Amazon Wine Will Shut Down at the End of 2017

After five years of business, Amazon Wine will close down at the end of this year.

Amazon alerted sellers of the news on Monday, according to Tech Crunch. The service, which launched in 2012, allowed third-party producers and sellers to offer their wines online through Amazon Wine. 

Retailers, bars and restaurants that have kept an eye on the ever-evolving e-commerce giant should not take this as a sign of Amazon pulling back from wine, however.

Reportedly, the reasoning behind this decision had to do with legal issues. There were conflicts with the company running Amazon Wine at the same time as Wholefoods, which Amazon purchased earlier this year. In other words, this decision is not about Amazon looking to exit the wine category.

Amazon will continue to allow wine sales on its website, just not through the soon-to-be-shuttered Amazon Wine. And the company will still sells wine through Wholefoods, with the threat of Amazon’s at-home alcohol delivery looming over the industry

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