E-commerce strategy for agricultural product transaction market based on information asymmetry

Issues on agriculture, countryside, and farmers are the most pressing problems that China is facing at present. The price of agricultural products, which are represented by vegetables, often fluctuate sharply and dull sales of agricultural products occasionally occur. Agricultural product circulation is the key constraint in agricultural development. In this paper, e-commerce is used in agricultural product transaction, and new solutions to issues on agriculture, countryside, and farmers are provided through the e-commerce platform. Information asymmetry in agricultural product transactions in Hubei Province is analyzed by combining a literature review and a market investigation. The role of e-commerce in Pareto improvement is demonstrated by theory of market transactions. O2O is used as the Pareto improvement in agricultural product transactions and policy suggestions are proposed for Hubei Province to develop the O2O mode of agricultural products. According to the research results, O2O mode in the agricultural product transaction field can lower transaction cost, simplify circulation, and provide a reliable means for solving issues on agriculture, countryside, and farmers, thereby promoting agricultural stability, rural development, and farmer income growth. The results have important practical significance in formulating e-commerce policies of agricultural products, as this research is conducted on Hubei Province, which is an agricultural province in China, and can provide other provinces and cities with reference in the construction of an e-commerce platform for agricultural products.