Wednesday, June 11, 2008

An example (pets.com) of an E-commerce failure and its cause




Today, businessmen are expending their business through internet in order to compete with their competitor. Businesses often rely on the Web to attract clients, communicate with suppliers, and generate revenues. As a result, the cost of failed online transactions can be significant even a single hour of downtime could cost a retailer thousands of dollars in lost sales. The use of the internet and web to transact business is called E-commerce. E-commerce had brought success to most of the businessman. However, there are also some failures. Now, let us look at some causes of failure in E-commerce and a real world example.


Causes of failures in E-commerce
The causes of failures in E-commerce can divide into four categories namely: software failures, operator error, hardware failures, and security violations. Software failure is failures occur during routine maintenance, software upgrades and system integration. Operator error occurs when the operator either omits an action or executes an incorrect action during system maintenance. Other than that, a hardware failure is also one of causes of E-commerce failure. It can occur for several reasons, for example, wear and tear of mechanical parts and loose wiring. Besides, some common security violations that occur in websites are password disclosures, Denial of Service (DOS) attacks, worms and viruses and theft.


A real life example
Pets.com (1998-2000) The important dot-com lesson was that advertising, never able to give pet owners a persuasive reason to buy pet online. Afteno matter how clever, cannot save you. Pets.com was r they ordered a pet, a customer had to wait a few days to actually get it. Moreover, because the company had to undercharge for shipping costs to attract customers, it actually lost money on most of the items it sold.

As a conclusion, all of the relailer need to enhance their operation and maintenance in order to prevent failure and become success in E-commerce.









1 comment:

Yuenlx said...

good definition, good job, well done...