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Organizations rushed into establishing an online presence without really knowing what or how it would work.

Retail e-commerce is not simply a matter of having a site presence; it involves using the internet's unique attributes to provide better products and services to customers. To an e-commerce customer, value is imperative, and unlike brick-and-mortar customers, e-commerce customers have access to nearly "perfect" information about a product's quality and price. As a result, e-commerce retailing has become highly price competitive which has squeezed out marginal players.

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Q: 2 Why do you think there have been so many business failures among dot-com companies that were devoted only to retail e-commerce?
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