Nowadays, many companies will prefer to convert their business into e-commerce system. They rather buy and sell their products or services through internet compare to having a physical store to sell their products or services.
An example of the e-commerce failure is Toys R Us Company. Toys R Us Company is a click-and-mortar company. They conduct some of their business through online but their primary business is done in the physical world. This company is the leading retailers of toys, children's apparel and baby products. In order to provide the customers the products and services whenever and wherever they need, Toys R Us announced its plans to create an e-commerce subsidiary- ToysRus.com. ToysRus.com has established in 1999 as a premier online toy, video game and baby store outlet.
The causes of failure:
The ToysRus.com fails to handle the orders and also had a lost track of thousands of orders or failed to deliver them on time. Although the company had pumped millions of dollars into setting up its own online operation and distribution network for order fulfilment it had to announced 75% slump in profit 2000. The main failure cause is delivery of stock to customer is not on time. Time is money, ToysRus.com faced a problem of punctual for delivery section and due to this reason their sales had decline lower and lower. Bricks and mortar retailers have no such problems. Failure to deliver the ordered stock on time to customers caused the company to give away hundreds of $US100 vouchers to displeased consumers. besides, the causes of the e-commerce failure in the Toys R Us company is the inability of the customer to choose the products more effectively sold online compare to the real world. 
Other causes...
Poor experience....
A common theory about dot com companies is that they were all being run by a bunch of people with no previous management experience. Example of ToysRus.com will failure in e-commerce because of the founder of ToysRus.com had no experience with the retail toy industry. Generally management experience is considered to be one of the most important contributing factors to success or failure. Without previous experience, a business is more likely to fail. In the case of these online retailers, even though there was a wide range of experience among the leaders, it may have been the lack of specific industry knowledge that contributed to the failure.
Competitive Environment...
Another cause of failure is competition environment. The ToysRus.com was competing with companies such as eToy.com that had not only an online presence, but also the perceived stable infrastructure of bricks and mortar.
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