A success story of E-commerce and its causes

E-commerce sometimes also called as e-business. E-commerce is a type of large business model that enables those users to conduct their business over an electronic network, especially throughout the internet.

Dell computer company began to redefine itself as the company that “knows how E works” in the early of 2000. From the beginning, Dell Company
sells their product and taking orders over phone call and building PCs to the customer’s specifications. But nowadays, Dell has been redefining their business model (direct sales and build-to-order strategy) and converts to the internet. Dell’s website was being created in 1994.

This direct model gave advantage in selling online to Dell Computer Company. Through selling online, Dell did not have to worry about the channel conflict with the resellers and distributors. Other than that, Dell used the internet to link itself more closely to their customers and also suppliers.

Dell Company has provided self-service tools to customers so that they can order online o
r solve a technical problem through internet. This can help them to save time and cost because even though they did not walk out from their house, they also can get any information such as price quote and catalog about Dell computer and then make order through online or by phone.

Most of Dell’s revenue is come from selling hardware as part of the e-business solution such as storage devices, desktops and laptops. Dell sells their product directly to the end user, therefore c
utting down the distributors and resellers such expenses. In year 1995, Dell was shown a major improvement in leading the operational measures such as inventory turnover.

Dell computer company now using the internet and e-commerce to create a closer relationships with their customer in order to improve the effectiveness and efficiency of their company.

http://wiki.answers.com/Q/ What_is_the_meaning_of_e-commerce
http://www.crito.uci.edu/giT/publications /pdf/ dell_ecom_case_6-13-01.pdf

The history and evolution of E-commerce

What is E-commerce?E-commerce(electronic commerce or EC)is the buying and selling of goods and services on the Internet, especially the World Wide Web. Everybody can shop on the web site which they prefer when they have free time. History of E-commerce originated from very old concept “sell and buy” electricity, cables, computers, modems, and the Internet.

E-commerce became possible in 1991 when the Internet was opened to commercial use.First of all, the E-commerce commercial transactions electronically with the help of the leading technologies such as Electroni Data Interchange (EDI) and Electronic Funds Transfer (EFT) which gave an opportunity for users to exchange business information and do electronic transactions. EDI is the exchange of business data using an understood data format whereas EFT is moving funds between different accounts in the same or different banks, through the use of wire transfer, but without the use of paper documents.
Amazon is one of the first E-commerce businesses to establish an affiliate marketing program, and nowadays the company gets about 40% of its sales from affiliates and third party sellers who list and sell goods on the web site. The most popular feature of the web site is the review system, i.e. the ability for visitors to submit their reviews and rate any product on a rating scale from one to five stars. Amazon.com is also well-known for its clear and user-friendly advanced search facility which enables visitors to search for keywords in the full text of many books in the database.
Another company which has contributed much to the process of E-commerce development is Dell Inc., an American company located in Texas, which stands third in computer sales within the industry behind Hewlett-Packard and Acer.
It was launched in 1994, Dell.com was the first company to record a million dollars in online sales by the end of 1997. The company’s unique strategy of selling goods over the World Wide Web with no retail outlets and no middlemen has been admired by a lot of customers and imitated by a great number of E-commerce businesses.


The E-commerce structure has a rapid change because of the innovation Web 2.0. In year 2003, the term Web 2.0 was defined in a conference brainstorming session between O'Reilly and MediaLive International. Web 2.0 refers to a second generation of web development and design that facilitates communication, safe information sharing, interoperability, and association on the World Wide Web. Web 2.0 concepts have led to the development and evolution of web-based communities, hosted services, and applications such as video-sharing sites and blogs.


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A failure story of E-commerce and its causes

Electronic commerce, commonly known as E-commerce, is offering and purchasing or other transactions - via communications and computer technologies of products over the internet. It typically requires a website with a store and a payment mechanism that involves a merchant account and/or a third-party payment facilitator. This greatly reduces costs and improves efficiency and causes many companies interested to move their business into this electronic commerce system. Many companies has successful virtual e-commerce such as dell companies, e-bay or amazon.com but there are also have quite large number of companies unable to maintain their business in e-commerce environment.


An example of e-commerce is boo.com company. Boo.com company is selling branded fashion apparel over the internet .Boo.com is another flop that has been given new life by Fashionmall.com, its original incarnation proved that dot-com flops were not restricted to U.S. shores. Besides that, it is founded in the United Kingdom as an online fashion store. However, Boo.com declared bankruptcy on May 18th, 2002.


Why Boo.com fail as an E-tail on Fashion? This is because Boo.com fails to identify the problems and mismanagement from the beginning went start using this e-commerce. Furthermore, it is also due to bad planning, poor financial control, bad marketing and poor web design. For example, boo.com site is very slow in order to load their page and this has cause majority customer or consumer to wait for minutes to display a product information. The design is also complicated and should display in a fixed size window, this has cause inadequate information is display in other size window page.

Besides, another example of e-commerce failure is eToy.com. EToy.com is also one of the top 10 dot-com flops in a retail website that sells toys via electronic commerce. EToys.com was launched in October 1997, but the company went bankrupt towards the end of the boom on 22 December 2008 and after that it was acquired by Toys “R” Us in February 2009.

Why was eToys.com fail as a retail on selling toys? The reason is the same as boo.com because almost 62 percent of dot-coms is lacked financial skills and 50 percent had litt
le experience with marketing. The other reason is poor customer service , expensive advertising and unable to meet their customer needs. For instance, late in delivery the products to the right location during holiday season. On top,eToy is failure to make any development on the innovation aspect, failure to adjust the compensation plan and failure to budget because this strategies and plan currently constituted in most businesses work against Internet success.

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http://www.cnet.com/1990-11136_1-6278387-1.htmlww.cnet.com/1990-11136_1-6278387-1.html http://www.etoys.com/home/index.jspw.etoys.com/home/index.jsp

http://www.boo.com/

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