Ecomm blogger

One of the most famous example of e-commerce failure would be the e-tailer Boo.com which was launched on 3rd November 1999, that added fears about stability and viability of existing and other future online retailers. Boo.com was funding by investors such as Benetton and Bernard Arnault, the chairman of LVMH, Europe largest luxury goods group. This Boo.com not only become the most heavily funded Internet start-up in Europe but also become the high profile. But, the launch has delayed for six months due to technological problems that reported from various sources. Huge spending on consulting fees in order to launched the website and $6 million was spent in fashion ware which has to be discounted in the end because it was no longer fashionable by the time the site was eventually launched. In addition, slow browsing, poor navigation and irritating technology make lost of potential customer and gained Boo a bad reputation.

Reason of failure include poor web design usability where products are zoom all around the page an customer need to practically have to play target practice in order to select the product they want. there were several reports of 'computer text' appearing in web browser instead of graphics, and complaints that customers were unable to purchase products. The Financial Times reported that one customer have been advised by Boo to "limit the amount of transactions they made, to three per twenty minutes". Obviously, this kind of approach could discourage potential and existing customers from shopping over the internet at all. It is very clear from the customer poor online shopping experiences, there was no sufficient testing was undertaken nor were their circumstances were taken into account. E-businesses should ensure their sites are fully tested and refined before promoting them otherwise they will risk losing customer as well as revenue. Test should incorporate actual audience members and include some professionals, and those who know little about trading and those who had never traded online.

With bad marketing, Boo marketed itself as a premium sports, urban street wear and fashion retailer, stocking quality products for the conscious young individual. Premium products came with expensive charges but customer are attracted more to by online at cheaper prices. When clothing is view to be important with nature behavior of customer like to see, feel and try on items before buying, Boo.com's clever teccnology enabled shoppers to view the items in 3-D and gave a distinc visual feel of the products. unfortunately, they did not account for the key internet driver-lower prices. Apart from that, brands that involved in Boo.com did not wish to offer discounts as it will devalue their brand. The publisher of 'Computing' show the three main reasons for web purchases in UK as 'easy and convenience', 'better prices' and 'speed of process', but Boo.com fulfilled none of the criteria.

Pattern of spending from technology cost was the construction of Boo's technology platform which involved hefty programming for multi-currency sales and product delivery. In addition to the initial outlay of the website, there were high maintainance expenses with five thousand pounds a month for creating 3d photographs of its products for the website. There is also feedbackfrom employees about excessive employment benefits and luxurious spending but these benefit were later justified as in order to attract 'some of the brightest brains in Europe'. Although there had been improvements in the website, but Boo.com was forced into liquidition when it's investor refused to inject any more cash into the business as it had already spent $380 million. Boo did suceed in creating a 'hip and trendy' image suitable for attracting young shoppers but on the other hand, the performance of the site gave the brand a reputation of being customer unfriendly.

A website should be vigorously tested and the structure and site should be completely ready before marketing the brand. using professionals to ensure the site is one hundred percent robust, will deter any embarrassing publicity from damaging the brand and ensuring customers of a stress free shopping experience. budget and sound marketing plan should be in place beforehand and followed. Expensive advertising campaigns maybe effective, but more investment should be placed on retaining existing customers through good Customer Relationship Management.

Prepared by Wong Kai Lei