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To: Skeeter Bug who wrote (107337)8/21/2000 12:53:41 AM
From: Glenn D. Rudolph  Respond to of 164684
 
good thing e-tailers don't carry inventory or this $39,000,000 might have been real. doh! it
was real! ;-)


One of the two largest advantages of a pure e-commerce play was the lack of a need to carry inventory. The customer could order a product and the etailer could obtain it quickly from the factory and ship it to the customer. In this way, there would be no inventory write downs, the company receives the customer's money before paying the vendor.

The other advantage was the lack of need for wharehouses and distribution centers to hold merchandise. That needs no explaining since the etailer does not inventory any merchandise.

It would appear that the business model failed in every way it was anticipated to succeed. It did not just partly fail. It receives an "F".