Pets.com had created an electronic commerce initiative in an industry in which online business offered few advantages over traditional commerce. The products had a very low value-to-weight ratio. The shipping costs for pet food, one of the company's best-selling product categories, caused it to lose money on every sale. Pet products come in all shapes, sizes, and weights, and are, therefore, difficult to pack and ship efficiently. Pets.com was also spending money rapidly at a time when investors were beginning to question the long-run viability of all electronic commerce businesses. The lesson here is that Pets.com could not develop any sustainable advantage over traditional pet stores. Without such an advantage, the business was doomed.