The customer is always right!
11 years ago
Monday, June 22, 2009
E-commerce has been familiar with the world nowadays. There are so many successful examples of e-commerce however, there are also a numbers of e-commerce failures. One of the examples of an E-Commerce failure I found out is Pets.com. Pets.com is a former dot com enterprise that sold pet supplies to retail customers. It began operations in February 1999 and folded in November 2000. A high profile marketing campaign gave it a widely recognized public presence and its popular sock puppet advertising spokespersonality was interviewed by People magazine and appeared on Good Morning America.
Although sales rose dramatically due to the attention, the company was weak on fundamentals and actually lost money on most of its sales. The high public profile of Pets.com during its brief existence made it one of the more noteworthy failures of the dot-com bubble of the early 2000s. US$300 million of investment capital vanished with the company's failure.
Larry Barrett reported in Cnet news that Pets.com was shutting down because it was unable to find a purchaser or financial banker. The company said it's going to sell the majority of its assets including its inventory, distribution center equipment, content and its sock puppet brand icon. Pets.com was finally closed in 9th November 2000. For an Internet company to survive in an environment for business-to-consumer it is very hard said by CEO Julie Wainwright in a prepared release.
One of reasons that caused Pets.com to close down its business is never discuss their future investment strategies one way or another but they remain bullish on e-commerce. In fact pet supplies are not a natural e-tail market, pet owners are less likely than others to shop online said by Matt Stamski who are a famous analyst. Additionally, the e-tail pet stores have not offered a compelling reason to shop online. Although delivering pet food and supplies directly to consumers is a convenience, but the benefit is outweighed by the fact that the consumer has to wait days to receive their orders, Stamski said. Considering that pet food is available at just abo
ut any neighborhood grocery, few people have a reason to shop online, he said. Thus, this was the main reason that Pets.com going to shutting down although most e-commerce companies have been operating in the red, but Pets.com was among the more financially challenged. In every quarter of operation, the company contended with negative gross profit margins. Furthermore, employees who resign from the company were not replaced which also caused the company could not work effectively and efficiently.0 Comments:
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