An example of an E-Commerce failure and its causes
Monday, June 16, 2008
Do you have ever browsed this website? http://www.shoe22.com/ . This fraudulent website is no longer doing business anymore. In previous, the shoe22.com is online retailer of doing shoes business. However, its dishonest in running business has received many complaints against shoe22.com with the comments “don’t trust it” or “good liars”!
In the case of shoe22.com, most of the complaints are about the company didn’t send the shoes or sent the wrong shoes to customers while the payment is made. They have ever tried to contact the company through e-mail, but most of the customers get no response. They are all heartbreak and disappointed because their hard earned money were rip off by the company!
The main factor that leads e-commerce to failure is fraud, most of the transaction dealt in e-commerce is required customers to make the payment first but what’s the guarantee can be issued to ensure the customers could have received the merchandise later? Normally is no! It is simply depend on credit of the organization. This is the factor cited people as a reason why they are discouraging from online shopping.
Furthermore, the customers’ service is very poor, shoe22.com responses the e-mails selectively and even avoid replying from those questions about the status of refund payment by giving them excuses. Apart from that, shoe22.com deliberately gives the inappropriate information of merchandise intends to mislead the buying decision of customers. For instance, many customers discover that the quality and design of shoes are unconformity with the provided picture.
In result, the rotten reputation made shoe22.com to be close down. No company will survive if it is known for no integrity in business. In the other hand, customers are advised not to buy the incredible cheapest price from unknown website because it is usually tend to be a scam!!
Notice: Do you have interest to find more complaint cases reporting in web-site?
Check on it http://www.ripoffreport.com/default.asp
An example of an E-Commerce success and its causes
is one of the top electronic commerce and internet retailers. It sells almost all kind of the products through internet. Furthermore, this pure-online organization makes an amazing figure of net income US$476 millions in year 2007. Its success is any online retailer hope to be achieved. However, is it an easy target? Are they spurred by excellent strategies? Or Amazon.Com just depends on good lucks? This is everyone interest to know as they want to be a next Jeff Bozos, the billionaire, the organizer of Amazon.Com.
I find it that the “recommendation” in Amazon.com is closest to the customers. Do you have ever heard about this function? This function will recommend customers the other items that they may interest and it will change regularly based on the purchase or rate a new item by customer. Put it another way, the recommendation will change while the interest of customer changed. As a website browser we know that we are always missing some information or similar products we are looking for. With use of this, we can get the instant message of related products. Indeed, this function is quite useful and concerning for every single customer’s needs.
“Wish List” is another great way for customers to create their own lists in order to let others know what he or she wants and even lists the items they want to sell. It has attracted many of secondhand sellers to leave their items hawking in Amazon. Com. Furthermore, “Wish Lists” helps customers to discover the new products and the information which is kept up-dating in anytime. Therefore, it enables customers can compare the price with up-to-date information to others.
click on picture for details!!
The "Recommendation" and "Wish Lists" , this two important tools used by Amazon.com gain a competitive advantages from other competitors. Contrast to other online retailers, this two excellent tools have make a big difference between Amazon.com and others since they have no this service function. In addiction, "recommendation" and "Wish Lists" have satisfied online seller and buyer requirements. Apart from that, the relationship between Amazon.com and customers has improved to be more closer than ever by provided to this service tools.
In the other hand, Amazon.com urge the online buyer to use the electronic transaction. For instance, it has a whole page is devoted to convincing its potential customers that using credit cards in processing transaction in their business is very safe. However, the customers have also provided the other options to made payment if they still unsure about using their credit card online.
The main strategy of Amazon.com is based on concept of Bezos, he says what is customers required are biggest selection and lower price. In fact, Amazon.com has put many efforts in order to low down their price, such as the elimination of middlemen; they sell the product directly to customers. What do you think how many employees, an organization have to hire which can produce total revenue of US$14835 million annually? The answer is 14000 only!! It means the major cost – employee wages has reduced to a minimum level. Moreover, the online companies are exempted from sales tax and operated license fees in many countries. All of these evidences prove over and over again that the efforts of Amazon.com to reduce the expenses, and thus customers can enjoy the benefit from lower price.
Amazon.com has successfully pushed up the sales turnover by using the excellent strategies, tools, and services. Furthermore, the advantages create a win –win situation to sellers and buyers in processing transaction. In result, Amazon.com has become a hottest and earth’s most customer-centric company.
