E-Commerce Disruption Pushes Ag Retailers to Focus on Distribution and Service

February 2019 -

Key Points

  • E-commerce remains a relatively small but growing segment of the overall agricultural retail marketplace.
  • Online ag retail startups are compressing margins for traditional ag retailers through increased competition and price transparency. 
  • E-commerce platforms that lack a physical footprint will struggle to fully serve farmers, especially in the tight and uncertain time windows endemic in production agriculture.
  • Traditional ag retailers are doubling down on their competitive advantages while building their online presence.
  • An omni-channel strategy will be necessary for ag retailers to survive and grow in the digital age. This strategy requires investing in technologies to allow multiple avenues for farmers to interact with an ag retailer including through an online platform.

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