After our blog about the example of E-Commerce success and its causes. We should also study about some of the failures in E-Commerce and its causes. There are several examples of E-Commerce failure such as flooz.com, beenz.com, pets.com, kozmo.com, and etc.
One of the failure example that we have studied is flooz.com. "Flooz" is an Arabic word gives a meaning of "money". Flooz started as an internet merchandise. It was a platform for people to purchase things through flooz.com by using the currency created by flooz.com. Its competitor was beenz.com. Flooz.com was founded in February 1999, based in New York City and was promoted by an actress call Whoopi Goldberg. Unfortunately, after some inccident, it went into defunct on 26th August 2001, it also happened with beenz.com. All flooz credits became useless and also cannot be refund. That time, flooz.com used up from $35m to $50m in venture capital was reported.
The problem that caused the closure of flooz.com is because of the lack of security. Flooz was involved in an internet fraud. Some victims' credit cards was stolen by credit card theives in Russia to buy the flooz currency and redeemed it. This provide the credit card theif to purchase thing online. Using online currency to purchase product or a survise is risky if the internet security is not strong to protect form the stealing of credit card theives. After the case happened, both internet currency e-commerce, flooz.com and beenz.com went into bankruptcy.
However, nowadays, internet currency trading still exists. For example, fxmates.com. A cyber crime is being concerned. With the high technology, internet fraud will be getting control time by time in future.
Here's the end of topic about e-commerce failure and its causes. Let's read about our next blog. Topic about E-Commerce in Malaysia: Implementation and Application.
References:
The 25 Worst Business Failures in History, from
Wikipedia Flooz.com, from http://en.wikipedia.org/wiki/Flooz.com
Top 10 Dot-Com Flops, from http://www.cnet.com/1990-11136_1-6278387-1.html
E-Commerce Report; Seller of Online Currency May Have Been Victim of Fraud, from
Flooz.zom, from http://flooz.com/
FxMates.com, from http://www.fxmates.com/
This kind of discussion is more appropriate for e-currency topic. Writers should pay attention to grammar and spelling as the content is available to everyone
ReplyDelete