June 2020 - 24

FARM MARKET & AGRITOURISM
How to implement e-commerce in a food or farm operation
BRIAN MOYER
Penn State Extension
bfm3@psu.edu
Sales of food and agricultural
products direct to the consumer
through e-commerce have also been
increasing, most recently due to the
COVID-19 pandemic.
In March 2020, 31% of U.S.
households, or roughly 40 million,
used online grocery services like home
delivery and pick-up, according to retail
consulting firms Brick Meets Click and
ShopperKit.
This is more than double the number
of monthly users from August 2019,
when the firms estimated 16 million
Americans had shopped online. Total
monthly order volume among users
surged 193% and monthly order rates
were up 19% compared to August 2019.
Even for business owners that
recognize how e-commerce can
benefit their farm business, there
are numerous considerations behind
the decision to strategically utilize
e-commerce beginning with the choice
of platform to use.
Not all businesses will necessarily
benefit from purchasing an e-commerce
platform. It is possible that simpler
models of taking orders and payment
over the phone or using online forms
to place orders with payment by card or
cash at time of pickup or delivery will be
a better fit for overall business goals and
available resources.
If e-commerce aligns with your
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FOR 60 YEARS!
BY YOUR
SIDE
long-range business plan, the following
issues should be reviewed as you assess
platform options.
Online store traffic and anticipated
number of transactions. Estimate
the return on investment from the
implementation of an e-commerce
platform. If you anticipate low- to
moderate- transactions from online
sales, investing in an expensive
e-commerce platform with numerous
features may not be wise.
Cost and fees. Each platform will
have its own pricing structure, with most
charging a monthly service fee beyond
any initial set-up fee. Ensure that you
know whether the platforms you are
considering are displaying monthly fees
with or without payment transaction
fees, if they exist.
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June 2020

Table of Contents for the Digital Edition of June 2020
