E-commerce involves business transactions carried out electronically between a company and other companies (B2B), companies and consumers (B2C), and the public sector and consumers (Stair & Reynolds, 2001). It is “the buying and selling of information, products and services via computer networks” (Bloch, et al.., 1996). This definition includes the support for any kind of business transactions over a digital infrastructure; and is consistent with Henderson (2001) who views e-commerce as the purchase of goods and services over a computer-based network. It is very clear that Internet reduces transaction costs for business firms, and provides consumers with more choices, more control over purchasing decisions, and lower prices, in some cases.
By automating purchasing functions, companies can eliminate mistakes and costs associated with data entry of paper invoices (Henderson, 2001). Further, the availability of information through automated systems also improves product flows, forecasting for product demand and input supply and overall business management. As a result of the growth in Internet user population, thousands of businesses have moved to Internet marketing.
It is believed that e-commerce is the fastest growing online activity, and is responsible for driving overall adoption of the Internet, (Aldridge, et al. 1999).
The first retailing e-commerce started in the USA where ordered was completed for a large pizza from pizza Hut. In 1994, a USA retailer from Netmarket sold a sting CD online in the USA. The USA e-commerce quickly grew from this stage and in 1997, Dell became the first company to have a sale record of $1 million online. More than 20% of USA have broadband internet connection in their homes in 2003, given an access to more online shopping.
In the same year, amazon reported 28% sales increase. An American based giants Amazon and eBay are known among the first e-commerce platforms. Amazon created affiliate marketing and allow other websites to have commissions. Today many sectors in the United State of America including agriculture are involved in e-commerce. However, China is recognized today as the world giant in e-commerce business.
In 1996 – 2000, Chinese innovators believe in changing traditional model of business to e-commerce is an opportunity for business expansion and profit maximization. Statistics data shows that 5.2% of current e-commerce were established at this time (Yue Hongfei; 2017). In January 1996, the first B2B e-commerce business of China was established in Nanjing Focus Technology Development Company in the Southeast University. This development followed with the establishment of China’s first e-commerce website in 1999. The 8848 websites, the earliest domestic B2B website and predecessor of Alibaba. In the same year Dangdang.com started providing the first online book store service. E-commerce in China has been regarded as an important driving force of Chinese economy, and an important starting point for the economic restructuring and development. Almost every sector of China’s economy is effectively utilizing the e-commerce opportunity to promote their businesses. The agriculture sector of China is no exception. Today in China, you can place order for any agricultural product online and receive it within specific period of time. This has immensely contributed to China’s economy and bring more convenience to Chinese people.
However, one of the richest continents on earth with huge deposit of natural resources, Africa is yet to actualize this dream to its fullest. In Africa, e-commerce has not effectively penetrated in to the market especially in the agricultural sector. Africa is blessed with fertile soil and vast land for agricultural production. Africa remain the worst continent on earth where poverty and hunger increases day by day. The number of Kwashiorkor children, marasmus, malnourished Africans in the continent increases gradually. The land of Africa is capable of producing high quality and abundant yields, thriving crops, healthy animals for food, provide better and quality education, good living home facilities, financial security and generally a better life for all its citizens. However, the continent remains one of the continents in the world that has untapped its potentials through investment into agriculture. The farmers are faced with numerous challenges to untapped the Africa soil benefits. In most countries of Africa, either smallholders or subsistence farmers are with the farming process who cannot produce to feed the growing population. They cultivate and rear animals to feed themselves, their families, and only a little for sales. This is attributed mainly to lack of ability to develop potential market.
Sierra Leone is one of the countries in Africa that shared the above challenged. Sierra Leone has vast farm land for cultivation as it is well known of rice exporter during the colonial era. However, Sierra Leone has lost this glory for decades. Farmers in Sierra Leone still use rudimental tools like hoe, cutlass, grubber, to cultivate land for farm productions. Majority of farmers in Sierra Leone live in rural areas therefore, access to information is crucial. The farmers cannot access the market information because of lack of market signal in their areas. They lack the resources to cultivate large portion of farm land. Similarly, they cannot afford scientific hybrids seeds for better yield production. Also, the degradation required auxiliary of the soil nutrients using artificial fertilizers. With the agricultural e-commerce platform, farmers can increase sales which will push them to increase production.
Access to market is one of the most crucial tasks for the farmers in Sierra Leone. Majority of the farmers lack access to potential market. It is because of the current existing infrastructures. Most farmers in the rural areas lack the finance to purchase delivery vehicles. With the implementation of e-commerce platform, the logistic companies will go to the rural areas where farmers are cut-off from the rest of the country. Because of the lack of storage facility in the rural areas, the perishable products easily got damage leading to huge economic lost to the farmers. With the implementation of e-commerce in agriculture collaborative market place is created. The logistic companies have infrastructures, they will facilitate the delivery of products to customers which consequently increases production level.
The sharing of information is an idea to promote interaction among farmers, warehouse, retailers, logistic companies, and customers. The farmers can easily inform the logistic company to collect products and deliver to customers. Similarly, the warehouse that has the necessary requirement to store perishable goods can keep the farmers’ products until receiving an outbound order from the farmer within the e-commerce platform. The agricultural e-commerce platform will increase transparency among the product marketers and customers. The platform will help to eliminate the middlemen leading to price reduction. With the implementation of the e-commerce platform, farmers can reduce transaction cost as compare to traditional market. When farmers move from traditional market to e-commerce, the scope of customer increases very rapidly because the market is available to wider people in the world. Farmers can sell significant number of products on daily bases. The traditional market opens for specific period of time but e-commerce platform is available and accessible 24/7 a day. This help customers to have an ample time to search for product of their choice without any hindrance.
It will lead to increase in production to meet customers’ expectations and satisfactions. When the farmers realized increase in customers demand, he will be compelled to increase production in other to meet the growing demand. The returns of higher demand by customers create economic freedom for farmers to increase productions. The independent e-commerce platform will corps the current challenges by increase in food production and access to potential market. The platform serves as a sale hub of agricultural products for the sub region. This enforce the inter-boarder trade between the sub region and realize the benefits the platform offered.
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