Thursday, June 18, 2009
Boo.com failure and its causes
As we have seen the factors that help in the success of Amazon.com in the previous post, there are however a large number of e-commerce companies that are not able to maintain their profit through e-commerce. Some well-known business-to-consumers (B2C) failures include eToys, Xpeditor, Chemdex.com and Webvan.com.
One of it includes Boo.com. It beset with problems and mismanagement from the beginning. The site relied heavily on JavaScript and Flash technology. The dial-up Internet usage was a norm and it has a very small bandwidth. Hence, it time consuming. The complicated design required to be displayed in a fixed size windows limits the space available to display product information to customer. Customers find it as an ineffective way to search for wanted information.
Boo.com’s founders spent £125 million in just six months, to market itself as a global company but then had to deal with different languages, pricing and tax structures in countries it served. Their sales wasn’t up to their expectation, especially when there were a high numbers of returned products by their customers (the company mysteriously decided to pay postage on returns).
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2 comments on "Boo.com failure and its causes"
erm..boo.com, i visited it before, it bring me many beautiful scene picture..but the instructions there not so clear for me, somemore confusing also..
so, not so attract me..
Boo.com should prepare well before it expand itself as a global company. As such, Boo.com will not face the languages, pricing, and tax structure problems.
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