Boost the utilization of your HCL environment by reevaluating use cases and f...
Why e-commerce companies die
1. HOW 20 FAST GROWING
E-STORES FAILED
Learning from e-commerce failures
https://business.trybeans.com
2. Raised $65 million
Based in Los Angeles
2006-2016Nasty Gal
Retention Issues
Vintage fashion for women
Fashion
Fastest growing online retailer in 2012
No Product Market Fit Poor Management
3. Raised $330 million
Based in New York
2011-2014Fab.com
Retention Issues
Daily design inspirations
Household items
Invested all its resource on unsustainable
acquisition
No Product Market Fit Poor Management
4. Raised $20 million
Based in San Francisco
2013-2016Dot & Bo
Retention Issues
Designer home furnishings
Household items
Customers complained of a bad quality
No Product Market Fit Poor Management
5. Raised $180 million
Based in San Francisco
1999-2000Pets.com
Retention Issues
Pet supplies e-retailer
Pets
Sold products at a loss as an acquisition tool
No Product Market Fit Poor Management
6. Raised $650 million
Based in Atlanta
1999-2001Webvan
Retention Issues
On-demand grocery delivery
Delivery
Sold an upmarket product at mass market
price
No Product Market Fit Poor Management
7. Raised $166 million
Based in Los Angeles
1997-2001eToys.com
Retention Issues
Selling toys online
Toys
CAC was higher than CLV
No Product Market Fit Poor Management
8. Raised $97 million
Based in Berlin, Germany
2012-2017Auctionata
Retention Issues
Auction for Antiques and Arts
Auction house
The company was accused of fraud
No Product Market Fit Poor Management
9. Raised $52 million
Based in Toronto
2012-2016SHOP.cA
Canadian Amazon
General Goods
CLV did not match expectation
Retention Issues No Product Market Fit Poor Management
10. Raised $95 million
Based in Montreal
2009-2016Beyond the
Rack
(BTR)
Retention Issues
Canadian Amazon
Fashion
Unable to get customers to come back
No Product Market Fit Poor Management
11. Raised $52 million
Based in New Delhi, India
2014-2016PepperTap
On-demand grocery delivery
Delivery
Sold an upmarket product at mass market
price
Retention Issues No Product Market Fit Poor Management
12. Raised $45 million
Based in Vancouver, Canada
1996-2017Shoes.com
Shoes and accessories
Fashion
They became infamous for poor service and
botched orders
Retention Issues No Product Market Fit Poor Management
13. Raised $52 million
Based in New York
2010-2016Choxi.com
Online discount store
General Store
Unhappy customers created an Facebook
complaints page
Retention Issues No Product Market Fit Poor Management
14. Raised $135 million
Based in London, U.K.
1998-2000Boo.com
Online fashion retailer
Fashion
Scaled to 400 employees before launching
their store
Retention Issues No Product Market Fit Poor Management
15. Raised $27 million
Based in Wisconsin, USA
1998-2000Alice.com
Amazon with a twist
General Store
They charged manufacturers for carrying their
goods
Retention Issues No Product Market Fit Poor Management
16. Raised $15 million
Based in San Francisco
2013-2017Lily
Robotics
Autonomous drones
Drones
Was not able to ship a working product
Retention Issues No Product Market Fit Poor Management
17. Raised $54 million
Based in New York
2008-2017Jackthreads
Smart everyday style for
men
Fashion
Had very low retention rate
Retention Issues No Product Market Fit Poor Management
18. Raised $54 million
Based in New York
2009-2016One Kings
Lane
Luxury home decor
Household furnishing
Bad retention on their targeted market
Retention Issues No Product Market Fit Poor Management
19. Raised $12 million
Based in Spokane, Washington
2008-2013Ecomom
Baby Apparel
Mother and Child
Goods
Acquisition cost was higher than CLV
Retention Issues No Product Market Fit Poor Management
20. Raised $286 million
Based in New York
2007-2016Gilt
Luxury shopping and lifestyle
Fashion
Failed to retain customers while scaling
Retention Issues No Product Market Fit Poor Management