Hamstrung at Handspring

The varnish has warn off the wunderkind of the handheld market as the company fails to deliver initial shipments in what appears to be a case study in e-commerce pitfalls. By Chris Oakes.

The springs and sprockets at Handspring's Web store are showing.

Plagued by problems since launching its online store recently, Handspring has become a virtual case study in how not to conduct e-commerce. Frustrated users appear to be giving up on their plans to order Visors, according the founder of a popular online forum for customers.

"Some have said it's like waiting for Christmas, but you know it's never coming," said Richard Kettner, the founder of a Yahoo message board focused on the Handspring Visor. But Kettner also noted that the few forum members who have actually received units are "ecstatic."

Meanwhile, the company has set up a Web page to explain the various problems the company has had in filling both electronic and telephone orders. There's quite an assortment, from duplicate orders and double credit-card billing to charging too much sales tax and being unable to handle the demand for under-supplied colors.

One of the biggest problems involves screw-ups in the online ordering process, which Handspring blamed on "some systemss problems." The company said that while most orders were not affected, those that were might contain several types of errors.

Even Handspring executives are not immune from the site's e-commerce breakdown. During a keynote at the CTIA's Wireless IT 99 conference Wednesday, company co-founder Jeff Hawkins said he ordered computers for his daughters from the Web site but they still hadn't arrived. "I ordered them just like everyone else," he said.

Hawkins said Handspring was swamped with orders almost immediately, which caused the Web site to crash. When it did, the company was forced to set up a phone order center. Despite having 40 operators, calls still took up to two hours to be answered, he said.

Tom Wheeler, CTIA's CEO and president, got a laugh when he told the audience that he'd tried to get his hands on a Visor during a visit to Handspring's office last week, but was gently told by Hawkins that he'd have to order it on the Web.

Kettner said the reaction of frustrated users varies, but for the most part customers have given up. He also said he has received at least 60 emails from users looking for updates on the problems.

Handspring's site also admitted that several customers using credit cards were charged more than twice the actual cost of a purchase.

"We have identified all of these orders, and have credited the additional unit on all customers' credit cards," the company said. "Customers affected will be receiving a letter shortly with instructions as to how to return the extra unit(s) to us."

Customers who were accidentally sent two orders instead of one will be given the option of keeping, "and paying for," the extra unit, the company said.

Kettner said he owns a 3Com Palm V PalmPilot and was considering the cheaper Handspring Visor until the snafus scotched his plans. "I would have bought one," he said, "had I known there would have been faster service."

Wired News reporter Leander Kahney contributed to this report.