The dot-com fairy tale turned into a macabre farce this year as one e-commerce company after another flopped and business bystanders clucked about the stupidity of it all.
But it wasn’t so long ago that plenty of smart people thought selling dog food, plush sofas and barbecue grills over the Internet were good ideas.
Today’s prevailing consensus about the absurdity of these e-commerce concepts illustrates how much the dot-com landscape has changed in the past 12 months. The Young Turks of the New Economy, once hailed as inspired visionaries, now widely are derided as shortsighted buffoons.
“There always have been dumb ideas in business, but you don’t usually see so many of them at one time,” said Philip Kaplan, who runs a Web site with a profane name that features a satirical dot-com dead pool for Internet failures.
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Marc Benioff, a former Oracle Corp. executive who is chairman of San Francisco-based Salesforce.com, said he couldn’t believe some of the business decisions made at other dot-com companies during the year.
“A lot of these guys were writing Harvard Business School case studies, but they weren’t writing them on how to build a business,” Benioff said. “They were writing them on how to torch a business.”
Amid all the dot-com detritus, a few clever — and even potentially revolutionary — ideas emerged during 2000, too.
Here, then, is a look at some of the year’s dot-com duds and delights:
Not Ready for Prime Time
Super Bowl XXXIV was billed as a coming-out party for the 13 dot-com companies that shelled out an average of $2.2 million for 30-second commercials aired during the game.
The ads were plenty slick, but they didn’t accomplish much — they mostly attracted customers who discovered that the featured sites were more about style than substance.
“A lot of these companies forgot that good advertising only makes a bad product fail faster,” said Clark Wood, vice president of marketing for AutoTrader.com, one of the few e-commerce Super Bowl advertisers that didn’t regret spending all that money.
At least two of the Super Bowl dot-com advertisers — Pets.com and Epidemic.com — have since closed their doors and several others are struggling to survive.
Stupid Pet Tricks
Online pet stores seemed to multiply faster than rabbits until fickle financial markets performed their form of euthanasia.
When the year began, there were five major online pet e-tailers — Pets.com, Petstore.com, Petopia.com, Petsmart.com and PetPlanet.com. Together, they raised roughly $400 million from venture capitalists and the stock market.
As the year ends, just two of the original five, Petopia.com and Petsmart.com, are still peddling dog food over the Internet.
If it weren’t for all those stupid pet tricks, online furniture stores might have been e-tailing’s biggest debacle of the year.
As it was, three high-profile furniture e-tailers — UrbanDesign.com, Living.com and Furniture.com — wound up taking a bench seat this year. Turns out most people want to sit on a sofa or recliner before they buy it. And apparently someone forgot shipping all that heavy stuff to people’s homes costs a whole lot of money.
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