Development of an e-commerce platform (D2C) for small and medium-sized farmers and returned migrants agri-entrepreneurs

Feasibility study and roadmap recommendations

Description

"Development of an e-commerce platform (D2C) for small and medium-sized farmers and returned migrants agri-entrepreneurs” is a feasibility study examining the potential of an e-commerce platform tailored to small and medium-sized farmers and returned migrant agri-entrepreneurs in the Republic of Moldova. The study provides an overview of online commerce among agricultural producers in the country and specifies the steps to be taken for the future development of the platform. It was prepared based on data garnered from national and international reports and online resources, as well as primary information obtained from 29 in-depth interviews, complemented by four group discussions involving over 30 producers, financial institutions, online platform administrators, information technology specialists, state institution representatives and other stakeholders. The study explores two possible future scenarios for the e-commerce platform: Scenario 1) Recreating the platform from scratch; and Scenario 2) Developing the existing platform (online store/marketplace). The report draws upon the findings of a multicriteria study to describe a series of interventions leading to the creation of a functional, long lasting and sustainable tool. Possible technical functionalities are proposed and prioritized in three categories as 1) absolutely necessary; 2) recommended; and 3) prospective.

Technology

  • E-commerce/online marketplace
  • E-payment
  • Social media
  • Website

The feasibility study provides details of a number of existing technologies already in use in the Republic of Moldova, such as Totul.online (https://www.maib.md/ro/promotii-maib/totul-online-solutia-pentru-cresterea-vanzarilor-tale-in-online) and IFood Delivery (https://fusion.works/portfolio/ifood). Rather than delving into the functionalities of the platforms, the study discusses the opportunity to develop an e-commerce platform (most likely a website/online platform) either from scratch (Scenario 1) or based on existing solutions (Scenario 2). A series of prerequisites are identified for the realization of the minimum viable e-commerce platform, including: 1) supply and demand information related to existing markets; 2) marketing elements to increase its popularity, likely involving social media; 3) financial elements/indicators to increase stakeholder motivation; 4) logistical infrastructures/workflows related to food safety requirements; 5) a digital document repository of taxation and legal information; 6) guidance on how to use the platform; and, 7) easy-to-operate secure e-payment systems. On the technological side, the opportunity to develop a mobile app is not mentioned while the need for a dedicated team working on continuous development is mentioned.

Target

  • Smallholder farmers
  • Medium size farms

The study focuses on the needs of small and medium-sized farmers, and the main users of the solution can include the private sector (e.g. tech providers), who may choose to invest in such a solution after considering the study outcomes, as well as public sector actors, who could put their support behind regulatory and investment initiatives aimed at enabling the development of the e-commerce platform. Aside from the public and private sectors, non-profit organizations who are active in this field could leverage the insights from this study to strengthen local food markets through the provision of a digital solution that effectively addresses the specific needs of the beneficiaries.

Business model

The study presents two development scenarios related to the implementation of an e-commerce e-commerce tailored to the needs of smallholder farmers. In Scenario 1 (S1), the recommendation is to create a new e-commerce e-commerce from scratch, designed specifically for small- and medium-sized farmers, while Scenario 2 (S2) proposes the development of an e-commerce e-commerce based on an existing e-commerce, such as an online store or marketplace, adapted to meet the unique challenges faced by smallholder farmers. Both scenarios require critical interventions for the creation of a minimum functional system and a complete functional system, as well as interventions to ensure sustainable development by increasing the number of users and beneficiaries. Specifically, interventions are required in the logistics, management, information technologies, marketing, legislative and education domains. The overall objective is to establish a viable and sustainable e-commerce solution that effectively serves the specific needs of smallholder farmers.

Impact

This feasibility study paves the way for the development of an effective and long-lasting e-commerce platform for Moldova, identifying opportunities, optimal scenarios and the necessary interventions required for the launch of an e-commerce platform that connects producers and consumers. The resource envisages the creation of an ecosystem that allows the free entry and exit of any operator who can bring benefit to their areas of competence. In short, the resource aims to increase the economy of a region that is at risk of falling behind in the agricultural sector if it fails to address systemic problems and to encourage innovations targeting the formation of a competitive and efficient environment in which the risks of bottlenecks are minimized.

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Source: FAO AgriTech Observatory

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