Journey 1 – Strategic Challenges of e-Commerce 1. Real-World Example of an e-Commerce Strategic Challenge One of the biggest strategic challenges in today’s e-Commerce world is Demand Risk. A strong real-world example of this is what happened to Pelot

### Strategic Challenges of e-Commerce One of the most prominent strategic challenges facing e-Commerce businesses today is Demand Risk. A compelling real-world illustration of this can be seen with Peloton during and after the COVID-19 pandemic. In 2020, there was an unprecedented surge in demand for at-home fitness equipment, fueled by gym closures and stay-at-home orders. Peloton struggled to produce bikes quickly enough to meet this explosive demand. However, as society transitioned back to normality, the demand for Peloton's products plummeted. The aftermath left the company grappling with excess inventory, costly supply chain contracts, and a significant decline in revenue. This case exemplifies Demand Risk—the danger that customer demand will shift more rapidly than a business can respond. Peloton's experience highlights the critical lesson that dependence on unpredictable spikes in demand can result in severe financial repercussions if that demand suddenly diminishes. A strong career choice in the e-Commerce industry is that of an E-Commerce Product Manager. This role is vital for enhancing online shopping experiences through the management of digital product launches, customer behavior analysis, and the coordination of diverse teams aimed at delivering improved e-Commerce features. E-Commerce Product Managers function as the key connection between technology, marketing, and user experience. According to recent salary data, E-Commerce Product Managers earn between $95,000 and $135,000 annually, contingent on company size and individual experience. This position is particularly promising, as businesses are increasingly reliant on digital platforms, especially as a growing number of companies pivot from physical storefronts to online sales. A specific product I plan to purchase in the future is a pair of running shoes. Buying shoes online can pose risks due to variations in sizing and fit across brands, often leading to discomfort. This might create both demand risk and inefficiency risk for companies, as high return rates from customers can be costly. An Internet solution that effectively addresses this challenge is virtual sizing technology. Many companies, including Nike and Adidas, now utilize mobile applications that scan customers' feet to recommend the ideal size for each specific shoe model. This innovation not only reduces return rates but also enhances customer confidence in their purchases, while equipping companies with better insights into consumer preferences. By leveraging AI-driven size recommendations, e-Commerce businesses can mitigate inefficiency risk and provide a more seamless shopping experience. Overall, the evolving landscape of e-Commerce presents both significant challenges and exciting opportunities. As companies navigate these hurdles, innovative solutions and strategic roles will continue to emerge, reshaping how consumers interact with online retail.