Examples of the success and failure of companies in e-commerce
In light of the spread E-Commerce A large number of sites and programs have appeared through which we can shop. However, not everyone has enjoyed success and fame. There are those whose work was crowned with success, bringing their online store to the pinnacle of fame, and there are those whose e-commerce failed and then their work ended with the store closing. There are many examples of the success and failure of companies in E-commerce, which gives us a lesson in how to maintain success and avoid failure.
Below we have collected for you the most important companies that have achieved major successes in the field of e-commerce, as well as those whose experiences have failed.
Read also: What are the obstacles to e-commerce?
First: Examples of companies that have succeeded in e-commerce
Many online commercial sites have achieved great success over the past few years, especially those sites and companies that relied on reaching the audience through the mobile phone, and designing their sites and programs to be compatible with people’s uses of the smartphone. Examples of these companies that have achieved success in the field of E-commerce is mentioned below:
- Walmart Inc
Walmart has achieved unprecedented success in the field of e-commerce, despite having physical stores on the ground. However, it decided to enter the world of online shopping to achieve great success. The company then launched several different developments on the Internet, such as improving customer service and developing its website to be compatible with phones. Smart, so that the company could increase profits to 40% from e-commerce sales alone, which led to an increase in investment in the company by more than 10% of shares.
- Amazon company
Amazon is considered one of the leading companies in the field of e-commerce. It has been able to top the list of the best in terms of innovation and high sales rates for all products. The company has been able to build its commercial reputation worldwide, gaining the trust of many consumers and becoming the first destination for online shoppers, to develop... The company has built a website that is compatible with mobile phone users through its application.
- IKEA company
One of the most important companies that succeeded in e-commerce and developed its business to keep pace with artificial intelligence innovations, creating its electronic application that includes augmented reality technology, thus becoming the first company to use this technology, which enables users to choose the products and furniture they want, by applying it in Their homes before purchasing and knowing whether it is compatible with the home or not, which motivated many consumers to use the company’s application, bringing IKEA to the top of the list of the most innovative companies in the field of e-commerce.
- Macy's company
Macy's suffered a huge loss at the beginning of its business, but the company returned again through its online store, which was launched in 2010, and then became one of the leading companies in the field of e-commerce. The company designed an application for smart phones to enable it to reach a large audience base, which helped it in Increasing the sales rate, the company also added the feature of scanning through the phone camera to search for the products they want to buy, so that the company can reserve its position among the best companies in e-commerce.
Second: Examples of companies that failed in e-commerce
With the emergence of thousands of startup companies in e-commerce in the past few years, in which a lot of money has been invested, there are many of these companies that have suffered huge losses and failure in their e-commerce, and examples of these companies are:
- Alikolo company
Alikolo was launched online in 2014, with the aim of connecting the seller with the buyer, similar to Alibaba and Amazon. The company takes the goods purchased from the seller and delivers them to the buyer with free shipping. However, the company suffered a major failure that led to the company’s closure. The first reason for the company's failure was its lack of creative marketing and ignoring the capabilities of competitors, in addition to offering a large portion of the company's stake to speculators.
- Laurel & Wolf Company
It is a company that sells home designs and furniture. The company announced through its marketing campaigns that its products fit all budgets, even the low ones. The company’s success continued for four years, after which the journey of decline began, as the company lost many customers, as a result of bad advertising campaigns in addition to the financial loss that occurred. During shipping, the products were damaged or did not arrive at all, in addition to the employees’ rejection of the company’s management method, causing chaos to spread within the company, all of which later caused the closure of its store and website.
- Totsy Company
It is a company specialized in selling children's supplies over the Internet. This company achieved great success at the beginning of its launch and millions of people shopped through it. The company was offering international clothing brands at low prices, in light of the economic crisis that the world went through and the recession that affected all companies. However, after the end of the recession, competitors returned again, which made the company return to its competitive prices, which made the company lose its basic attraction, which is low prices, which led to the loss of many customers and the loss of the company later.
Therefore, working online requires multiple skills and a lot of money will not be enough to achieve success. Through previous examples of the success and failure of companies in e-commerce, you can learn some important points that will determine the extent of success or failure of companies in online commerce.
