Example of an E-Commerce Failure and Its Causes

An example of ecommerce failure is Nike shoe company. Nike's move to switch to flash for its e-commerce site is a break from traditional methods, with most companies relying on the more straightforward HTML, AdWeek writes. R/GA explained that by switching to flash, Nike is able to improve both user experience and the purchase process by adding a persistent shopping cart, which wouldn't be possible with standard html.

The Flash-based NikeStore.com will replace the seven-year-old NikeTown.com and will carry the same 30,000 pieces of apparel and footwear items as its predecessor.

Forrester Research analyst Peter Kim pointed to increased adoption of broadband and 97 percent consumer penetration rate of Flash in rationalizing the move. "If you tried to do this back in 2000, you'd be dead in the water," he noted to AdWeek. However, in recent years, failing to handle the orders flushed into its website, the company totally lost track of thousands of orders or failed to deliver them on time. The federal commission fined Nike $350000.

The causes of the e-commerce failure-I think part of the problem is when the big company jump into the e-commerce system, they forget some common factors that will affect their company during the holidays. Shipping product takes man power and during the holiday season, it tends to slow the process down simply by the sheer volume of orders of the mail service industry receives in that short period of time. Frankly, not all the companies have the capitol to invest in such a large expansion, if they are going into the e-commerce industry, they can't afford not to put in that investment.

Another failure causes is delivery the stock to customer is not on time. As we should know that, getting customer to the site is one thing, while delivering is another thing. Bricks and mortar retailers have no such problems. Failure to deliver the ordered stock on time to customers and displeased the consumer