What Is the Vinovest Marketplace and How Does It Work?

The Vinovest Marketplace is a first-of-its-kind trading platform for wine investing. If you’re new here, you may have some questions about how it works. This guide will walk you through buying, selling, and bidding processes so that you can trade like a pro in no time. 

What Is The Vinovest Marketplace?

The Vinovest Marketplace is a live online trading platform where users can buy and sell investment-grade wine. Buyers place bids. Sellers place asks. When a bid and ask match, the transaction takes place automatically. Vinovest will take care of the authentication and insurance processes so that users can focus on the most important part - investing.

Here are a couple of key features in the Vinovest Marketplace:

• Real-time transaction
• Automatic ask-bid matching
• 24/7 access

That’s not all. Users can buy and sell individual bottles of investment-grade wine. If that doesn’t seem like a big deal, consider this. Before January 30, 2022, there was no platform where investors could invest in single bottles of fine wine. That only changed with the debut of the Vinovest Marketplace.

How Does It Work?

Buying on the Marketplace

On the Vinovest Marketplace, we don’t set the price. Users do. So, when they find the perfect wine for their portfolio, they can purchase it at the real-time market value. 

Here’s how buying works:

1. Place a bid. The bid must be equal to or above the lowest listed asking price. 
2. We confirm. When a bid and ask match, the sale initiates automatically.
3. Receive wine. Vinovest will transfer the bottles into the buyer’s portfolio and the proceeds to the seller.

This buying process allows anyone to buy wine instantly. However, some users prefer a lower price. In that case, they can place a buy order below the asking price. The bid will not initiate a transaction, but it will signal to sellers how much buyers are willing to pay for their wine. If the buyer and seller meet in the middle, then the transaction will take place.

Users can also place buy orders on wines that are not listed for sale on the Vinovest Marketplace. The bid tells potential sellers what someone would be willing to pay if that wine were to become available.

Selling on the Marketplace

Whether users want quick cash or to test the market, selling provides the tools sellers need to succeed. Here’s how to turn that Pavie or Petrus into a profit.

1. Place an ask. The ask indicates a willingness to sell a certain number of bottles at a certain price.
2. We confirm. Again, Vinovest has this step covered automatically.
3. Receive money. Vinovest will transfer the money from the buyer to the seller minus a 1% selling fee. Cha-ching!

Not sure of the ideal asking price? The Vinovest Marketplace displays the last trade price, which represents the most recent transaction price for a particular wine on the platform. You can also check out the Vinovest Estimate, which represents our estimation of a wine’s fair market value.

Differences Between Vinovest Marketplace and Collections

There are two times users can invest in wine: during collections and after collections. 

A collection is a curated group of rare wines hand-selected by the Vinovest sommelier team. These wines are released biweekly, sometimes below market price. During the collection is the first time users have access to a specific wine on the Vinovest Marketplace. 

After the collection, users can list their wine for sale on the Vinovest Marketplace. (The keyword is can.) It offers a fast and easy way to resell wine and potentially turn a profit.

Here are other differences between the Vinovest Marketplace and collections.

Frequently Asked Questions

How will I know if my order is filled?

Clients will receive an email notification letting them know their order was filled. Vinovest plans to add a dedicated “Activity” tab so that users can keep track of their orders and transactions.

What happens when I place a buy order?

When a client places a buy order, funds are removed from their account and placed on hold until the order is filled. They will be unable to use these funds for other purchases unless they cancel the buy order. If the order is not filled, the funds will be returned to their account.

What happens when I place a sell order?

When a client places a sell order, the wines are removed from their account and placed on hold until the order is filled. They will be unable to place other sell orders with those wines unless they cancel the open order. Once their order is filled, the gross profit will be added to their cash balance, and the wines will be sent to the buyer’s trading portfolio.

What is the time limit for my buy order?

A buy/sell order does not expire. It will remain live on the marketplace until it is filled or the client decides to remove it.

How do I cancel a buy order?

Go to the Vinovest Marketplace and select the wine with the order you want to cancel. At the top of the page, click “Order Placed.” Hit “Cancel” for the buy orders you want to remove.