s owner.
Take Back Control
The solution isn’t abandoning third-party platforms entirely. Smart retailers use them for discovery while directing customers to their own channels.
Twin Liquors runs over 100 stores. They use DoorDash and other platforms alongside their City Hive-powered app. This multi-channel approach serves different customer needs while maintaining control.
Your Customers Want Direct Access
Mobile app ordering continues growing. But customers also crave authentic experiences that apps can’t replicate:
- In-store tastings
- Educational events
- Personal recommendations
- Curated selections
Your mobile app bridges this gap. It delivers convenience while preserving your unique value proposition.
The Bottom Line
Third-party apps aren’t going away. But they shouldn’t be your primary customer relationship channel.
Your own mobile app gives you:
- Direct customer communication
- Better profit margins
- Valuable customer data
- Brand control
Gary’s Wine & Marketplace proves it works. Sparrow Wine & Liquor sees the necessity. Twin Liquors executes the strategy.
The question isn’t whether you need your own mobile app. It’s how quickly you can launch one.
Read the full Market Watch article “Third-Party Delivery Marketplace Heats Up” for more insights on the evolving alcohol delivery landscape.
