| Even if a provider of E-commerce goods
| |
| | Other successful marketers such as use
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| and services rigorously follows these
| |
| | Drop shipping or Affiliate marketing
|
| "key factors" to devise an exemplary
| |
| | techniques to facilitate transactions of
|
| e-commerce strategy, problems can still
| |
| | tangible goods without maintaining real
|
| arise. Sources of such problems include:
| |
| | inventory. Examples include numerous
|
| 1. Failure to understand customers, why
| |
| | sellers on eBay.
|
| they buy and how they buy. Even a product
| |
| | Virtual marketers can sell some
|
| with a sound value proposition can fail
| |
| | non-digital products and services
|
| if producers and retailers do not
| |
| | successfully. Such products generally
|
| understand customer habits, expectations,
| |
| | have a high value-to-weight ratio, they
|
| and motivations. E-commerce could
| |
| | may involve embarrassing purchases, they
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| potentially mitigate this potential
| |
| | may typically go to people in remote
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| problem with proactive and focused
| |
| | locations, and they may have shut-ins as
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| marketing research, just as traditional
| |
| | their typical purchasers. Items which can
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| retailers may do.
| |
| | fit through a standard letterbox — such
|
| 2. Failure to consider the competitive
| |
| | as music CDs, DVDs and books — are
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| situation. One may have the will to
| |
| | particularly suitable for a virtual
|
| construct a viable book e-tailing
| |
| | marketer, and indeed Amazon.com, one of
|
| business model, but lack the capability
| |
| | the few enduring dot-com companies, has
|
| to compete with Amazon.com.
| |
| | historically concentrated on this field.
|
| 3. Inability to predict environmental
| |
| | Products such as spare parts, both for
|
| reaction. What will competitors do? Will
| |
| | consumer items like washing machines and
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| they introduce competitive brands or
| |
| | for industrial equipment like centrifugal
|
| competitive web sites? Will they
| |
| | pumps, also seem good candidates for
|
| supplement their service offerings? Will
| |
| | selling online. Retailers often need to
|
| they try to sabotage a competitor's site?
| |
| | order spare parts specially, since they
|
| Will price wars break out? What will the
| |
| | typically do not stock them at consumer
|
| government do? Research into competitors,
| |
| | outlets -- in such cases, e-commerce
|
| industries and markets may mitigate some
| |
| | solutions in spares do not compete with
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| consequences here, just as in
| |
| | retail stores, only with other ordering
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| non-electronic commerce.
| |
| | systems. A factor for success in this
|
| 4. Over-estimation of resource
| |
| | niche can consist of providing customers
|
| competence. Can staff, hardware,
| |
| | with exact, reliable information about
|
| software, and processes handle the
| |
| | which part number their particular
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| proposed strategy? Have e-tailers failed
| |
| | version of a product needs, for example
|
| to develop employee and management
| |
| | by providing parts lists keyed by serial
|
| skills? These issues may call for
| |
| | number.
|
| thorough resource planning and employee
| |
| | Purchases of pornography and of other
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| training.
| |
| | sex-related products and services fulfill
|
| 5. Failure to coordinate. If existing
| |
| | the requirements of both virtuality (or
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| reporting and control relationships do
| |
| | if non-virtual, generally high-value) and
|
| not suffice, one can move towards a flat,
| |
| | potential embarrassment; unsurprisingly,
|
| accountable, and flexible organizational
| |
| | provision of such services has become the
|
| structure, which may or may not aid
| |
| | most profitable segment of e-commerce.
|
| coordination.
| |
| | There are also many disadvantages of
|
| 6. Failure to obtain senior management
| |
| | e-commerce, one of the main ones is
|
| commitment. This often results in a
| |
| | fraud. This is where your details (name,
|
| failure to gain sufficient corporate
| |
| | bank card number, age, national insurance
|
| resources to accomplish a task. It may
| |
| | number) are entered into what look to be
|
| help to get top management involved right
| |
| | a safe site but really it is not. These
|
| from the start.
| |
| | details can then be used to steal money
|
| 7. Failure to obtain employee commitment.
| |
| | from you and can be used to buy things on
|
| If planners do not explain their strategy
| |
| | line that you are completely unaware of
|
| well to employees, or fail to give
| |
| | until it is too late. If this information
|
| employees the whole picture, then
| |
| | is leaked into the wrong hands. People
|
| training and setting up incentives for
| |
| | are able to steal your identity, and
|
| workers to embrace the strategy may
| |
| | commit more fraud crimes under your name.
|
| assist.
| |
| | Finally there are many problems with e
|
| 8. Under-estimation of time requirements.
| |
| | commerce some of which are:
|
| Setting up an e-commerce venture can take
| |
| | Failure to understand customers, why they
|
| considerable time and money, and failure
| |
| | buy and how they buy. Even a product with
|
| to understand the timing and sequencing
| |
| | a sound value proposition can fail if
|
| of tasks can lead to significant cost
| |
| | producers and retailers do not understand
|
| overruns. Basic project planning,
| |
| | customer habits, expectations, and
|
| critical path, critical chain, or PERT
| |
| | motivations. E-commerce could potentially
|
| analysis may mitigate such failings.
| |
| | mitigate this potential problem with
|
| Profitability may have to wait for the
| |
| | proactive and focused marketing research,
|
| achievement of market share.
| |
| | just as traditional retailers may do.
|
| 9. Failure to follow a plan. Poor
| |
| | Failure to consider the competitive
|
| follow-through after the initial
| |
| | situation. One may have the will to
|
| planning, and insufficient tracking of
| |
| | construct a viable book e-tailing
|
| progress against a plan can result in
| |
| | business model, but lack the capability
|
| problems. One may mitigate such problems
| |
| | to compete with Amazon. Inability to
|
| with standard tools: benchmarking,
| |
| | predict environmental reaction. What will
|
| milestones, variance tracking, and
| |
| | competitors do? Will they introduce
|
| penalties and rewards for variances.
| |
| | competitive brands or competitive web
|
| 10. Becoming the victim of organized
| |
| | sites? Will they supplement their service
|
| crime. Many syndicates have caught on to
| |
| | offerings? Will they try to sabotage a
|
| the potential of the Internet as a new
| |
| | competitor's site? Will price wars break
|
| revenue stream. Two main methods are as
| |
| | out? What will the government do?
|
| follows: (1) Using identity theft
| |
| | Research into competitors, industries and
|
| techniques like phishing to order
| |
| | markets may mitigate some consequences
|
| expensive goods and bill them to some
| |
| | here, just as in non-electronic commerce.
|
| innocent person, then liquidating the
| |
| | Over-estimation of resource competence.
|
| goods for quick cash; (2) Extortion by
| |
| | Can staff, hardware, software, and
|
| using a network of compromised "zombie"
| |
| | processes handle the proposed strategy?
|
| computers to engage in distributed denial
| |
| | Have e-tailer's failed to develop
|
| of service attacks against the target Web
| |
| | employee and management skills? These
|
| site until it starts paying protection
| |
| | issues may call for thorough resource
|
| money.
| |
| | planning and employee training.
|
| 11. Failure to expect the unexpected. Too
| |
| | Products less suitable for e-commerce
|
| often new businesses do not take into
| |
| | include products that have a low
|
| account the amount of time, money or
| |
| | value-to-weight ratio, products that have
|
| resources needed to complete a project
| |
| | a smell, taste, or touch component,
|
| and often find themselves without the
| |
| | products that need trial fittings —
|
| necessary components to become
| |
| | most notably clothing — and products
|
| successful.
| |
| | where colour integrity appears important.
|
| Certain products or services appear more
| |
| | Nonetheless, Tesco.com has had success
|
| suitable for online sales; others remain
| |
| | delivering groceries in the UK, albeit
|
| more suitable for offline sales.
| |
| | that many of its goods are of a generic
|
| Many successful purely virtual companies
| |
| | quality, and clothing sold through the
|
| deal with digital products, (including
| |
| | internet is big business in the U.S.
|
| information storage, retrieval, and
| |
| | Also, the recycling program Cheapcycle
|
| modification), music, movies, office
| |
| | sells goods over the internet, but avoids
|
| supplies, education, communication,
| |
| | the low value-to-weight ratio problem by
|
| software, photography, and financial
| |
| | creating different groups for various
|
| transactions. Examples of this type of
| |
| | regions, so that shipping costs remain
|
| company include: Google, eBay and Paypal.
| |
| | low.
|
