Should You Be Selling Plants And Products Online?

Suzanne McKee
Suzanne McKee

At the heart of every business lie transactions. How do you purchase the supplies you need? How do you sell your final product? None of us wants to simplify our work this much but if you can’t get what you need to operate economically and you can’t sell your goods or services competitively, then the other things you do quickly become irrelevant.

The commerce models where this buying and selling happen have been transforming and evolving throughout time, oftentimes hand in hand with new advances in technology and sometimes driven by other factors. For the green industry, let’s consider brick and mortar, eCommerce and direct selling our key ways of exchanging our goods throughout the supply chain.

  • Brick and Mortar: Companies that have a physical presence and offer face-to-face customer experiences.
  • eCommerce: Trading in products or services conducted via the Internet.
  • Direct Selling: The marketing and selling of products directly to consumers away from a fixed retail location. For instance, regional sales reps.

There is a valuable place for each of these methods in every industry, but trends are leaning toward the biggest growth opportunities being in eCommerce transactions. According to Forrester, B2B eCommerce sales were on track to achieve $559 billion in sales in the U.S. by the end of 2013 (they have not reported yet if these estimates were reached). That is more than twice the size of current online consumer sales (B2C eCommerce). The same report found that more than one quarter of respondents were getting 50 percent of their revenue from an online channel.

Why Do People Buy Online?

According to a report released by comScore, Inc. (UPS Pulse of the Online Shopper: A Customer Experience Study), consumers want more choices, more control, convenient returns and the best deals when they shop online. Interestingly though, lowest prices were not always the main motivation for online shopping. It is more a lifestyle, or when done for your work, a way of doing business that appeals to a lot of people in the digital age.

In the green industry, we largely operate under a broker/wholesale model of doing business throughout the supply chain starting with the breeder/producers and culminating at the retail level. To date, our industry has lagged behind others in the eCommerce market at every step of distribution. Regardless of where you fall within the supply chain — selling to other business or to the end consumer — eCommerce is growing at such a pace that you can’t ignore it. If your customers aren’t already asking for it, it is safe to say that as the next generation moves in to decision making roles, they will demand it.

What To Consider When Thinking About eCommerce

  • Who is your target market? Do they already do quite a bit of business online? Do they do most of their work at their desks or do they require mobile solutions?
  • Can your business operate online without losing your personal touch, relationships with your customer and customer loyalty?
  • Are you willing to make the required investments in both personnel and technology required to have a successful online eCommerce site?

Pros And Cons Of Selling Via eCommerce (From A Business Perspective)

ProsCons
Overhead is not exponential with salesInitial investment can be very high
Growth opportunity through online channels are proving to be bigger than traditional onesChannel conflict (between direct sales and online channels) could hinder growth if not handled well
Can oftentimes help to streamline existing logistical issuesSophisticated systems required to handle complexities of working with live goods

How Consumers Could Benefit From Your eCommerce Platform

  • More choice and flexibility in how they purchase from you
  • Opportunity to review your products more leisurely and on their own schedules, giving them the information to make better informed decisions
  • Compare pricing more easily giving them confidence in their purchases

What Are Other Industries Working On?

A closely related industry (in terms of the supply chain set up and working with live goods) that we can learn from is the food and beverage industry. Grocery chains are making big strides in harnessing mobile technology to promote products, increasing product awareness and effectively using that data to better manage ordering and inventory levels at the manufacturer and retail levels.

Take, for instance, MyWebGrocer (a service I have not yet used, nor am I endorsing), which helps retailers provide eCommerce platforms to their customers. ECommerce grocery shopping has grown up to a service where you can shop from anywhere, rely on a trained personal shopper to select your products and either pick up your order or have it delivered right to your door.

To me, this sounds like an amazing customer experience, one that might even connect me more to my current grocer than I am now. Take it beyond the customer experience, though, and think of the data grocery stores now have on this segment of their customers. Personalized marketing and a completely new level of engagement with their customers just became possible.

Let’s look back at the world of flowers and why we should care what grocery chains are doing.
Imagine an eCommerce site that allows consumers to order the plants they need directly from their iPads as they walk around their garden, visualizing exactly what they want. The new generation of consumers, contemplating their garden space, could actually create a virtual garden with their iPads using the inventory of the retailer, create an order, get confirmation, pick it up or have it delivered.

From a business perspective, this offers a better way to connect with the new generation of shoppers who are very connected to mobile technologies in a way that is more effective than selling in brick-and-mortar stores. As a retailer, you also just received some very valuable data that you can use to enhance your marketing.

For Instance:

  • Targeted content marketing on the plants they purchased
  • Personalized offers that bring them back for more
  • Timely tips for summer care – fertilizers, chemicals, mulch etc.
  • Promotions for second planting for seasonal gardens – switch to fall and winter color – spring flowering bulbs
  • Contest for best garden – linking their customers to each other

This same model holds true for the B2B aspects of our supply chain. Professional greenhouse growers can better connect with their retail customers with online ordering and resources that share data on trends, allowing for more timely promotions and inventory specials. Breeder/producers can connect in real time with their customers and even extend the reach of their marketing to the retailers and consumers in a more effective manner. Overall, it makes our industry more streamlined and more connected to our end consumer.

ECommerce is more than just online ordering. It is a way to better understand, connect and engage with our customers, on their terms, in the digital age. It can’t (and won’t) replace the value of personal relationships in both business and consumer transactions, but if done correctly, it will build on those to make the customer experience so much better.

The technology is there, the innovation is there and valuable lessons are at our fingertips if we look at and learn from other industries and their eCommerce practices.

Topics:

Leave a Reply

More From Business Management...
Costa Farms won International Grower of the Year. Representing the operation, (left to right) were Chuck Zala, Michael Vera, Menachem Ganon, Jose Costa, and Mike Rimland

May 24, 2016

AIPH Seeking Entries For Its International Grower of the Year Awards

The International Association of Horticultural Producers (AIPH) is inviting ornamental growers from all around the world to enter the AIPH International Grower of the Year Awards (IGOTY) for 2017. Last year’s big winner was Florida-based Costa Farms.

Read More
Gotham Greens Atrium Style Greenhouse Chicago

May 23, 2016

What’s Good For The Environment Is Good For Business [Opinion]

Investing in technology to become more sustainable “always goes hand in hand,” says Abe VanWingerden, co-CEO of Metrolina Greenhouses. “If it is good for the environment, it normally is good for business over the long term.” That connection was abundantly clear in the responses we received to this year’s Top 100 Growers Survey. VanWingerden points to three investments Metrolina has made as good examples of how technology can reduce an operation’s carbon footprint and pay dividends financially. Its biomass system burns locally sourced waste wood — a renewable resource; its ozone water treatment system cleans irrigation water, reducing the need for fertilizers and pesticides, and improving plant quality and precision growing; and electrostatic sprayers reduce water and chemical use, and provide more targeted chemical applications. Other Top 100 Growers have found VanWingerden’s theory to be true, as well. Costa Farms’ investment in solar energy panels on three buildings at its […]

Read More
Top 100 Drone Image Feature

May 16, 2016

Greenhouse Grower’s Top 100 Growers Talk Technology, Automation, Sustainability, And Marketing

The Top 100 Growers are already by nature some of the most technologically advanced greenhouse operations, due to their sheer size and need for efficiency. Many of the largest growers also serve big box merchandisers and home improvement chains, where prices are dictated, so producing plants at the lowest possible cost is essential to growers not only staying in business, but also profiting and expanding their operations. This year’s survey focused on the automation and technology the Top 100 Growers are investing in, and how these advancements have improved their operations, as well as how they have affected growers’ labor issues. We also asked growers about how they’re solving labor issues, where they’re recruiting new hires, and how they’re keeping their people committed. Lean management programs and sustainability certifications have become higher priorities in the past several years, due to growers’ needs to run efficiently and focus attention on sustainable […]

Read More
Latest Stories
Costa Farms won International Grower of the Year. Representing the operation, (left to right) were Chuck Zala, Michael Vera, Menachem Ganon, Jose Costa, and Mike Rimland

May 24, 2016

AIPH Seeking Entries For Its International Grower of th…

The International Association of Horticultural Producers (AIPH) is inviting ornamental growers from all around the world to enter the AIPH International Grower of the Year Awards (IGOTY) for 2017. Last year’s big winner was Florida-based Costa Farms.

Read More
Gotham Greens Atrium Style Greenhouse Chicago

May 23, 2016

What’s Good For The Environment Is Good For Business [O…

Investing in technology to become more sustainable “always goes hand in hand,” says Abe VanWingerden, co-CEO of Metrolina Greenhouses. “If it is good for the environment, it normally is good for business over the long term.” That connection was abundantly clear in the responses we received to this year’s Top 100 Growers Survey. VanWingerden points to three investments Metrolina has made as good examples of how technology can reduce an operation’s carbon footprint and pay dividends financially. Its biomass system burns locally sourced waste wood — a renewable resource; its ozone water treatment system cleans irrigation water, reducing the need for fertilizers and pesticides, and improving plant quality and precision growing; and electrostatic sprayers reduce water and chemical use, and provide more targeted chemical applications. Other Top 100 Growers have found VanWingerden’s theory to be true, as well. Costa Farms’ investment in solar energy panels on three buildings at its […]

Read More
Top 100 Drone Image Feature

May 16, 2016

Greenhouse Grower’s Top 100 Growers Talk Technolo…

The Top 100 Growers are already by nature some of the most technologically advanced greenhouse operations, due to their sheer size and need for efficiency. Many of the largest growers also serve big box merchandisers and home improvement chains, where prices are dictated, so producing plants at the lowest possible cost is essential to growers not only staying in business, but also profiting and expanding their operations. This year’s survey focused on the automation and technology the Top 100 Growers are investing in, and how these advancements have improved their operations, as well as how they have affected growers’ labor issues. We also asked growers about how they’re solving labor issues, where they’re recruiting new hires, and how they’re keeping their people committed. Lean management programs and sustainability certifications have become higher priorities in the past several years, due to growers’ needs to run efficiently and focus attention on sustainable […]

Read More
PrairieSplendor_CompactRose Syngenta Flowers March 2016

May 16, 2016

New “Generations Of Flowers” Study Tracks How And Why C…

The Society of American Florists and the American Floral Endowment have released an update and analysis of this study, which first began in 2009.

Read More

May 12, 2016

AmericanHort Is Hosting A Greenhouse Tour In New Jersey…

The Field and Covered Production Tour takes place Sept. 14-15, and features stops at Overdevest Nurseries, Centerton Nursery, and Lucas Greenhouses.

Read More
2016 Top 100 Growers With Drone

May 10, 2016

Reading The 2016 Greenhouse Grower Top 100 Ranki…

Greenhouse Grower’s Top 100 Growers survey reveals continued growth among the nation’s largest operations.

Read More
Petunia 'Supertunia Violet Star Charm' (2015 University of Georgia Field Trials)

May 10, 2016

New Southern-Centric Ornamental Production Conference T…

The 2016 Academy of Crop Production is dedicated exclusively to sharing information on advanced ornamental crop production and business management techniques for ornamental producers.

Read More
2016 Top 100 Growers List

May 10, 2016

2016 Greenhouse Grower Top 100 Growers: The Comp…

Check out the full list of Greenhouse Grower's 2016 Top 100 Growers, which includes nine newcomers and more growth in square footage at the top.

Read More
Webinar Photo from Flickr

May 7, 2016

How You Can Connect With A Broader Audience Through Web…

Webinars are time-saving and effective marketing tools that can extend your reach to a greater audience.

Read More
Janeen Wright

May 5, 2016

You Can’t Take Small Business Out Of The Big Greenhouse…

Big growers who stay true to their small-business roots don’t lose sight of the personal touch in business.

Read More

April 27, 2016

Use Your Data To Make Smarter Marketing Decisions

Learn which marketing metrics are important to your business, measure successes, and learn where changes are needed.

Read More

April 26, 2016

“Bee-Friendly” Labels Matter To Plant Consumers, Accord…

Research at Michigan State University shows ornamental plant buyers understand and respond to bee-friendly production practices.

Read More
University of Florida Online Greenhouse Training Courses

April 25, 2016

University of Florida Offering Online Training Courses …

There will be five courses offered, with the first starting on May 30. Courses are available in both English and Spanish and range from beginner level to advanced education.

Read More
HGTV_2015CAST

April 24, 2016

9 Business Predictions Smart Brands Should Pay Attentio…

Andreas von der Heydt, Director of Kindle at Amazon, recently predicted what smart businesses will do in 2016 to strengthen their brands and promote their products.

Read More
Lin Schmale 1996

April 23, 2016

SAF’s Lin Schmale Offers Lessons From An Industry…

Schmale represented the floriculture industry on Capitol Hill for more than 20 years. The advocate has recently retired, and shares some valuable insights from her career.

Read More
Scott Schaefer Aris CEO

April 22, 2016

New Aris CEO Scott Schaefer Looks Forward To Dealing Wi…

Schaefer, who has been with Aris for 15 years, grew up working at his family’s greenhouse operation in Illinois.

Read More
Krause Berry Farms Farm To Table Dinner

April 20, 2016

What The Floriculture Industry Can Learn From Farm Mark…

Although we have a lot in common with the produce industry, there is much we can learn from one another.

Read More
Janeen Wright

April 18, 2016

Three Lessons From A Master Greenhouse Vegetable Grower

Three lessons from greenhouse vegetable grower Casey Houweling that you can apply to your business.

Read More
[gravityform id="35" title="false" description="false"]