The initial boom in e-commerce was largely driven by business-to-consumer (B2C) retail sales. Pioneers in this space included America Online, Amazon.com, eBay, and Priceline.com, which quickly became household names. The leaders of these companies, such as Jeff Bezos of Amazon.com, replaced traditional economy figures in the late 1990s. The rapid rise of these companies was staggering, with America Online's acquisition of Time Warner marking a significant milestone. However, the dot com bubble burst just as quickly, leading to a swift and severe fall. Despite this, opportunities for niche sites in the e-commerce landscape remain abundant, with the potential for success hinging on credibility, service, and security.
The ascent of dot com companies was nothing short of breathtaking. The announcement of America Online's acquisition of Time Warner marked a significant shift in the business landscape. It was a moment that underscored the power and potential of online companies. However, the dot com bubble burst less than three months after this announcement, in March 2000. The fall was swift and severe, with many companies crashing hard. America Online was one of the few companies that managed to acquire a traditional company at the peak of the dot com bubble.
Despite the dot com crash, opportunities for niche sites in the e-commerce landscape remain abundant. Niche selling often finds itself in a relatively healthy territory. However, these sites face a credibility gap that they must overcome to attract potential customers. Consumers need reassurance that these sites can deliver on their service and security promises. Despite these challenges, online shopping continues to grow both nationally and internationally.
This might not be the best time to start a mass-market toy store like eToys, but it could be an excellent time to launch a site that offers specialized products, such as children's educational software and books that support specific home-schooling curricula. Consumers are increasingly aware of the wealth of specialized goods and services available online, and many are willing to buy from niche sites.
Trust and service remain critical factors in internet retailing. These challenges can be overcome by presenting a site that communicates expertise and delivers on all service and security promises. A high level of knowledge can instill trust in consumers. For instance, a musician who buys dozens of harmonicas each year would likely trust a niche site specializing in harmonicas if the site owners demonstrate a high level of product knowledge.
Interestingly, the best harmonica sites are often run from a family home. The service is personalized, and the owners are quick to offer product information and other assistance related to professional harmonicas. This often leads to the development of a relationship between the consumer and the retailer. This level of service and expertise is difficult to find in a catalog or a store. In the realm of niche internet retailing, there are still golden opportunities. However, success requires considerable expertise, excellent service, and high security. With these qualities, you can avoid the pitfalls of the dot com crash.
The eBay Home Biz Acid Tes
For those thinking of starting an ... ... you're lucky to live in an age and country of immense ... You can launch from home with little capital. You can even test your idea
Amazon Breaks Through
... ... Amazon did it. They made a profit. In late 2000, CEO Jeff Bezos promised he would deliver earnings by the fourth quarter of 2001. Well, the ... is in and he ... agains
The Silver Twinkle in Holiday 2001
After a ... year for dot coms, some good news has finally emerged. A year of downbeat new releases has ... with a very ... up note, brining cheer to Net ... Call it whatever
