But nearly all online retailers are struggling to make money or keep investors interested in them so they can stay afloat. Experts say no online retailer has found the silver bullet to successful e-commerce. But there are a few that have innovative Web sites, strong customer service and good business plans. Other e-tailers are gasping for life. Several have watched their stock plummet significantly over the past year as investors, who eagerly threw money at dot-coms in 1999, grew tired of watching Web companies bleed red ink.
Analysts say investors are leery of purely e-commerce retail investments.
For instance, Lands' End, the clothing catalog retailer known for strong customer satisfaction, sees the value of online retail. Seema Williams, a senior analyst with Forrester Research Inc. in Cambridge, Mass., said the most successful e-tailers will be the ones that can integrate the Web site, stores, catalogs and any other channels for giving customers convenient and reliable shopping. Customers will expect the same service and inventory from each of the shopping avenues, she said. Retailers need to use each of those channels to create a seamless network where customers can buy items online, make returns at stores and call customer service representatives. For example, Victoria's Secret promotes its Web sites throughout its stores and catalogs.