While there are no rules that set the reasons for electronic stores to succeed or fail, there are some basic rules that every Internet entrepreneur should consider.
Website It was born with the intention of revolutionizing the online food company, but the only thing that got it was to hang the Closed Sign for Bankruptcy.
So much so, that this American company starred in one of the most famous failures in the world of dotcom. This online supermarket It was created in the late 1990s, in full technological boom, and two years later it has already liquidated the $ 1.2 billion (around 909 million euros) that cost its implementation.
He underestimated the logistics, since his best request was to deliver the order within a maximum of 30 minutes, and he was charged with too high upkeep costs for modern warehouses, which until closing were operating below their profit threshold and by far. far from his maximum capacity. He was wrong.
Technology and business
Although there are no set rules that determine the success or failure of e-commerce , Javier Echaleku , CEO of Kuombo Creed “in e-commerce, the factors we have repeated the closures are usually derived from the low-end training on the Internet as a means; they know the tools, how to get visitors, how to measure the data obtained and how to interpret them. “
In e-commerce it is necessary to master the technical part, but the business should not be overlooked. Many times, the most common mistake occurs when the entrepreneur thinks the online store will work on its own, “and focuses too much on the teeny part, forgetting to try the product.
Not only that. We have seen many times that entrepreneurs who enter the world of e-commerce refuse to create internal teams for their management. Figures like the store manager or the social media are important in the company’s internal strategy, “adds Echaleku .
In the background, many online companies will fail because the medium is underestimated. Some entrepreneurs with little network experience tend to think of the Internet as the little brother of traditional and non-business as another channel with their own rules.
However, despite the fact that a business website is forced to dominate aspects such as positioning and internet marketing , IESE professor Felipe Moscoso Remember that, like any company, an online company must also have a good business plan and appropriate team. And, in the background, starting a business on the Internet is not that dissimilar to doing it in the offline world. The rules are pretty much the same.
Adapt
Exporting a traditional business model to the site is also not error free. Moscoso It warns that the problem, in this case, usually arises after the employer knows not to complete the company with the new channel and does not know how to control it.
A good idea can have many people, the secret of success is knowing how to start it in the best way. Also on the internet. Ángel Cantera, responsible partner for telecommunications, media and technology at KPMG in Spain, believes that anyone who wants to start a business on the Web should know how to position themselves.
“For this it is important to design a good marketing campaign. You must have a good SEO (search engine optimization) and SEM (search engine marketing) strategy. Something not simple. In addition, it is necessary that when the consumer finds you, the experience you live as a user is exceptional. “That is, shopping on that portal is easy, intuitive, secure and does not require many steps.
Tips for your company on the web
- Good multidisciplinary team (technology, strategy, marketing, operations) and with significant experience in each field.
- Analyze the business model, studying the different segments to go for and work out the value proposition to meet your needs.
- Differentiate Get to give the customer something better than what already exists. The price is not everything, it is also important that the shopping experience is satisfactory.
- Know and exactly comply with the communication and sales channels to deliver the value proposition to customers.
- Have a business model that generates short-term revenue.
Source: expansion.com
While there are no rules that set the reasons for electronic stores to succeed or fail, there are some basic rules that every Internet entrepreneur should consider.
Webvan was created to revolutionize the grocery business online, but all he got was to hang the sign Closed for Bankruptcy. So much so, that this American company starred in one of the most famous failures in the world of dotcom. This online supermarket was set up in the late 1990s, in full technological boom, and two years later it has already liquidated the $ 1.2 billion (about 909 million euros) that cost its start-up.
He underestimated the logistics, since his best request was to deliver the order within a maximum of 30 minutes, and he was charged with too high upkeep costs for modern warehouses, which until closing were operating below their profit threshold and by far. far from his maximum capacity. He was wrong.
Technology and business
Although there are no set rules that determine the success or failure of e-commerce, Javier Echaleku, CEO of Kuombo, believes that “in e-commerce, the factors we see repeated in the closures usually stem from the low base formation on the Internet as a medium; that is, ignoring the tools, the way to get visitors, the way to measure the collected data and the way to interpret them “.
In e-commerce it is necessary to master the technical part, but the business should not be overlooked. Many times, the most common mistake occurs when the entrepreneur thinks the online store will work on its own, “and focuses too much on the teeny part, forgetting to try the product.
Not only that. We have seen many times that entrepreneurs who enter the world of e-commerce refuse to create internal teams for their management. Figures such as the store manager or the social media are important in the company’s internal strategy, “adds Echaleku.
In the background, many online companies will fail because the medium is underestimated. Some entrepreneurs with little network experience tend to think of the Internet as the little brother of traditional and non-business as another channel with their own rules.
However, despite the fact that online business is forced to dominate aspects such as online positioning and marketing, IESE professor Philip Moscoso reminds that like any company, an online company also has to have a good business plan and proper human team. And, in the background, starting a business on the Internet is not that dissimilar to doing it in the offline world. The rules are pretty much the same.
Adapt
Exporting a traditional business model to the site is also not error free. Moscoso warned that the problem, in this case, usually arises after the employer knows not to complete the company with the new channel and does not know how to control it.
A good idea can have many people, the secret of success is knowing how to apply it in the best way. Also on the internet. Ángel Cantera, responsible partner for telecommunications, media and technology at KPMG in Spain, believes that anyone who wants to start a business online must know how to position themselves. “For this it is important to design a good marketing campaign. We need to have a good SEO strategy (search engine optimization) and SEM (search engine marketing). Something that is not easy. In addition, it is essential that when a consumer finds you, a life experience as a user is exceptional. “That is, shopping on that portal is easy, intuitive, secure and does not require many steps.
Tips for your company on the web
1 Good multidisciplinary team (technology, strategy, marketing, operations) and relevant experience in each area.
2 Analyze the business model, studying the different segments that go and work out the value proposition that meets your needs.
Differentiate 3. Get to give the customer something better than what already exists. The price is not everything, it is also important that the shopping experience is satisfactory.
4 Understand and correctly implement the communication and sales channels to transfer the value proposition to customers.
