The seafood industry and e-commerce
Business being done on the internet, now referred to as e-commerce,
is increasing exponentially. While a few years ago the primary product
sold via the internet was pornography (and, interestingly enough, the on-line
pornography industry is being looked at as a model for successful e-commerce
– see the NY Times e-commerce web pages linked below), today everything
from real estate purchases through automobile leasing to travel arrangements
and weekly food shopping can be done on line. And a growing amount of electronic
transactions are business to business rather than business to consumer.
What does e-commerce have to offer that shopping “in person” doesn’t?
First, and most obvious, is convenience. If you haven’t done any comparison
shopping on line, you have no idea how easy it can be to compare product
A to product B, or to compare the price of the same product from vendor
X and vendor Y. A few mouse clicks and you’ve avoided what can be hours
of shopping time. Then there’s – at least for now – lower prices. Today
e-commerce sites are more intent on building up their customer bases than
they are on making a profit on the goods or services they are selling.
it’s not too difficult to find particular products offered on the web for
less than their retail cost. And finally, the internet is a potential pipeline
into the homes or offices of the most affluent strata of society. Generally
the people with disposable income buy computers and the people with free
time use them. Depending on the products being offered, this can either
be an incentive to focus on or to ignore the internet as a sales device.
The downside is that the customer doesn’t have a chance to actually
see/hold/test the product before purchasing it and can’t take it home immediately
afterwards (but with overnight delivery readily and reasonably available,
this is becoming less of a concern with many shoppers). Also, with the
explosive growth in e-commerce there’s expected to be a corresponding growth
in various web-related scams. Finally, many people are still hesitant to
entrust personal financial information, credit card numbers, etc. to cyberspace.
So where might seafood businesses fit into all of this? From a business
to business perspective, it’s much easier to keep in touch with suppliers
and markets all over the world than it was a few short years ago. Government
and private web sites track prices and monitor supplies. Email allows suppliers
on one side of the world to reach potential customers on the other instantly,
and to do it at far less cost per contact than a phone call or fax. Web
sites can offer more information about products than any other medium,
and that information can be up-to-the-minute (a critical issue with perishable
products like fresh seafood). A site promoting a company’s product can
be accessible to buyers all over the world, and if the site is properly
designed and registered with the right search engines, many of those buyers
will access it. And most recently, fully integrated trading exchanges have
been developed on the internet for ordering, distribution management and
delivery for fresh seafood. Like many other successful internet-based businesses,
you can find what you’re looking for, purchase it and make all the necessary
arrangements to have it delivered in one stop. If it is done right, using
the internet can give a small seafood business an opportunity to compete
for domestic and international customers with the big guys.
From business to consumer it might be a little more difficult to carve
out a seafood niche. Handling costs and restricted shelf life would seem
to rule out shipping anything but the most valuable products, but a significant
market for premium fresh meats and fowl already exists, so it is possible.
Smoked seafood, not requiring as careful handling as fresh product, seems
particularly well suited to e-commerce, as do some shellfish.
While not strictly a form of e-commerce, the promotional capabilities
of the internet could also play an important role in the success of seafood
businesses. If used correctly the internet is an extremely effective tool
for getting particular messages to targeted audiences. Newsgroups, list
servers and chat rooms that focus on food, fishing, the oceans or the environment
exist by the hundreds. Each of these is frequented by anywhere from dozens
up to thousands of potential “customers” for whatever messages can be convincingly
presented to them. For example, a thread on the role that commercial fishing
has played in developing the character and the economy of coastal communities,
if it was in the right place on the web, could easily generate grass roots
support for the seafood industry. Listing events like dock tours and fleet
blessings with tourist-oriented sites could be an effective way of selling
the fishing industry to the people, and one that we should be taking more
advantage of. Just about anyone involved in acquainting members of the
public with any aspects of New Jersey’s fishing industry is immediately
impressed with the fact that few people know that the Garden State has
any commercial fishing ports or any commercial fishermen. There’s a tremendous
market out there, not for product but for political support.
Are there any easy answers to “what can the internet do to improve my
business?” Probably not, but it’s probably worth the investment of some
of your time to consider the question.
Related (or just plain interesting) sites:
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The New York Times’ 9/22/99 section on e-commerce. |
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Wegman’s Supermarkets site – check
out how they handle customer’s shopping lists. |
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The National Marine Fisheries Service’s Fisheries
Market News page - reports from various wholesale
markets in the U.S. and info on seafood commodities. |
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Lund’s Fisheries - a
Cape May company that has grown into one of the largest seafood wholesalers
on the East coast. |
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Striped Bass for Consumers – a
section of the New Jersey Fishing site. |
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Home page of the Fishfolk list server – Fishfolk
is a listserve that entertains fisheries discussions from a social (mostly)
sciences perspectives. Participants are academics, industry members, government
types, environmentalists, and fish groupies. This page gives a good feel
foe what list servers are all about. |
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Alaskan Heritage smoked seafood products – a
speciality seafood site catering to an upscale market. |
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Home page of FIS (Fish Info Services) – a
site that provides extensive prices for a multitude of fresh and frozen
seafood products internationally on a city-by-city basis, daily industry
news flashes and extensive company listings. |
Nils E. Stolpe
Communications Director
Garden State Seafood Association
A personal note on e-commerce:
Several months ago my five year old and seriously obsolete laptop computer
gave up the ghost (actually it gave up typing “i,” “l,” “m,” and “.”) and
had to be replaced. I spent maybe ten or twelve hours over three days visiting
discount electronics and computer stores, all parts of large chains, all
with impressively uninformed and disturbingly uninterested sales people,
and none with a laptop computer I felt compelled to buy. After this ordeal
I spent two evenings (web access seems much quicker late at night) visiting
the web sites of perhaps a dozen computer manufacturers and suppliers.
After an investment of four hours of my time I had decide on the computer
I wanted, found a source that had a sales rep who knew what he was talking
about and would ship it to me in 48 hours (guaranteed), and all at a price
significantly lower than any I had found on my three day odyssey. When
e-commerce works, it works really well. |
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