March 2021 - 30

FARM MARKET & AGRITOURISM
Create efficiencies for filling online customer orders
BRIAN MOYER
Penn State Extension
bfm3@psu.edu
having " pick zones " in the store with
signage that promotes your e-commerce.
Barb Dietrich, owner of Oley Valley
During the pandemic, most businesses
had to develop an online ordering system
and do it quickly. That meant there wasn't a
lot of time to evaluate this market channel
to see if we are actually making money or
figure out what it is costing us.
Experts within the grocery industry
were saying, " Yes, online ordering is
necessary, and it is costing us, and we don't
know how much, but we need to do it and
figure it out later. "
Predictions are that online ordering
will be a $250 billion business within
five years. That is more than $100 billion
more than what was predicted before the
pandemic. Customers flocked to online
ordering because in most cases, it felt like
a safer way to shop and for others, it was
convenient. National Retail Federation,
2020 says that 63% of consumers surveyed
said convenience is very important
when purchasing groceries. 52% said
their purchase decisions were based on
convenience. This has also attracted new
customers to our shops. Farmers' markets
Boxes filled with farm-fresh goods. Photo: Boulder County Farmers Markets
that have added online ordering are seeing a
demographic shift at their markets. Younger
families came to rely on markets as part of
their regular food shopping. Keeping and
improving the online shopping experience
will help to keep those new customers
shopping at our markets.
So, online ordering is here to stay and
is a marketing channel that needs to be
managed - particularly our labor costs.
There are labor costs associated with the
online presence making sure inventory
is correct and product descriptions are
accurate and that the shopping experience
is a good one. Then there are the labor
costs in filling the orders.
Depending on the number of orders
per day, it may be more efficient if you
have employees pulling items from
shelves if the number of orders is small.
If you have larger order numbers per day
you should consider having a dedicated
fulfillment space particularly for fastmoving
items. Customers do get annoyed
when store employees get in their way by
filling online line orders while customers
in the store are trying to shop. We need to
figure out how we can make the shopping
experience a pleasant one for both
in-store and online customers.
If you are lacking backroom space for
a dedicated order fulfillment, consider
Organic, said they print two copies of the
order, one for the customer as a receipt
and one as a pick list. Items on the list
are highlighted. Blue for frozen items,
yellow for cooler items and shelf stable
left unhighlighted. Items are bagged and
marked with the customer's name and
number of bags, such as " 1 of 3, " to ensure
that the customer receives all their items.
Barb says that online ordering is now a
part of their business and customers like
the convenience of being able to order
any time of day and pick up their items on
their way home from work.
We must consider how the customer
receives their order. Most people associate
online ordering with home delivery, but for
the grocery industry it turns out that more
and more customers prefer to pick up their
orders. There are fewer fees and one less
person handling their food. This provides
more control over when they get their
order. It also allows them the opportunity
to purchase more items they may forget to
put on their order. Include a number the
customer can text when they arrive at the
market so someone can bring their order
to their car.
Whether ordering online or in-person
shopping, it's all about the customer. VGN
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March 2021

Table of Contents for the Digital Edition of March 2021
