Abstract
The development of Internet as a widespread communication medium among consumers has created new business opportunities, by both reducing transaction costs and widening potential markets. The improvement of market transparency, which results from consumers' being exposed to a larger offer and being able to make comparisons between them, may affect the trading choices of firms facing market globalisation. The aim of the analysis conducted in this study is to investigate the present state of the e-commerce implementation among firms operating in a restricted sector (organic fruits and other related products) of the organic food industry. The analysis is carried out by sending a short questionnaire to all the firms listed in a published directory. Other information have been directly collected on the Web from the existing Web sites of the firms selected for the study. The survey will be the basis for further analysis aimed at studying the potential of the e-commerce tool in order to develop the sector and the related firms. The focus will be put on implementation strategies, on trade and logistic facilities, and on marketing tools to be adopted in Web sites design and e-commerce projects implementation.
Long considered to be a more expensive option, the organic sector has since taken off with its attractive prices and its variety of choices. In the UK, many online shops are now playing the organic card.
Last year, the Soil Association’s 2016 Organic Market Report found that sales of organic products rose by 4.9% in 2015, reaching £1.95 billion in the UK. Shoppers spent an extra £1.73 million a week on organic products. The most popular products sold were jam, tea, and oils,
but fruit and vegetable sales also increased, as did sales of organic cotton clothes and beauty products.
According to the Financial Times, the organic market in the US grew by 11.4% in 2015, in France 10% and in Italy 6%. China has overtaken the UK as the world’s fourth-biggest organic market with retail sales.
Organic products and e-commerce go hand in hand. Shopping online has a lot of benefits and is more environmentally friendly as CO2 emissions are lower. In the UK, sales of organic products online rose by 9.1%. Getting into the organic e-commerce market can therefore be a lucrative opportunity.
In the food sector, sales frequency is higher than average and Internet users often do their shopping in their free time. You therefore need to offer them the best shopping experience possible. To do this, make sure you include all the vital information about your products – such as consumer opinions, directions for use, ingredients, labels, and the nature of the packaging (are they recyclable? Are they made with recycled materials?). Also, you can put filters in place to facilitate your customer’s search. You could offer several categories, such as vegan, fair-trade, locally made, gluten-free, sodium-free, British produce, etc.