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The shipping information you provide determines the deliver delivery (shipping and handling) costs ) that appear on the exchange and differ greatly according to the end destination.
Our delivery (shipping and handling) Delivery costs are determined by three factors:
How much does it cost to ship and import the bottle from Argentina to your destination country. This is called the “landed cost”“landed cost”.
How much does costs for us to courier the wine from the importer in your country to your destination. This is the “domestic shipping costcost”.
Ethereum gas fees for executing the token redeem.
All of the costs of redeeming tokens, landed cost, domestic shipping, and Ethereum gas fees, though estimated in USD, are paid in ETH, the base cryptocurrency of the Ethereum blockchain. So, in order to redeem your tokens for bottles of wine, you need to have sufficient Ether (ETH) in your wallet.
The current landed and domestic shipping costs can be found in this table.
Landed Cost
The “landed cost” can vary greatly from country to country.
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The cost of shipping bottles from the winery by land to a boat on the coast. (This is usually done in multiple pallets of 800+ bottles of wine.
The export duties and handling expenses (Argentine customs).
The shipping costs and insurance to move bottles by boat from Argentina to your country.
The import duties (excise taxes and tariffs) imposed by your country.
The importer expenses of receiving, processing, and storing the palletswine.
As an example, the landed cost of bottles of “Mike Tango Bravo 2018” (MTB18) shipped from the Costaflores winery in Mendoza to our importer in New York cost approximately $5 USD per bottle.
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The Landed Cost for wines shipped within the origin country (Argentina, in this case) is $0 as there are no export/import or trans-national shipping costs involved.
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Again, as OpenVino grows, and our distribution network expands (with warehouses for OpenVino labels in different regions within countries) the cost of domestic shipping will should also come down.
Final cost formula
Therefore the cost of delivery, redeeming tokens for bottles of wine, as presented by on the OpenVino.exchange is:
(Domestic shipping Cost [up to 6 bottles]) + (Landed Cost x Number of bottles) = Shipping cost.
For example, if you are redeeming 10 tokens in for wine shipment to the state of Missouri, in the USA, the cost would be:
Domestic Shipping for 2 boxes = ($12 x 2) = $24
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Landed Cost ($7) x 10 = $70
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Total cost = $94 USD for delivery of 10 bottles.
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It is more cost effective to redeem tokens for wine in units of 6. |
Ethereum gas fees for token redemption
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When OpenVino first tokenized wines in 2018, gas fees were measured in pennies. Today, gas fees can range from a few dollars to tens of dollars. The recent Ethereum “Merge” will hopefully help to bring down these gas fees as transaction costs are reduced. At OpenVino we are constantly evaluating other alternatives to help reduce or eliminate this cost.
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It is less expensive to execute large redeems in one transaction, than multiple small redeems. Ethereum gas fees are for the transaction, and NOT based on the volume of the transaction. |
Wait, this too expensive!
Yes, we are aware that the redeem costs are much higher than we would like them to be. Going forward the strategy to reduce this expense to the drinker is three-pronged:
Increase the number of wineries participating on OpenVino, enabling shipping consolidation to reduce logistics costs.
Work with different domestic couriers, bundling shipments, and enabling real-time cost determination through API’s.
Drastically reduce gas fees by incorporating (layer 2) services on Ethereum or by using different blockchains or smart-contract mechanics.
What happens to the token after I redeem my wine?
The token is “burned” or eliminated from the blockchain. One token equals one bottle of wine. So as soon as you redeem the token for a bottle of wine, the token disappears forever.
How Much does OpenVino or the Winery earn from the redeem process?
OpenVino earns $0 from the redeem process.
In principle, the winery also receives zero revenue from the redeem process. However, actually costs, paid by the winery or importer, may fluctuate from day-to-day, causing a minor windfall or shortfall for the winery. Integrating automatic domestic courier charging and fine-tuning the landed cost calculations with real-world data over time will reduce this delta.
What if I am redeeming large volumes of tokens?
Yes, if you are redeeming large quantities (100’s of tokens), you can specify the winery as the delivery destination (for example: Argentina-Costaflores), and speak with the winery to organize a will-call delivery on whatever better shipping terms are available.
For example, if you an importer in another country, you can simply specify the winery delivery point, burn the tokens, and negotiate optimal delivery conditions with the winery. You will still need to burn the tokens, and incur the ethereum gas fees, but the landed cost and international shipping costs can be assumed by the buyer.
Can I take pick up the wines directly from the winery?
Sure! In this case, the landed cost and domestic shipping costs are zero. You specify the winery as the delivery point. You will still need to burn the tokens, and incur the ethereum gas fees, but no additional expenses are added.
Current Shipping Costs
Domestic Shipping | Landed Cost | Country | Province/State |
$3.40 | $0.00 | Argentina | Mendoza |
$7.40 | $0.00 | Argentina | CABA |
$5.00 | $0.00 | Argentina | Buenos Aires |
$0.00 | $0.00 | Argentina | Costaflores |
$6.40 | $0.00 | Argentina | Catamarca |
$7.40 | $0.00 | Argentina | Chaco |
$8.00 | $0.00 | Argentina | Chubut |
$7.40 | $0.00 | Argentina | Córdoba |
$7.40 | $0.00 | Argentina | Corrientes |
$7.40 | $0.00 | Argentina | Entre Rios |
$7.40 | $0.00 | Argentina | Formosa |
$7.40 | $0.00 | Argentina | Jujuy |
$7.40 | $0.00 | Argentina | La Pampa |
$7.40 | $0.00 | Argentina | La Rioja |
$7.40 | $0.00 | Argentina | Misiones |
$8.00 | $0.00 | Argentina | Neuquén |
$8.00 | $0.00 | Argentina | Rio Negro |
$7.40 | $0.00 | Argentina | Salta |
$7.40 | $0.00 | Argentina | San Juan |
$7.40 | $0.00 | Argentina | San Luis |
$7.40 | $0.00 | Argentina | Santa Cruz |
$7.40 | $0.00 | Argentina | Santa Fé |
$7.40 | $0.00 | Argentina | Santiago del Estero |
$8.00 | $0.00 | Argentina | Tierra del Fuego |
$7.40 | $0.00 | Argentina | Tucuman |
$10.00 | $2.00 | Spain | Andalucia |
$10.00 | $2.00 | Spain | Aragón |
$10.00 | $2.00 | Spain | Asturias |
$10.00 | $2.00 | Spain | Islas Baleares |
$10.00 | $2.00 | Spain | Canarias |
$10.00 | $2.00 | Spain | Cantabria |
$10.00 | $2.00 | Spain | Castilla La Mancha |
$10.00 | $2.00 | Spain | Castilla y León |
$10.00 | $2.00 | Spain | Catalunya |
$10.00 | $2.00 | Spain | Valencia |
$10.00 | $2.00 | Spain | Extremadura |
$10.00 | $2.00 | Spain | Galicia |
$10.00 | $2.00 | Spain | La Rioja |
$10.00 | $2.00 | Spain | Madrid |
$10.00 | $2.00 | Spain | Murcia |
$10.00 | $2.00 | Spain | Navarra |
$10.00 | $2.00 | Spain | País Vasco |
$10.00 | $2.00 | Spain | Ceuta |
$10.00 | $2.00 | Spain | Melilla |
$15.00 | $7.00 | USA | Alabama |
$36.00 | $7.00 | USA | Alaska |
$15.00 | $7.00 | USA | Arizona |
$15.00 | $7.00 | USA | Arkansas |
$60.00 | $7.00 | USA | California |
$36.00 | $7.00 | USA | Colorado |
$24.00 | $7.00 | USA | Connecticut |
$24.00 | $7.00 | USA | Delaware |
$15.00 | $7.00 | USA | Florida |
$15.00 | $7.00 | USA | Georgia |
$36.00 | $7.00 | USA | Hawaii |
$15.00 | $7.00 | USA | Idaho |
$12.00 | $7.00 | USA | Illinois |
$12.00 | $7.00 | USA | Indiana |
$12.00 | $7.00 | USA | Iowa |
$12.00 | $7.00 | USA | Kansas |
$12.00 | $7.00 | USA | Kentucky |
$15.00 | $7.00 | USA | Louisiana |
$24.00 | $7.00 | USA | Maine |
$24.00 | $7.00 | USA | Maryland |
$24.00 | $7.00 | USA | Massachusetts |
$12.00 | $7.00 | USA | Michigan |
$12.00 | $7.00 | USA | Minnesota |
$15.00 | $7.00 | USA | Mississippi |
$12.00 | $7.00 | USA | Missouri |
$15.00 | $7.00 | USA | Montana |
$12.00 | $7.00 | USA | Nebraska |
$20.00 | $7.00 | USA | Nevada |
$24.00 | $7.00 | USA | New Hampshire |
$6.00 | $7.00 | USA | New Jersey |
$20.00 | $7.00 | USA | New Mexico |
$6.00 | $7.00 | USA | New York |
$12.00 | $7.00 | USA | North Carolina |
$15.00 | $7.00 | USA | North Dakota |
$12.00 | $7.00 | USA | Ohio |
$15.00 | $7.00 | USA | Oklahoma |
$25.00 | $7.00 | USA | Oregon |
$24.00 | $7.00 | USA | Pennsylvania |
$24.00 | $7.00 | USA | Rhode Island |
$15.00 | $7.00 | USA | South Carolina |
$15.00 | $7.00 | USA | South Dakota |
$15.00 | $7.00 | USA | Tennessee |
$18.00 | $7.00 | USA | Texas |
$20.00 | $7.00 | USA | Utah |
$24.00 | $7.00 | USA | Vermont |
$15.00 | $7.00 | USA | Virginia |
$6.00 | $7.00 | USA | Washington |
$15.00 | $7.00 | USA | West Virgina |
$15.00 | $7.00 | USA | Wisconsin |
$20.00 | $7.00 | USA | Wyoming |