Online Retailers

Featuring a lively television campaign and a supposedly secure niche, Pets.com gave hope to other online retailers that they, too, could turn a profit. However, no one accounted for the expensive software programs, warehouse space, and customer service that have since contributed to the demise of Boo.com (a trendy fashion outlet), eToys, and PlanetRx.com, to name a high profile few. To put even more of a damper on things, in a recent study, only 34% of customers claimed that the Internet has made shopping more convenient.

Still, U.S.consumers purchased $3.6 billion in goods online in 2000, so worldwide figures are expected to keep rising. One of the most successful online retailers, Amazon.com, boasts 29 million customers and attributes its success not only to stocking an extensive array of books and music but also to branching out into the electronic entertainment realm. CDNow.com, another non-bricks-and-mortar operation, tells a similar story; though they focus exclusively on music, they also feed the music fan's hunger by providing related merchandise, such as posters and t-shirts, as well as links to All Music Guide, a compendium of artist bios and discographies.

Actual stores that have launched websites haven't done so poorly, either. JC Penny and Sears have both made smooth transitions from print catalogs to websites, upholding their high standards for both merchandise and customer service. Wal-Mart, too, has ventured online, although you wouldn't know it from visiting one of their jam-packed stores. And two of the most successful vendors overall, Dell and Apple, have gradually nudged out competition by guaranteeing superior technical assistance and allowing users to log on for software updates and user's manuals.