Farm Commerce? 10 Key Questions to Ask Before Deploying for your Farm
Before diving into these questions, be mindful that buyers’ expectations of shopping from your Farm have been built upon experiences of buying consumer-packaged-goods (CPG) from global brands.
Billion-dollar retailers have pushed every product online – books, clothing, computers, appliances, toiletries, and every other form of shelf-stable product that could be shipped by a third-party carrier.
Most solutions that offer Farm commerce capabilities are NOT designed for selling perishable goods online and in-person. Yet, we live in a culture where every consumer expects to click-a-button for a product to arrive on their doorstep - including Food purchased directly from a Farmer.
There is no perfect solution for selling Farm products online or in-person. Each vendor in the market has its strengths and its weaknesses. You should choose what is best for your Farm based on your customers, products, and fulfillment preferences.
Set forth below are the 10 Key Questions to ask before deploying Farm Commerce for your Farm. For a comprehensive list of questions to ask when researching, please use this printable PDF - Farmer’s Worksheet to choose your Farm Commerce Solution.
1. Does the Solution Support Online & In-Person Point of Sale (POS)?
Many Farmers sell in-person at farmer’s markets, from the back of their truck, at events, or at on-Farm kiosks and stores. However, as 63% of local buyers purchase groceries online weekly, it is essential that Farms have a solution that captures every available sales opportunity – online and in-person. When selecting a solution for your Farm, it’s important to be aware of Point-of-Sale (POS) capabilities for your business. Ask yourself:
Can I accept orders online (eCommerce) and in-person (POS)?
Can I manage all of my money in one merchant account?
Does my inventory update in real-time, regardless if products are purchased online or in-person?
Can I sell by fixed or variable weight pricing ($ per lb) both online and in-person ?
Having a solution where Farmers can manage every aspect of the business through a single account regardless of where transactions occur will be key to increasing sales and saving time and money. Point-of-Sale is essential for any Farm business that sells direct-to-market through traditional in-person channels.
Read: Announcing the Barn2Door Point of Sale (POS)
Listen: Announcing! Barn2Door POS
2. Does the Solution Support Multiple Price Lists?
Most Farmers sell their products directly to: (a) retail buyer (direct-to-consumer), (b) wholesale buyer (grocers, chefs, and distributors), and/or (c) private buying groups (CSAs, Box Clubs, Herd Shares, friends & family). The goal is to offer Farmers flexibility when it comes to pricing, inventory, and fulfillment options. To accommodate your different customer-types, ask yourself:
Can I manage multiple price lists for my customer base – online and in-person?
Can I offer Retail buyers the ability to shop as a “guest”? (if not, you’re losing 2/3 of sales)
Can I offer separate, gated access to Wholesale buyers?
Can I control access to a Private store? (e.g., sell raw milk)
Can I offer different forms of fulfillment based on the type of buyer? (e.g., pickups for consumer, delivery for wholesale)
On average, Farmers spend up to 7-9 interactions with a customer before a single order is complete. A solution that can streamline the ordering process for buyers while simultaneously simplifying order management for Farmers is the goal. Time is always in short supply for Farmers.
Depending on your business needs and your answers to the above questions, it’s essential that your Farm finds an all-in-one solution to cater to different aspects of the business. The ability to serve multiple buyer-types, manage different customer groups , and offer an easy, purchasing experience is critical to growing and managing your sales.
Read: A Farmer's Checklist to Build a Direct Business
Listen: How These First-Generation Farmers Found Success
3. Does the Solution Support Multiple Fulfillment Options?
Farmers spend a lot of time coordinating fulfillment with their customers. Your Farm commerce solution should support multiple fulfillment options based on your preferences and your schedule.
Farmers utilize a wide variety of fulfillment, including: on-farm pick-up, meet-up locations (drop sites, “grab-and-go”), direct home delivery, shipping, and “to be arranged” (after a harvest date is confirmed). When selecting a commerce solution for your Farm, consider the following:
Can I configure an unlimited number of pick-up & delivery locations?
Can I set-up local delivery zones by zip code and customer type (retail v. wholesale)?
Can I ship by weight or price that is limited to a confined region (e.g. 2-day shipping)?
Can I “arrange” a pickup date online if my harvest or kill date is unknown?
Can I access a pick-and-pack list that is automatically updated for every option?
It’s also important to consider the buyer’s ability to understand and navigate your fulfillment options online. Remember, consumer expectations drive ecommerce outcomes for your Farm.
Are the delivery options clear and self-explanatory (point-and-click)?
Do they get automated receipts and reminders?
Can I offer certain products for delivery, but others for pick-up only (e.g., half a cow)?
Can I sell add-on products with POS (at pick-ups or during deliveries)?
Does the solution offer support to your buyers, too?
When Farmers are able to leverage a Farm ecommerce solution that satisfies buyers’ expectations of convenience and caters to their needs, they drive more consistent revenue. Note, 76% of Americans admitted that having multiple fulfillment options to choose from influences their purchase decision.
Read: Delivery 101: Make it Profitable for your Farm
Watch: 3 Farm Success Stories with Delivery
Listen: How to Save Hours on Delivery Day with Terra Firma Farm Creamery
4. Does the Solution Support Subscriptions?
Subscriptions are the new normal on commerce platforms (e.g., music, movies, clothing, toiletries). Any product that is consumed on a regular, ongoing basis is now sold as a Subscription.
It’s no surprise that Food Subscriptions are on the rise, since people eat everyday and expect convenience! In fact, in the last 12 months, more than 40% of all transactions through the Barn2Door platform are Subscriptions. The ability to offer Subscriptions to your products is an expectation of your buyers, and offers your Farm consistent, recurring cash flow. As you look at alternatives, ask yourself:
Can I offer seasonal, rolling and/or ongoing subscriptions?
Can I offer buyers the ability to pay up-front or pay-as-you-go subscriptions?
Can I allow buyers to join a subscription, even after the term has started?
Can buyers skip or cancel their subscription that’s convenient for them and me?
Do customers receive a reminder for each delivery?
While Barn2Door offers Subscription capabilities for “free” with all Accounts, most alternative solutions in the market charge an ongoing premium for Subscription services (in addition to underlying Software fees).
Is there a supplemental transaction percentage (%) charge for each product subscription?
Is there a supplemental transaction fee ($) charge for each product subscription?
Americans have, on average, 9 Subscriptions to products they use and love on a regular basis. When Farmers offer Subscriptions to their products, they generate up to 80% recurring monthly revenue for their business.
The convenience of Subscriptions is changing the way people are ordering Food, so your ecommerce solution needs to support the unique nuances of Farm-based Subscriptions.
Read: 5 Things Farmers Are Doing To Lock In Recurring Sales
Watch: 3 Farm Success Stories with Subscriptions
Listen: Announcing Ongoing Subscriptions on Barn2Door
5. Does the Solution Support Variable Weights?
Charging for products by weight is the lifeblood for many Farmers. The Solution you choose to run your Farm business should be designed to help you maximize your revenues, and make it easy to reconcile the final price for your variable weighted products, with the click-of-a-button. If you sell products by weight, ask these questions of your solution:
Can I accept a deposit then auto-reconcile a final price (when weighed)?
Are payment details stored securely, or must I chase down the final payment?
Can I take a card deposit online, then invoice customers for the final charge?
Can my buyers purchase credits, then drawdown as items are ordered?
Does my POS have the ability to sell by fixed price and/or variable weight ($ / lb)?
It’s essential that your solution caters to Farm business needs. Most commerce solutions fail to accommodate the specific needs of Farmers and/or Food.
Read: How to Package Subscriptions and Bundle Boxes
Watch: Pricing Your Products for Profit and Ease
Listen: Impacting Packaging and Choice Subscriptions
6. Does the Solution Integrate with Your Existing Applications?
Farmers have little free time, and none to be wasted on tedious “data-entry” tasks. Your Farm commerce solution should make life easier with direct integrations to your website, social handles, newsletters, merchant account, accounting solution, and tax system (as applicable for your Farm).
Too often, Farmers are trying to move information manually between different programs, which is time consuming and error prone. If you are using one or more systems to manage your Farm business, ask yourself:
Am I trying to “sync” information in different places (buyers, orders, inventory)?
Am I wasting time moving or re-entering information into multiple applications?
Am I managing orders, money and customers in more than one place (online v. in-person buyers)?
Am I paying additional fees for integrations to work with my Farm commerce solution?
Am I spending unnecessary time trying to resolve support questions?
Leveraging business tools that automatically integrate with your eCommerce solution can help your Farm increase sales and save time. Here’s what we’ve found with Farmers leveraging different integrations to help their business run smoothly:
Barn2Door + Mailchimp: On average, Farmer’s increase their average order size by 35% when implementing automated “Customer Journey” campaigns..
Barn2Door + Routific: Farmers save 2+ hours every week AND save 30% on fuel costs when delivering direct.
Barn2Door + Intuit QuickBooks: Farmers automatically sync transaction data for ease of tracking sales, expenses, and fees.
Barn2Door + Avalara: Farmers gain peace of mind knowing taxes are accurate and automatically up-to-date.
Read: 5 Steps to Getting the Most Out of the Barn2Door + Mailchimp Integration
Read: Death & Taxes. Two Things your Farm Can’t Avoid
Watch: Save 2+ Hours Every Day with the Barn2Door + Routific Integration
Listen: How to Simplify your Farms Accounting
7. Can you Cut Processing Rates to 0%?
There is no such thing as “free” when it comes to your time (and headaches troubleshooting). Pricing for most commerce solutions are paid based on a Software subscription fee. And, processing rates often vary modestly with a transaction fee (per order). However, when evaluating your options be sure to read the fine print, by asking:
Can I sign-up for a monthly or annual commerce subscription?
Can I cancel my commerce subscription anytime?
Am I getting a truly “flat” processing rate, or are reward cards more expensive?
Are the advertised card rates based on “card present” versus “not present” online?
Can I offer buyers the “option” to cover credit card processing fees (& more) with tips?
Am I indemnified and insured in the event of a privacy or security breach?
Does my POS offer a tipping feature to earn more upside (and cover processing fees)?
If your Farm can lower or eliminate credit card processing fees altogether by offering buyers the ability to cover your fees with a tip, then you’ll increase profit margins for your business. Barn2Door data shows that 1 in 4 Farmers who utilize tipping pay nothing for processing credit cards (which have been offset by tips)! And, 3 out of 4 Farmers only pay about 1.5% in processing fees.
Read: How Buyer Tips Lead to Lower Processing Fees
Read: Read how to Cut Your Credit Card Costs with “Buyer Covers Fees”
8. Does the Solution Mark-Up your Prices, Take a Percent of your Sales, or Charge Buyers a Service Fee?
Pay attention here. Many Commerce solutions may appear inexpensive upfront, but often layer other costs and fees. Food marketplaces may do the “marketing” for your Farm, but they’ll own the customer relationships, reduce your product to a commodity and mark-up your Farm products (up to 25%).
Other solutions will enable you to sell direct, but still take a percentage of your gross sales (up to 15%) to set off their costs. And, some solutions will attempt to recoup costs with a “service fee” charged to the buyer at checkout (up to 10%). Either way, the impacts can make a significant impact on your Farm’s profit margin and net income.
As you are researching solutions, ask:
Am I obligated to mark-up my products (or will the solution do it without my consent)?
Am I obligated to pay a percentage (%) of gross sales to the solution provider?
Are my buyers going to be charged a “service fee” at checkout?
Am I giving up a significant portion of my profits (net income)?
Farmers work too hard to allow third-parties to take a significant percentage of sales or cut into your profit margins. Find a solution that is Farmer-first and works to help your Farm grow and manage your sales, rather than taking a cut off your bottom line.
Read: 5 Favorite Barn2Door Innovations
9. What Level of Support is Included with Your Solution?
Often a solution may seem like a good product fit, but at second glance live support is not included. Most Farm commerce solutions only offer support via email or a self-help knowledge base, which can eat up your time and cause frustration for you (and your buyers).
Chat and phone support is often at a premium (from $65 per incident to a flat $1,000 per month). And, rarely does support include Farmers’ buyers (the people actually shopping from you online). As you make your Farm commerce solution decision, consider the following:
Will I have assistance to set-up my solution (an Onboarding Manager)?
Do I receive assistance to configure my store on the web, social, email, and newsletters?
Will I have access to guidance on a recurring basis (an Account Manager)?
Do I have access to live Chat support for questions?
Do my customers have access to live Chat support?
Can I speak with successful Farmers who have built thriving direct-to-market businesses?
The most successful companies in the world have entire teams solely dedicated to supporting their customers, business partners, etc. To scale operations and create a thriving Farm business, processes must be in place to support you and your customers’ needs. Finding a solution that recognizes this importance while understanding the unique nuances of the farming industry is essential.
Read: Connect - A New Way to Learn Farming Best Practices
Read: Monthly Marketing Toolkit for your Farm Business
Listen: What Barn2Door Academy Pass Can Unlock for Your Farm Business
10. Who Owns the Customer Relationship?
You are shopping for commerce solutions for your Farm. Make sure to understand whose branding is front-and-center, who owns the customer information, and who owns all your Farm’s order history (the “data”). When browsing ecommerce solutions, ask these key questions:
Am I compelled to introduce my customers to another “brand” to buy from my Farm?
Am I compelled to redirect my customers elsewhere for customers to “create an account”?
Am I competing with other Farms in a pool of buyers (a “marketplace”)?
Are emails sent from my Farm domain?
Are receipts and invoices branded for my Farm?
Do I “own” and can I access all of my customers’ information and order history anytime – regardless if they placed an order online or in-person?
Am I the one fostering relationships with the customer?
Are customers familiar with MY Farm brand?
Farmers who “own their customers” (aka possessing customer details and contact information of buyers) create long-term success for their Farm business. When a commerce solution allows your Farm to lead the customer relationship and own the process of how customers engage with your brand, you’ll build more loyalty through every interaction and fuel more consistent sales in the future.
Read: The Importance of Owning your Customer Base for Long-Term Success
Listen: How to Build Relationships with your Customers
With buyers increasingly “online”, it’s tempting to opt for an ecommerce solution based solely on price point. However, the user experience, product capabilities, and support resources are critical for your Farm to build a successful ecommerce business.
Hopefully, these 10 Key Questions have offered insights to frame your research. We aim to be objective with the information we share based on the best practices we’ve learned serving 1000’s of Farm businesses across all 50 states.
To assist you in your research, we also assembled a printable PDF - Farmer’s Worksheet to choose your Farm Commerce Solution - that includes a comprehensive list of questions.
At Barn2Door, we won’t pretend to be all things to all people (we’re always improving to better serve our customers). But, you can count on us being transparent with our pricing and business ethics. Read our terms and conditions - we employ the “Golden Rule” in all that we do.
Barn2Door provides an all-in-one solution for Farmers to grow and manage their business. If you’re curious to learn why successful Farms run on Barn2Door, watch this 5-minute video.