BUSINESSWEEK ONLINE : MAY 15, 2000 ISSUE
BUSINESS WEEK E.BIZ -- STRATEGIES Farming Cyberspace There are a growing number of online auction sites cropping up that cater to the $826 billion U.S. farming industry. Most use variations of the catalog, auction, and bid models. But the demands of the farming industry dictate unique needs. Here's how online exchanges work in the agriculture business. REGISTRATION Many farming auction sites have a straightforward registration process for buyers and sellers. But several agricultural products are heavily regulated, and auction sites dealing in them require a rigorous sign-up scheme. ANONYMITY A few e-marketplaces allow sellers to remain anonymous. Companies that are unloading products at a discount seek secrecy so they won't anger their customers that have paid higher prices. Some sites also ''regionalize'' their product listings so that only buyers in certain Zip Codes can see them. BID/ASK In a bid/ask scheme, the seller sets an asking price and buyers try to outbid each other. Once the offer price and the current bid match, the product is sold. Most sites also offer a straight consumer auction: Buyers set the auction length and the initial bid, and at the end of the auction, the highest bid wins. NAME YOUR PRICE Some agriculture sites feature a name-your-price option similar to that offered by priceline.com. Buyers post what they are willing to pay. Sellers then view the postings and decide if they want to meet the desired price. FEES Farming e-marketplaces rarely take possession of products. Instead, they process the transaction and charge a fee, usually paid by the seller. For livestock, the seller is responsible for housing and transportation costs. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					RELATED ITEMS Old MacDonald Has a Web Site CHART: Online Agriculture Sales TABLE: Farming Cyberspace TABLE: Agriculture Online INTERACT E-Mail to Business Week Online

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