The online grocery market has a new player and its Overstock.com. Yesterday, the off-price e-tailer announced the launch of Farmers Market on its site.
The idea for the project came to Overstock CEO Patrick Byrne about a year ago, he told RetailWire. The site, he said, "isn't anything like" AmazonFresh, FreshDirect, etc. because of its focus on providing a means for farmers, community-supported agriculture (CSA) and co-ops to sell directly to consumers on a local basis.
Right now, Overstock estimates that it reaches about 20 percent of the U.S. population with the new service. It is looking to up that 70 percent by the end of the year.
Each product featured in Overstock's Farmers Market comes with a biography of the farmer or specialty food supplier behind it. The site provides information on the production process to connect consumers more directly with suppliers.
"Pricing is going to be competitive, but it's not going to be discount pricing," Mr. Byrne said. "It's all about focusing on quality, organics and local products where the farmer maintains the majority of the revenue."
Farmers and others interested in joining the program do not incur up-front costs to join. Overstock is using a revenue-sharing model to make the program work.