
Toys “R” US is an example of an E-Commerce failure. The company breach of contract claim. There is a case happened on Kimberly Alguard made an order by 7th December and requested three to six days delivery. However, she was told by representatives that the order will be delivered by 22nd December. On that day, she noticed the order was not going to arrive by Christmas whereby the order was used as a Christmas gifts for her child. She was ended up by searching other stores to replace the gifts for two days.
In my opinion, there are few causes for an E-Commerce failure
-Shipping delay and holidays may delay the delivery process.
Holidays affect the efficient of the company. Shipping product requires manpower and holidays tend to slow down the delivery process
-The company fails to handle the traffic and deal with many orders.
Toys “R” US heavily promoted its Internet site but it was unexpected that there is huge amount of traffic (1.75 million visitors weekly). It shows that order and delivery are two different issues. However, remedies of US$100 will be given to unsatisfied customers
-Insufficient capital in e-commerce industry.
E-commerce industry is considered as a large expansion. Most companies cannot afford not to put in that investment.
Related links:
1)http://72.14.235.132/search?q=cache:ofw0uWgw_0IJ:teaching.fec.anu.edu.au/INFS3002/_private/New_Folder/LecturePresentations/Wk8-EbusOrgInfrastructure.ppt+toys+R+us+e-commerce+failure&hl=en&ct=clnk&cd=10&gl=my
2)http://www.digital-web.com/articles/etailer_or_efailure/
3)http://www.ecommercetimes.com/story/2204.html
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