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Research and Analysis on Five Major Agricultural Products E-commerce Models

1. The concept of agricultural product e-commerce model

my country’s traditional agricultural product circulation and sales process (from agricultural product output to consumption) usually involves agricultural product brokers, wholesalers, retail terminals, etc. With multiple layers of intermediate links, it has the problems of poor information circulation and high circulation costs. The emergence of the Internet has just improved its shortcomings and transformed the circulation channels of agricultural products into a network, thus deriving 5 different agricultural product e-commerce Modes: C2B/C2F mode, O2O mode, B2B mode, B2C mode (platform B2C and vertical B2C), F2C mode.

2. Analysis of the five major agricultural product e-commerce models

1. C2B/C2F model

Definition: C2B/C2F model is the consumer customization model. Farmers produce agricultural products according to members' order needs, and then deliver the products from their own farms to members through home delivery. The operation process of this model is divided into four steps: the first step is for farmers to form large-scale planting and breeding; the second step is for farmers to publish product supply information through the online platform to recruit members; the third step is for members to recruit members through online membership The system reserves the products needed in the future in advance; finally, after the products are produced, farmers deliver them to members according to the predetermined needs.

Profit source: collecting membership fees, that is, members’ annual, quarterly or monthly card consumption

Representative enterprises: Dolly Farm, Zhongliang.com

Model advantages : Customized production in advance, low operating risks

Model disadvantages: Limited market development space due to site and non-standardized production

2. B2C model

Definition: B2C model, that is, the business-to-consumer model, which is the behavior of brokers, wholesalers, and retailers selling agricultural products to consumers through online platforms or professional vertical e-commerce companies directly purchasing from farmers and then selling them to consumers. . This type of model is the current mainstream model, and it can be subdivided into two business forms: one is the platform-based B2C model, such as Tmall, JD.com, and Taobao; the other is the vertical B2C model (that is, focusing on sales) e-commerce model of agricultural products), such as Womai.com, SF Express, Benbensheng, etc.

Profit sources: product sales profits, platform entry fees, product profit withdrawals, etc.

Representative enterprise : Tmall - Meow Fresh, Jingdong Daojia, Womai.com, SF Express, Benlife

Model advantages: Intermediary role, no need to bear the risk of selling goods

Model disadvantages: It has high requirements on the platform’s traffic and supply chain

3. B2B model

Definition: B2B model is a business-to-business model. It is a centralized business-to-business model with farmers or first-level wholesale markets. The act of purchasing agricultural products and then distributing them to small and medium-sized agricultural product dealers. This type of model mainly provides convenience for small and medium-sized agricultural product wholesalers or retailers and saves their procurement and transportation costs.

Profit sources: profit from product purchase and wholesale price difference, service fees

Representative enterprises: Yimutian, Huinong.com, Green Valley.com

Model advantages: None required Bear the risk of stocking up, linking upstream and downstream, and have a lot of room for development

Model disadvantages: high requirements on the platform’s traffic, supply chain, and information services

4. F2C model

Definition: F2C model, also called farm direct supply model, is the act of selling agricultural products directly to consumers through online platforms.

Source of profit: profit from product sales

Representative enterprise: Tuotuo Gongshe

Model advantage: Can quickly build consumer trust

Disadvantages of the model: Due to the influence of site and non-standardized production, the market space is limited

5. O2O model

Definition: O2O model, that is, the integration of online and offline model, that is, a model in which consumers pay online and pick up items offline.

Source of profit: profit from product sales

Representative enterprise: Cloud Kitchen E-commerce

Model advantages: community-based model, convenient and fast logistics and distribution

Disadvantages of the model: the cost of local promotion is high

3. Related thinking and exploration

The above five different agricultural product e-commerce models are suitable for different agricultural products, and they each have their own advantages. Disadvantages, there is no absolute advantage or disadvantage. According to relevant data, there are currently more than 30,000 agricultural-related e-commerce platforms in China, including 3,000 e-commerce platforms for agricultural products, but they are basically at a loss. This situation occurs, on the one hand, because agricultural product e-commerce is still in the initial stage of development, and on the other hand, it is determined by the special attributes of agricultural products themselves. The natural attributes of agricultural products make it very demanding in terms of transportation and product quality. Therefore, there are five main driving forces for the development of agricultural product e-commerce: supply chain, marketing, products, channels, and services. Each driving force can constitute a The core competitiveness of agricultural product e-commerce companies.

Thus, different agricultural product e-commerce models can choose different driving forces as the core elements of their development, but the development of agricultural product e-commerce is a long industrial chain: from the original product (quality control) → Standardized commodities (packaging) → transportation and distribution (supply chain) → services, if any one of these links is missing, agricultural product e-commerce cannot be developed well. Therefore, clarifying the business model of agricultural product e-commerce is only the beginning, and the core is to focus on these four links. Make a good layout. Everything is just the beginning, and there is a long way to go for the development of agricultural product e-commerce enterprises.