An example of failure in e-commerce is Pets.com. Pets.com attempted to sell pet accessories and supplies directly to the customer over the webPets.com was launched in November 1998 by Greg McLemore. Then it was purchased by a venture capitalist firm in early 1999. Amazon.com backed Pets.com raised $82.5 millions in an IPO funds in February 2000. However, Pets.com was gone into liquidation in November 6, 2000.
Lack of experience in management and poorly constitute business plan led to downfall of Pets.com. Company has raised multimillion-dollar in just advertisement fees. Besides that, the CEO and management department had little or no experience in running the business. Moreover, because the company had to undercharge for shipping costs to attract customers, it actually was loosing money on every shipment it made.
Furthermore, the information of Pets.com was insufficient. Customer just can view the photo of the pets but cannot touch the pet by themselves via internet. This makes them loss confident to trust on the quality and healthy condition of the pet. If customer really wants buy the pet or the accessories for pet, Pets.com was never able to give customer confirm days the pet can deliver, a customer had to wait a few days to actually get the pet or accessories for pet.
It is very important to know the demand and needs of customer as to satisfy customer service to the customer but Pets.com fail to do this; this causes Pets.com failure in e-commerce.
After see the failure of e-commerce, we must do a lot of strategic planning before implementing e-commerce.
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