E-Commerce

An example of an e-commerce failure and its causes

As we known, e-commerce is a short form of electronic commerce which involving in buying and selling of products or services by using electronic systems such as internet and other computer networks. In the business world, many companies prefer to convert their business into e-commerce system because it is one of the best marketing channels for small to medium-sized businesses and the cost of establishing an e-commerce site on the World Wide Web is cheaper. However, there are some successful virtual e-commerce companies such as eBay, Google, or Yahoo in recent years. But, there are also appear a large number of e-commerce companies which is business-to-consumers (B2C) failures, most of them are unable to maintain their profit through e-commerce, the most common well-known is .

In year between 1997 and 2001, in the face of an e-commerce failure by few causes. is failure to make any develop on the innovation site because innovation is very important in the B2B e-commerce, it can be revolutionary or evolutionary those are needed to reduce human involvement in the business processes. Nowadays, internet as a communications medium for most marketers that they are looking for, therefore, implement the internet as a strategy is very important for B2B e-commerce such as facilitate an entirely new business model or a new strategy to advance the relationship without a salesperson.

Besides that, delivery the stock to customer is not on time. As we know, consumers get into the site is one thing, whereas delivering is considered as another thing. Failure to deliver the ordered stock on time to consumers caused to give away hundreds of $US100 vouchers to displeased consumers unnecessarily. Moreover, the compensation plans as they are currently constituted in most businesses work against internet success, because of any salesperson has even the threat of loss of income due to e-commerce, which make e-Toy failure to adjust the compensation plan caused the internet advancement delay.

However, there are some methods for e-commerce company take up certain actions to avoid failures. To become a successful e-business must have multiple channels of communication, not just the Web. Therefore, company should not focus too much on “e-commerce”, because consumers are more rely on personal attention. Otherwise, a successful e-commerce website must be fast, easy to use, convenient and perhaps fun. Create a long-term business relationships are important in the electronic world because it can getting comfortable and the relationship will continue to exist.