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Sunday, June 15, 2008

An example of an E-commerce failure and its causes




Starting in 1999, well-known B2C failures include eToys, Xpeditor, MarchFirst, Drkoop.com, Webvan.com, and Boo.com. Boo.com was a United Kingdom company founded by Ernst Malmsten, Kajsa Leander and Patrik Hedelin, which later falled after having to liquidate and was placed into receivership in 18 May 2000. Boo.com’s intention is to sell branded fashion clothing through the Internet.
Boo.com is beset with problems and mismanagement from the start of the business. The site was heavily relied on JavaScript and Flash technology, but as that time it was very slow to load at a time when dial-up Internet usage was a norm. Hence, it took vast majority users to wait minutes for the page to load. The complicated design required to be displayed in a fixed size windows, which will limited the space that available to display product information to customer.

Boo.com’s founders spent £125 million in just six months, to market itself as a global company but then had to deal with different languages, pricing and tax structures in countries it performed. The company's sales was not up to their expectation, especially when there were a high numbers of returned products by their customers (the company mysteriously decided to pay postage on returns).
However in recently, Boo.com, re-launches as the “ultimate online destination for travel” under owner Web Reservations International (WRI), which claims to be one of the world’s most successful e-businesses.

1 comment:

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