E-CoMm3eRcE

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.

The history of e-commerce is an important component that helps to understand internet history better and explain the important of different stage in a process of change through which e-commerce has actually evolved. Basically, e-commerce refers to the process of buying, selling, transferring or exchanging products and services via computer network.

Since in the early 1970s, the evolution of e-commerce already have been combined regulatory reform and technological innovation. The first developed with innovations came from Electronic Funds Transfer (EFT), whereby funds could be routed electronically from one organization to another. However, it constitutes to certain limitations such as these applications only restricted to large corporations, financial institutions and other adventure business.

The next will be concerned on the development of the Electronic Data Interchange (EDI). EDI provide a set of standards for electronic transactions and the exchange of business information. EDI also expended the pool of participating companies from financial institutions to manufacturers, retailers, services and other types of business. One of reason for companies may not be able to interact or make transaction with other companies because business can use several different EDI formats.

Therefore, in year 1984 was standardized through ASCX12 and this make sure that companies would able complete transactions with other companies reliably and stability. The systems called Interorganizational system is a one of e-commerce applications and identify their strategic value to business widely.

Besides that, the first chance given to people purchase things through their computer is when the Mosaic web developed. Mosaic web also is the first "point and click" browser in year 1992.

Then, the first download able browser was Netscape and developed based on Mosaic. Netscape is browser provide easier access to e-commerce to all users. Nevertheless, the development of Digital Subscriber Line (DSL) found in e-commerce which provided high speed internet access. Although the internet began advance in general public in 1994 but it also took four years develop the security protocols and DSL.

Lastly, in year 2002, when the internet become more common and commercialized, people started analysis the term e-commerce as the process of buying of goods and services through internet by using secure connections and electronic payment services. At this time, number of users began take part in the World Wide Web and the term e-commerce was created. The early user e-commerce is Pizza hut Sdn Bhd which their provide delivery services to their customers via telephone.

The reasons for e-commerce expand quickly was the development of new networks, protocols and e-commerce software. At the present time, B2B is largest e-commerce. From year 1999, e-commerce starts to emphasis large growth in Business-to-Consumer (B2C). Even though B2C e-commerce might become more commercialized but there are different varieties. Therefore, from year 2001 e-commerce shifted from B2C to B2B and B2E, e-commerce, e-government, e-learning and m-commerce.

References :

http://www.ecommerce-land.com/history_ecommerce.html

http://newmedia.medill.northwestern.edu/courses/nmpspring01/brown/Revstream/history.htm

http://www.mapsofworld.com/referrals/internet/internet-history/history-of-e-commerce.html

eBay is The World's Online Marketplace®, enabling trade on a local, national and international basis. With a diverse and passionate community of individuals and small businesses, eBay offers an online platform where millions of items are traded each day. It allows people pursue their interests and their passions in the areas of their hobbies and their collectibles.

• The key success of eBay is cause by the Effective which is concerned with “doing the right thing” between Persistent Marketing and Public relationship of the owner. By implement the strategic marketing policies in promoting their products and the cheap price quoted, it attracted a lot of customers to view and purchase their product all the times and indirectly continue increase their profit.
  

• Another cause of their success is eBay give great customers’ services. Ebay maintain continuous concern on their customers and understand customers’ needs. Maintenance and warranty are provided to the customer that purchases their goods and found out damages.
  

• eBay provided easy and convenience tools for the users to select their items purchases, simply clicking on the product, the design of the web page will bring customer to other sites of the products. Users’ friendly web page allows customers to view on details and explanation on the products before making any purchases.

• Another key success of eBay is based on the safety banking payment process. Ebay business provides safe environment for the users and customers that browse their web page and when they are making purchase through the internet, this site make it private and disallow hacking on customers' password by other intentional hackers.

Fundamentally, it is so successful because it meets its customer's needs better than any competitors do. Nowadays, people are becoming more and more comfortable with shopping online and they're getting more and more accustomed to doing that. That's another factor why eBay is grateful.

References:

http://www.cs.brandeis.edu/~magnus/ief248a/eBay/history.html

http://www.ecommercetimes.com/story/2127.html