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Internet Markets
Brief Description
Internet marketing systems can vary from a simple e-mail ordering system to an online store with shopping cart. All involve making a web presence with a list of products for sale and a way for customers to order the products. A system is put in place whereby the customer can pay for the products by credit card, third party vendor or check. Products may be delivered or picked up if the customers are local or shipped if customers are farther away.
Benefits
- Increased visibility of the farm
- More information on the products can be offered
- Ability to broadcast the message to thousands of people
- Location of the farm is of little consequence as long as there is Internet access and shipping is convenient
- Streamlined business transactions
Challenges
- Intimidation of new and evolving technology
- Good understanding of computers and on-line world is necessary
- Technology and infrastructure cost
- Increased personnel and administrative costs
- Establishing customer trust
- Product that can be shipped for a price people will pay
Required resources
- Computer hardware
- Computer software
- Fees to connect to server, to register domain name, and to host site
- Knowledgeable personnel
- Time to learn new technology
- Shipping arrangement with UPS, or other delivery service
- Payment services for site
Statistics
- Food items as a category of internet sales are expected to increase by 30% in the next 5 years
- Online sales of all categories are expected to reach $64 billion in 2004 and grow to $117 billion by 2008
- Buyers in 2004 will spend $585 per year online; buyers in 2008 are expected to spend $780 per year
- Many of these buyers will be first time buyers, just becoming familiar enough with the online environment to feel comfortable purchasing
- Many farmers marketing on the Internet cite 24-hour visibility and ability to make contacts
all over the world as the greatest advantages of Internet marketing
Tips
- Many students in high school or college will do website design for a reasonable cost
- The website should load quickly
- Good product information is important to the customers
- Customer service should be responsive and assure the customer of the security of their personal information
- Customers are especially interested in food items not available locally
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