An example of an E-commerce failure and its causes Boo.com
E-commerce has gradually become part of our lives. However, in its path of development has a lot of failure experience from earlier period companies who adopted it. Now, I will interpret one of the examples of failure of e-commerce. That is Boo.com, which is a clothing e-retailer, was launched 3rd November 1999. Boo was the first company to launch e-commerce across in multiple countries from the day the company was formed. Indeed, the company will face a lot of challenges that cannot be foreseen. Besides financial situation, marketing and management strategies also contribute to its downfall.
DOWNFALL CAUSES:
1) Poor Web Design and Usability: Customers prefer simple and quick to use in browsing the dot.com. The “three-click rule” is a site design, which simply means that users should not need to click more than 3 times to find the information they seek. Customers sick of the overuse of technology.
2) Bad Planning: Bad planning in several areas of Boo.com’s strategy was the key of its downfall. Its Swedish founders were too ambitious in their business plan and wanted to dominate the market immediately. Indeed, the founders did not start with small business and then expanding slowly. Lack of “bricks and mortar” retailing experience lead to the failure of Boo.com.
3) Lack of Sound Financial Management: The cost Boo.com spent out of control due to lack of sound financial management. . The ‘Financial Times’ describes the pattern of spending from technology costs, through to employment benefits. They believe the biggest cost was the construction of Boo’s technology platform, which involved hefty programming for multi-currency sales and product delivery.
To be a successful e-commerce, the website needs to give the users pleasant experience, easy and convenient to purchase and speed of process. If fulfill the above criteria, you can won the customers’ heart.
References:
http://www.tnl.net/who/bibliography/what_I_learned_at_boo.com/
http://www.edigitalretail.com/Most_Famous_Dotcom_Failure.pdf
DOWNFALL CAUSES:
1) Poor Web Design and Usability: Customers prefer simple and quick to use in browsing the dot.com. The “three-click rule” is a site design, which simply means that users should not need to click more than 3 times to find the information they seek. Customers sick of the overuse of technology.
2) Bad Planning: Bad planning in several areas of Boo.com’s strategy was the key of its downfall. Its Swedish founders were too ambitious in their business plan and wanted to dominate the market immediately. Indeed, the founders did not start with small business and then expanding slowly. Lack of “bricks and mortar” retailing experience lead to the failure of Boo.com.
3) Lack of Sound Financial Management: The cost Boo.com spent out of control due to lack of sound financial management. . The ‘Financial Times’ describes the pattern of spending from technology costs, through to employment benefits. They believe the biggest cost was the construction of Boo’s technology platform, which involved hefty programming for multi-currency sales and product delivery.
To be a successful e-commerce, the website needs to give the users pleasant experience, easy and convenient to purchase and speed of process. If fulfill the above criteria, you can won the customers’ heart.
References:
http://www.tnl.net/who/bibliography/what_I_learned_at_boo.com/
http://www.edigitalretail.com/Most_Famous_Dotcom_Failure.pdf
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