Wednesday, June 17, 2009

An example of an E-Commerce failure and its causes




The example of e-commerce failure is Pets.com which is running the business through online. Pets.com is the latest internet company which had shut down. The business which is carry out by Pets.com is selling pets such as puppies and cats. Everyone can choose the type of pets they want and even the age and gender of the pets.

However, Pets.com is making a failure in running the business through online. This is because Pets.com does not offered a convincing reason to buy pets through online. Moreover, the buyer who wants to buy a pet can be more easily find pets in any pet shop which is nearer in their place. In addition, the delivering and the supplying of the pets food to the consumers is not convenience since they can buy the pets food from the grocery.

Another reason that the consumers do not prefer to shop online is because of the time consuming in receiving their pet. The consumers can only receive their pet after few days after they make an order. As if the pets cannot be received on time, it may reduce the trustworthy of the company on their services they had been provided. From this reason, consumer will be persuaded to buy pets from shop rather than online.

Other than that, it is not a good environment for business to customer (B2C) for Internet companies. Furthermore, it is difficult for Internet companies to provide a convenience place for the consumer especially Pets.com. Whenever the consumers would like to request about the problems that have been faced by their pets, they probably cannot get the answer directly from the supplier or seller. They may be required to contact them through online and get the reply from the supplier.

In conclusion, although doing business online has a great prospect, a company still has to consider various matters before conducting business through online.


Related links:
http://news.cnet.com/2100-1017-248230.html

http://www.pets.com/

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