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A Jewelry Dot-Com Falls While Others Struggle Oct.2000

The jewelry "dot-com" sector just had another casualty.—which had raised over $50 million from venture capitalists, enabling it to purchase another web site,—recently said on its web site that it had ceased operations. It’s not the only site having problems. is still losing money and having problems with its stock price, and has reportedly had a few rounds of layoffs.

All this shows that neither customers or investors are willing to foot the bill for these sites’ promotions and advertising. Soon, they have to raise prices on the items. But if they are as expensive, then they lose a good part of their competitive advantage versus traditional retailers. This shows that the day of a "free ride" and discount prices in the dot-com sector are over. v


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