.commers

[Swamper]

BTW, Amazon posted their first profit in the 4th quarter

http://money.cnn.com/2002/01/22/technology/amazon/

...but they're still 2+ billion in debt.

Best example of a successful .com is eBay - although their success may end up being their own demise. With the increasing availability of products that were once hard to find (i.e. old transformers) they are reducing both the cost of such items and people's overall desire to 'collect' certain items today. The reasoning is that you'll always be able to find someone selling that item someday on eBay - but then that reduces the # of those items available, and so downturn begins - hope I'm wrong.

 

[Gizmo]

They're also getting competition from Yahoo, who are trying to add a large bid / auction section to their portal. They're hoping the revenues generated from this will offset their falling web advertising revenues.

 

[teknikal]

From what I know, there are basically 2 reasons.

1) Like everybody has stated, people just jumped onto the band wagon and tried to get in on this growing trend. It's so easy to set up a site on the internet and access people from around the world, that alot of the dot commers forgot that it is essentially running a business in a different medium, and they forgot about the business side of things. Like how to run a business efficiently and productively.

2) Since everybody jumped on the bandwagon, the market become oversaturated, and supply definately was not equal to demand; it was in surplus.

That's about it.

teknikal

p.s. - wow, i think this is my first post that's more than two sentences

 

[nusty]

Originally posted by Mr_Furious
.com's are businesses based solely on the internet

i.e. Amazon.com. They don't have an office, or a warehouse, its just basically a middle man who purchases books from wholesalers and then distributes them to you (the consumer)

Actually amazon.com does have both offices and wharehouses.

I know for a fact on exit 27 on the new jersey turnpike they have a wharehouse that could fit most universities inside of it! (its their main east coast building)

 

[kerouacdude]

Originally posted by MalGlo
cnn.com is starting to charge fee's for some of their services

Salon.com and any marketing/advertising mag's websites do too. And Izzy Asper has gone on record saying some kind of fee structure's down the pike for the CanWest/Southam websites.

Being able to read the better part of a magazine or newspaper online for free will become less and less common.

 

[Guest]

I run a dot com with my two partners. We've been at it since January, and while its quite the challenge (because we sell high-value E-Newsletter solutions) we're making some positive headway. We just incorporated a few weeks ago, so we're a bona fide company now.

I'm always interested in hearing what people think about our site and services. Click here to have a look.

 

[Michkey]

From a corporate point of view, selling merchandise via a website is awesome because it translates to an assload of profit.

When you sell goods at Wal-Mart, Zellers, Sears, wherever the eff, they take 12-18% right off the top for 'discounts' (aka the cost of doing business with them). Plus they want to make 40-47% profit (in my commodities anyway, sometimes less).

Translation: an item that has a $100 price tag cost Wal-Mart $43. My profit would be about $8, theres $57. This is oversimplifying, but you get the idea.

If I sell it through a website my profit would be $65. Bigggg difference.

This is why .coms looked so hot to so many companies initially. Now that the market has 'corrected', things should look up.

(I don't think I have ever purchased anything online other than through eBay.)

 

[OTIS]

Originally posted by Tearer
I run a dot com with my two partners. We've been at it since January, and while its quite the challenge (because we sell high-value E-Newsletter solutions) we're making some positive headway. We just incorporated a few weeks ago, so we're a bona fide company now.

I'm always interested in hearing what people think about our site and services. Click here to have a look.

D.R.I. YES!!!

*moshes*

 

[H2Whoa]

http://techupdate.zdnet.com/techupdate/stories/main/0,14179,2861123,00.html

 

[SENSEi]

Step 1: Come up with an idea
Step 2: Sell your idea to investors (we talking in the millions)
Step 3: IPO, Go public claiming 50 million + in capital
Step 4: Watch stocks sore
Step 5: Watch stocks fall
Step 6: Investors pull out
Step 7: Bankruptcy

You don't have to sell anything..

It's like R & D
You spend a lot of money now to make piles of money later...

There is a great documentary out right now called startup.com

Here is what's left of there site.

http://www.govworks.com/index2.htm


It will give you some great insite into the dot com craze of the mid late 90's.

SENSEi