The relatively brief history of the Internet is littered with stories of dot-com flameouts -- companies that blew through countless dollars in Venture Capital funding before riding off to the bankruptcy sunset. Most notable of these failed companies were the internet retailers who bragged about their Super Bowl ads, but generated little sales from their monumental branding campaigns. Here's a few selections from the hall of shame https://www.bandf.ie/.
Pets.com
Among the trademark stories from the crash of the initial Internet bubble, Pets.com appeared as if a certain thing. Plenty of cash, a Super Bowl and an unforgettable sock-puppet mascot all placed this pet food delivery service to the minds of countless Americans. The problem was, nobody stopped to take into account whether or not the business design was sound. Works out, it wasn't, as people didn't genuinely wish to wait for your pet food and supplies to arrive via UPS. The business went under after just a year and a half in business.
Webvan.com
In 1999, Webvan.com was the darling of the Internet world. The internet grocer raised almost 400 million dollars in less than 6 months and looked to be coming to Internet success. But a funny thing happened on the way -- people just didn't warm around the notion of buying grocery essentials online. The grocery business has very thin margins to start with, so each time Webvan used a special offer to entice customers, it fell that much deeper into debt. The business closed with little fanfare in 2001 https://www.complasinternational.ie/.
eToys.com
Although eToys.com was eventually reborn after being purchased by KayBee Toys, the initial iteration of the site experienced one of the very most spectacular flame-outs in web history. In other words, the company used the majority of its $150 million is start-up capital to market and build the brand. Once the customers didn't come, the stock price sank to nine cents a share. Closure soon followed https://earsense.ie/.
MVP.com
How could a sporting goods and apparel site backed by athletic luminaries such as for instance John Elway, Michael Jordan and Wayne Gretzky fail? Easy, if you don't have any significant sales growth and can't pay off your loan/investment from partner CBS. Despite a ton of initial PR and almost a $100 million in VC capital, MVP.com closed up shop for good following a single year in business.
Boo.com
The women's clothing company Boo.com was ahead of its time...but not in an excellent way. The website used Flash and JavaScript heavily at the same time when very few people had high-speed Internet connections. As a result, shoppers became frustrated and turn from the site in droves. Boo.com posted a lack of $160 million dollars before it absolutely was liquidated in 2000 https://www.outsourcesupport.ie/.
Why Online Shopping Gets in Right in 2009
The Web 2.0 era has been the scene of more online retailer success stories because now, innovative thinking and real customer growth has replaced "pie in the sky" big ideas that generate no money. Auction houses, overstock companies and deal of the day websites are enjoying success in 2009 since they're smart business models that go easy on the "bells and whistles" and instead deliver no-frills discount shopping to an army of consumers. The web has come quite a distance because these dot-com-busts, and as a result, online shoppers are now treated to more secure websites with better selections and more incredible savings.
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