FUNCTIONAL FEATURES OF INTERNET STORES BY FOOD COOPERATIVES

Abstract

The article reflects the functional features of online stores organized by food cooperatives. In particular, it has been established that this topic is under-researched both in Ukrainian and foreign economic science. The analysis was carried out and the main information on the activities of food cooperatives in the USA and Canada was summarized (on the example of Oklahoma Food Cooperative, Iowa Valley Food Cooperative and Ottawa Valley Food Co-operative). The advantages of such cooperatives for producers and consumers (members of these cooperatives) are clarified, and their main difference from traditional stores organized by entrepreneurs is also indicated. The main functions of food cooperatives are reflected, including: provision of services at cost price (without the inclusion of «intermediary» profit), preservation of a fair price balance between the interests of members from among producers and consumers, provision of services to producers (primarily sales of products) at the most favorable price, and consumers with goods at the lowest possible price. A general description of two existing groups of food cooperatives regarding their use of online stores is provided. It is emphasized that some of them create online stores as the main tool for carrying out statutory activities, and others – to expand their capabilities (the main role in the activity of such a cooperative is played by an offline store). The specifics of the software used by food cooperatives are revealed. A number of advantages that a food cooperative receives using modern online store technologies are indicated. It is also emphasized that the operation of a «cooperative» online store has a significant socio-economic effect not only in the context of significant savings, but also strengthens trust between representatives of local business (producer members) and the population (consumer members), promotes the consolidation of local communities. At the same time, the existence of the problem of the lack of a single legal framework for US cooperatives is indicated. This problem has been recognized at the state level. The article also emphasizes the need to form a unified legislation for the entire country regarding the registration of cooperatives, as well as a special law for cooperatives. It was concluded that the generalized experience can be creatively used by Ukrainian society, in particular by labor groups, religious communities, other communities of citizens and local farmers.