Successful of Ebay

Ebay is one of the success e-commerce in online trading. It is a software program that allowed people to list various interest and various degrees of item in one spot. It allowed people to be able to look at what is available for sale and bid on and buy those items.

Besides that, Ebay allows people to approach with some very lovely and special childhood memories. For instance such as collecting baseball cards to toy soldiers to Barbie dolls to doll houses and so on. It allows people to make that connection and relive a lot of those very vivid and very fond memories that they have from an earlier period of time. Another factor to consider which lead to the successful of Ebay is making people feel comfortable and enjoy the experience of the shopping bazaar. They enjoy the hunt and looking around for merchandise through online shopping. Likewise, the buyers also enjoy the competition of the bidding process since everybody like to bargain.

Subsequently, the environment of trust and safety also one of the factor that make Ebay become so successful. It creates an environment of trust and safety that will allow the users to come back over again and over again. This will enable the tyro online shopper can come to that particular site and feel comfortable shopping there. Thus they can get a good price and a bargain and getting the merchandise that they want.

The Failure of Kozmo.com

History:
Kozmo.com was founded in 1997 by investment bankers Joseph Park and Yong Kang. The company began as a service that deliver videos by bicycle messenger to Manhattan customers who ordered them online.


Factor of failure:
Kozmo.com had raised more than $250 million, but the company was unable to generate enough revenue to cover its costs. In 1999, the company had $3.5mil revenue, compared to $26.4mil losses. The problem occurred when its business model included offering a costly home-delivery service for free. This offer covered a very small order such as a DVD and a pack of gum which it was impossible to turn a profit. As a result, it made the customer satisfied and excited, but it drew losses to the company.

At last, they began to charge $1.99 for every delivery of orders under $30, hoping that the company can escape from financial problems. However, it was too late to recover due to the huge losses encountered by the company.

“We built out a delivery system that worked,” recalls former Chief Operating Officer Skip Trevathan. He added that Kozmo.com was profitable in four cities, but there were seven more cities that made losses. Therefore the company faced financial crisis and closed down.

There are other E-commerce failure for instance, Webvan failed because it expanded its business too soon and Pets.com failed because of spending on high advertisement costs.