As our economy evolves, new means of conducting and creating business are being explored. The newest discovery, e-commerce, has given the world the ability to conduct business over the internet. E-Commerce, or Electronic Commerce, is a general term for any type of business, or commercial transaction, that involves the transfer of information across the Internet. This covers a range of different types of businesses, from consumer-based retail sites like Amazon.com which is an online book store, through auction and music sites like eBay or MP3.com, to business exchanges trading goods or services between corporations. After several companies failing to profit within e-commerce due to overspending, lack of volume and poor planning the e-business world began to develop day by day. Many success factors which include market planning, no overspending, and grabbing the attention of the venture capitalists are needed to preserve and make the e-business a dominant force in a new era of business.Even though e-commerce is considered the next step in the evolution of commerce, there is reason for cynicism. Rather than hearing success stories from the sector, layoffs, mergers and company failures have been the current trend. Currently e-commerce companies are closing at the rate of one company per day (Bloomberg Magazine). There are only a handful of companies that are showing growth, and even fewer that are producing profits. Less than 20% of Canadians who use the internet have purchased products using e-commerce (Globe and Mail : Report on E-business). What is even more unsettling is the inability to conserve customers who have used e-commerce. Current trends indicate that there is no need or room for the success of e-commerce within the already cramped world of cyberspace.The current saying within the e-commerce world as of late is, "too much, too soon." After many heavily capitalized companies went bankrupt lessons have been learned. Initially, the main focus for e-commerce companies was to get big, and to do it fast. As a result of this philosophy, the quality of e-commerce companies suffered. . Companies such as Boo.com an online clothing retailer failed. Boo.com, rather than focusing on steps that would make them a strong company, the company focused on advertising and overall marketing hype. This led to a large group of dissatisfied customers. As time evolves this new idea of E-business, companies are beginning to create strategic market planning and therefore beginning to see profits.The original ideology of e-commerce companies was growth at any cost. This mentality quickly changed after the failures of such companies as Boo.com. Boo.com spent an average of $1,000,000 a week (The Advertising Age Magazine). This totals to over $135 million since the companies inception (The Advertising Age Magazine). Boo.com translated heavy spending on advertising, into high sales volumes. By the time the company came to the revelation that heavy spending did...
