An Example of E-commerce Failure and Its Causes

Nowadays, E-commerce had become so popular in our life. Most of us know about e-commerce is through online shopping. Online shopping had growth rapidly in the E-commerce society as it is so convenience for us as we just need to stay at home online, click few buttons and paying it by credit cards or other payment methods. Then, the goods will be sent to our house. It is convenient and useful for us as we need not rushing here and there to purchase the things that we want. Even we can buy things that are not available in our country. But why E-commerce still fails and what are the causes??

Let us take an example of Jeans Online. “Why people do not buy the jeans online?” if you want to buy a jeans will you buy online? As for me, I will not buy it because I can’t try it on and can’t check the quality of fabric. Although it is still a “real” business, unfortunately it is unlike other businesses. People will have lack confidences to purchase a jeans compare with buying a book online. Let take another example of amazon.com which selling books online. Amazon.com has succeeded all the way as the book is different from the Jeans. You can buy a book when the book title is interested or useful but Jeans cannot. There does not have any fitting room develop in the web and thus we cannot try the jeans before purchase it. Besides, the cutting of the jeans may be bigger or smaller than other. This will be troublesome if we had purchased a jeans that does not fit to you. So the failure and causes is it cannot be try and customize before purchase.

The second failure and its cause of E-commerce is the cost of develop. The company may meet a lot of trial and error, before they can carry out their business in a cost-effective way. There will need a high startup cost when a company start to do online business. However, what is the most purpose of doing business? People will sure try to generate profit in a faster way, and thus they will try to sell the product more expensive. However, the consumers also wouldn’t buy an expensive good from online shopping, you know why? This is due to the reason if the goods are expensive, why I want to buy online? It is better for me to buy in physical shopping. The consumer wants buying online is because the goods are cheaper and more conveniences compared with go out shopping physically.

Thirdly, the tools of developing the E-commerce are not democratized. Actually if you did not involved with E-commerce you probably would not have encountered it. To get a right tool in place to allow you to sell the products are expensive and ridiculously hard. For example, something getting a proper merchant account and flexible credit card processor doesn’t come cheap. So it becomes failure.

Next on failure of E-commerce are poor customer services. If you do not serve your customer well this can make your E-commerce business failed. The customers will not visit your website again. This is because if the customer services of online shopping is poor then why I need use it? People will choose to buy through physical shopping as it will be better and more satisfy.

The last issue is the security problems. Once must make sure the website is as secure as possible E-commerce must have sufficient protection on the customer’s credit card information as it is vital enough. Moreover, it also needs to over look the securities system as to protect the customer’s information such as billing address, phone number and email address. Theft will be occurred if the E-commerce company failed to do so. The information of credit card will access by the hacker. In such situation, do you still want to purchase gods from online shopping if you know that the security is poor??