Interestingly, the agriculture industry has long been keen to find ways to adapt eCommerce into its daily operations. Many of the advantages of eCommerce to the industry are clear. Previously, the problem was how to adopt new technology to the sector. However, recent innovations in data analytics, artificial intelligence, machine learning and logistics have collided to create a perfect storm for agriculture. Since then the industry has benefited immensely from eCommerce technology. Particularly, the efficiency of inventory management systems which help cut waste and maximize profits. Online stores reach a wider range of customers nationally and globally. Fortunately or unfortunately, the big eCommerce giants Amazon and eBay have targeted this market.
There are many benefits of eCommerce in agriculture. Market diversification is a big one for many managers. eCommerce expands the marketing portfolio of businesses which is something many in the agri business need. It also expands the customer base of individual business and this should be the same in this sector. Businesses can also benefit from product details and suggestions for additional or complimentary products. For the customer, it is very convenient and new habits means this is what customers require going forward. It also enables agri business to gather and process key data for the strategic business advantages. Machine learning and data analytics in general have made this easier.
In India, the huge agriculture sector has been forced to find a way to integrate eCommerce into operation. The sector is the backbone of the economy and accounts for half of the country’s workforce. The growth of this industry is tied to the success of other industries including manufacturing and services. Efficiency gains are the key to profitability in the sector and that is what eCommerce brings. Especially when it comes to catering to a large customer base. Digital upgrade in the industry will help gain efficiency in supply chain, transportation and marketing efforts.
Many agritech startups in this tech savvy country are popping up to take advantage of the big eCommerce potential. One such company is Delhi based Fruit Box and Co. The company delivers fruits and vegetables from the farms directly to customers. Jaivikkheti is another company which has found success linking farmers directly with retailers. A B2B model unlike Fruit Box.