What is E commerce
E-commerce is a transaction of buying or selling online. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange(EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction’s life cycle although it may also use other technologies such as e-mail. Typical e-commerce transactions include the purchase of online books (such as Amazon) and music purchases (music download in the form of digital distribution such as iTunes Store), and to a less extent, customized/personalized online liquor store inventory services.
The beginnings of e-commerce can be traced to the 1960s, when businesses started using Electronic Data Interchange (EDI) to share business documents with other companies. In 1979, the American National Standards Institute developed ASC X12 as a universal standard for businesses to share documents through electronic networks. After the number of individual users sharing electronic documents with each other grew in the 1980s, in the 1990s the rise of eBay and
E-commerce businesses may also employ some or all of the followings:
- Online shoppingweb sites for retail sales direct to consumers
- Providing or participating in online marketplaces, which process third-party business-to-consumer or consumer-to-consumer sales
- Business-to-businessbuying and selling;
- Gathering and using demographic data through web contacts and social media
- Business-to-business (B2B) electronic data interchange
- Marketing to prospective and established customers by e-mail or fax (for example, with newsletters)
- Engaging in pretailfor launching new products and services
- Online financial exchanges for currency exchanges or trading purposes.
The development of e-commerce:
- 1971 or 1972: The ARPANETis used to arrange a cannabis sale between students at the Stanford Artificial Intelligence Laboratory and the Massachusetts Institute of Technology, later described as “the seminal act of e-commerce” in John Markoff’s book What the Dormouse Said.
- 1979: Michael Aldrichdemonstrates the first online shopping
- 1981: Thomson Holidays UK is the first business-to-business online shopping system to be installed.
- 1982: Minitelwas introduced nationwide in France by France Télécom and used for online ordering.
- 1983: California State Assemblyholds first hearing on “electronic commerce” in Volcano, California. Testifying are CPUC, MCI Mail, Prodigy, CompuServe, Volcano Telephone, and Pacific Telesis. (Not permitted to testify is Quantum Technology, later to become AOL.)
- 1984: GatesheadSIS/Tesco is first B2C online shopping system and Mrs Snowball, 72, is the first online home shoppe
- 1984: In April 1984, CompuServelaunches the Electronic Mall in the USA and Canada. It is the first comprehensive electronic commerce service.
- 1989: In May 1989, Sequoia Data Corp. Introduced Compumarket The first internet based system for e-commerce. Sellers and buyers could post items for sale and buyers could search the database and make purchases with a credit card.
- 1990: Tim Berners-Leewrites the first web browser, WorldWideWeb, using a NeXT
- 1992: Book Stacks Unlimitedin Cleveland opens a commercial sales website (www.books.com) selling books online with credit card processing.
- 1993: Paget Press releases edition No. 3 of the first app store, The Electronic AppWrapper
- 1994: Netscapereleases the Navigator browser in October under the code name Mozilla. Netscape0 is introduced in late 1994 with SSL encryption that made transactions secure.
- 1994: Ipswitch IMail Serverbecomes the first software available online for sale and immediate download via a partnership between Ipswitch, Inc. and OpenMarket.
- 1994: “Ten Summoner’s Tales” by Sting becomes the first secure online purchase through NetMarket.
- 1995: The US National Science Foundationlifts its former strict prohibition of commercial enterprise on the Internet.
- 1995: Thursday 27 April 1995, the purchase of a book by Paul Stanfield, Product Manager for CompuServeUK, from W H Smith’s shop within CompuServe’s UK Shopping Centre is the UK’s first national online shopping service secure transaction. The shopping service at launch featured W H Smith, Tesco, Virgin Megastores/Our Price, Great Universal Stores (GUS), Interflora, Dixons Retail, Past Times, PC World (retailer) and Innovations.
- 1995: Jeff Bezoslaunches com and the first commercial-free 24-hour, internet-only radio stations, Radio HK and NetRadio start broadcasting. eBay is founded by computer programmer Pierre Omidyar as AuctionWeb.
- 1996: IndiaMARTB2B marketplace established in India.
- 1996: ECPlazaB2B marketplace established in Korea.
- 1996: The use of Excalibur BBSwith replicated “Storefronts” was an early implementation of electronic commerce started by a group of SysOps in Australia and replicated to global partner sites.
- 1998: Electronic postal stampscan be purchased and downloaded for printing from the Web.
- 1999: Alibaba Groupis established in China. com sold for US $7.5 million to eCompanies, which was purchased in 1997 for US $149,000. The peer-to-peer filesharing software Napster launches. ATG Stores launches to sell decorative items for the home online.
- 1999: Global e-commerce reaches $150 billion
- 2000: Complete Idiot’s Guide to e-commerce released on Amazon
- 2000: The dot-com bust.
- 2001: comachieved profitability in December 2001.
- 2002: eBayacquires PayPal for $1.5 billion. Niche retail companies Wayfair and NetShops are founded with the concept of selling products through several targeted domains, rather than a central portal.
- 2003: composts first yearly profit.
- 2003: BossgooB2B marketplace established in China.
- 2004: com, China’s first online b2b transaction platform, is established, forcing other b2b sites to move away from the “yellow pages” model.
- 2007: comacquired by R.H. Donnelley for $345 million.
- 2009: comacquired by Amazon.com for $928 million. Retail Convergence, operator of private sale website RueLaLa.com, acquired by GSI Commerce for $180 million, plus up to $170 million in earn-out payments based on performance through 2012.
- 2010: Grouponreportedly rejects a $6 billion offer from Google. Instead, the group buying websites went ahead with an IPO on 4 November 2011. It was the largest IPO since Google.
- 2012: Zalora Groupwas founded and started operations around Asia.
- 2014: comprocesses over $1 million in Bitcoin sales. India’s e-commerce industry is estimated to have grown more than 30% from 2012 to $12.6 billion in 2013.]US e-commerce and Online Retail sales projected to reach $294 billion, an increase of 12 percent over 2013 and 9% of all retail sales. Alibaba Group has the largest Initial public offering ever, worth $25 billion.
- 2015: comaccounts for more than half of all e-commerce growth, selling almost 500 Million SKU’s in the US.
- 2016: comaided more than 10,000 sellers to generate more than $1 million of annual sales .
- 2016: Walmartbuys com for $3.3 billion
- 2017: On march Amazon.com acquired comthe bigest e-commerce website in Middle East ( Egypt, KSA and UAE).
E-commerce is conducted using a variety of applications, such as email, online catalogs and shopping carts, EDI, File Transfer Protocol, and web services. This includes business-to-business activities and outreach such as using email for unsolicited ads (usually viewed as spam) to consumers and other business prospects, as well as to send out e-newsletters to subscribers. More companies now try to entice consumers directly online, using tools such as digital coupons, social media marketing and targeted advertisements.
The benefits of e-commerce include its around-the-clock availability, the speed of access, the wide availability of goods and services for the consumer, easy accessibility, and international reach. Its perceived downsides include sometimes-limited customer service, consumers not being able to see or touch a product prior to purchase, and the necessitated wait time for product shipping.