E-commerce vendors have spent a lot of money recently advertising on social networking sites, but these investments did not generate much of a return. "It does not make a lot of sense to promote your products to a MyFace Web site focused on a person's dog. After all, the dog is not going to buy any products," said Gene Alvarez, research vice president at Gartner.
About 50 percent of all new businesses survive for at least five years, according to estimates by the Small Business Administration. On the flip side, that means that half of all new ventures fail in that time frame. While the e-commerce market has been growing at a rapid clip, a number of companies have not been able to take advantage of this trend and found themselves in precarious positions for a variety of reasons this year.
The ripple effect from problems in the home mortgage market - which saw more than 200 companies go out business in 2007, according to the Mortgage Lender Implode-o-Meter - has impacted several online suppliers.
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