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An Example of An E-Commerce failures and its causes
 Kozmo.com was founded in 1997 by two young Wall Street professionals,Joseph Park and YongKang. Kozmo.com’s catalogue featured five main product categories which are entertainment, meals, grocery, drugstore and gift shop. In Kozmo.com, Snack Foods were undoubtedly their top seller. Later, when the company attempted to expand into sales of items such as video games and higher end electronics, they met with failure.There are 3 clauses of its failure:  1. Kosmo’s main failure is with their customers occurred when they stopped catering to their main client base of middle class college-students. Indeed, Kozmo is frantically trying to ditch its college-student customers, who last year made up 76% of its business, in pursuit of those who will pay a premium to have thousands of items, from DVD players to cotton swabs.2. Although Kozmo offered free delivery and charged competitive prices when it launched in New York. However the costs of delivery were still remain high.3. Some analysts say Kozmo's business model only made sense in the context of a densely packed city such as New York. Vern Keenan, financial analyst with Keenan Vision, said the service had a chance to work in only a few other cities around the world, such as London,Stockholm or Paris. This seemed like a dumb idea from the beginning,"Keenan said. "This grew out of a New York City frame of mind and it simply didn't translate.In conclusion, Kozmo.com was cool and convenient. Because we can order a wide variety of products, from movies to snack food, and get them delivered within an hour. It was the perfect antidote to a rainy night, but Kozmo learned too late that its primary attraction of free delivery was also its undoing. After expanding to seven cities, it was clear that it cost too much to deliver a DVD and a pack of gum.
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