Friday, June 19, 2009

The History and Evolution of E-Commerce

What is E-commerce?

In this 21st century, one of the most popular activities to do through the internet is online shopping. Why it say so? This is because it is easy and convenient. You can shop anytime, anywhere that you want and u can also never have to change out of your pajamas if u don't want to do so. All of the product u can possibly imagine or can't imagine are available in the internet. So, this popular activities is called as Electronic Commerce.

Electronic commerce, commonly known as e-commerce, consists of the buying and selling of product and services over electronic system such as Internet and other computer networks
. For the broader definition, not just the buying and selling of goods and services, but also servicing customers, collaborating with business partners and conducting electronic transaction within an organization.

History of E-commerce

History of e-commerce dates back to the invention of very old notion of 'sell and buy', electricity, cables, computers, modems, and the internet. E-commerce became possible in year 1991 when the internet was opened to commercial use. Since that date, thousand of businesses have taken up residence at web sites.

Primarily, e-commerce meant the facilitation of commercial transactions electronically, using technology such as Electronic data Interchange (EDI) and Electronic Funds Transfer (EFT). Both of them were introduced in the late 1970s. It gave an opportunity for users to exchange business information and do electronic transactions. Besides that, it also allowed business companies and organizations to send commercial documents electronically. The growth and acceptance of credit cards, automated teller machines (ATM) and telephone banking in the 1980s were also forms of e-commerce.

Although the internet began popular among the worldwide in year 1994, it took approximately 5 years to develop the security protocols and DSL which allowed rapid access and connection to the internet. Since then people began to associate a word 'e-commerce' with the ability of purchasing various types of goods through the internet using secure protocols and electronic payment services.

Evolution of E-Commerce

Since 1995, many innovative applications ranging from direct online sales to e-learning experiences had been developed. Almost every existing organization in the world has their own website. The liberalization of the telecommunications sector and innovations such as optic fiber and DSL which has helped to expand the volume and capacity of communications that helped in the process of rapid growth. As a result, the barriers to entry and engage in e-commerce have fallen rapidly.

Here are the summary of years and trends for the evolution of e-commerce.....

* 1984- Electronic Data Interchange or EDI was standardized through ASCX12. This guaranteed that companies would be able to complete transactions with one another reliably.

* 1992- Compuserve offers online retail products to its customers. This gives people the first chance to buy things off their computer.

* 1994- Netscape arrived. Providing users a simple browser to surf the internet and a safe online transaction technology called as Secure Sockets Layer.

* 1995- Amazon and Ebay were the 1st international companies that implemented electronic transactions.

* 1998- DSL,or Digital Subscriber Line, provides fast, always-on internet service to subscribers across California. This prompts people to spend more time and money to online.

* 1999- Retail spending over the internet reaches $20billion according to the

* 2000- The US government exended the moratorium on internet taxes until at least 2005.

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