Finding Your Way in an E-Market
By Cheryl Currid
The successes and failures of e-commerce pioneers have already taught us some humbling lessons. Companies that sell everything from cars to chic clothing must learn that online customers don't always buy where they shop, or show coherent purchasing patterns, or stay locked in to the relationship. Confusing? You bet. Ambiguity is the only consistent characteristic of e-commerce.
In fact, when it comes to selling online, customers and competitors are moving targets. So whether your business is banking or banana farming, it's hard to define the best selling practices.
The Argument for Staying Home
In some industries, there may be little competition or incentive to open an e-commerce site right now. Online sales are hot—but only in certain market segments. So study your industry carefully. "Do it or die" may sound catchy, but "do it wrong and die" is a more tempered philosophy.
But don't let the lack of competitive action lull you into complacency. Be watchful and consider all the alternativesfrom partnering to developing multitier models.
E-commerce is much more than just building a snazzy Web site. Despite your programming prowess—whether that's an ability to incorporate multimedia, offer realtime inventory tracking, or deliver subsecond response time—there's no promise that your company will be a success online.
Consider the about-face that budding Web merchant Levi's took between 1998 and 1999. At one point, as it was bootstrapping its Web-store site, Levi's asked Macy's to refrain from selling Levi's products on the Web.
