How the History of eCommerce Has Cleared the Way For Entrepreneurs

The history of eCommerce is not only interesting but has proven to be one of the greatest developments of humankind over time. eCommerce also known to as electronic commerce, can be used to refer to the act of conducting business transactions and communication over electronic device such as computers. It involves the buying and selling of goods and services over digital communication networks and encompasses electronic transactions such as smart cards and electronic money transfers.

There has been a lot of confusion regarding the difference between eCommerce and e business. To explain the difference between the two, one will need to look at the manner and location in which the business is conducted. E business involves the conducting of business over internet networks. It is purely an internet affair and encourages buying, selling and collaboration with partners online so that unlike eCommerce where the business is conducted at a specified location, e business is conducted online anywhere and anytime. This difference as we will see later has its bearing on the history of eCommerce.

The first form of eCommerce was conceived in the late 20th century when electronic technology was used for the transfer of information and for conducting business transaction between different business entities. The enabling technologies at the time were the electronic funds transfer and the electronic data interchange. Drawing from this part of the history of eCommerce, many businesses came up with ways through which they could expand their influence within the market and these efforts and innovation gave birth to what are now used as automatic teller machines (atm’s), credit cards and telephone banking systems.

A time went by and with the introduction of high-speed internet connections and relevant security mechanisms; the history of eCommerce was fast tracked for the business idea to become what is it is today. More businesses and especially those within the banking industry saw a lot of growth over short periods of time. However, the eCommerce businesses experienced their lowest points during the ‘dot-com’ collapse that saw a great number of internet businesses crumble to their knees.

Calm was restored a few years later when most of the businesses and especially those in europe began to embrace eCommerce. History was written once again when business transactions, driven by the desire to serve the increasing worldwide customer service demands and regardless of size and nature were conducted over the internet. The most remarkable companies during this time were amazon, eBay and dell that despite conducting small internet transactions have grown to become the most formidable electronic business entities in the history of eCommerce.

eCommerce has made life much easier than it was two centuries ago. It has taken into account how busy life has become so that not many people enjoy the luxury of shopping from one store to another without any time constraints. Buyers are now able to shop for whatever they want just by a click of a button. You are also able to compare prices of goods and services from stores worldwide but from the comfort of your home. Like all things good, eCommerce has enlightened most people on the importance of technology. It has also made it possible for businesses to appreciate just how much a simple invention can change the face of your business. Such is the history of eCommerce.

Key Milestones in the History of Ecommerce

The history of e commerce is nothing else but captivating. It is true that e commerce has come a long way and is unthinkable without the internet and the search engines. No wonder history of e commerce has gone through an interesting metamorphosis, from an unheard of entity in the ’70s’ to the booming multibillion-dollar enterprise it is today. It has come well in handy especially in assisting today’s tech savvy businessman/woman who wants to work from the comfort of home. The term ‘e commerce’ is coined from Electronic Data Transfer (EDT) and Electronic Funds Transfer (EFT), the then only forms of electronic transactions in the 1970s.

In 1982 and throughout the 1980s, several online market places were started. Websites were designed and hosted and there was an increased proliferation of credit cards, ATMs, and telephone banking services. All these marked a major milestone in the evolution of the history of e commerce. Used computer parts were advertised and sold through e commerce from places as far as the Boston computer exchange market, to other parts of the world.

Come the mid-nineties and this marked a key point in the history of e commerce as the technology exploded. This period saw the designing and hosting of the first static web page. This was a website that linked individuals, organizations, and even governments to the global online market that the economic world had started to evolve into. This was the turning point of the history of e commerce where, in hindsight, electronic transactions went past the point of no return since then. E commerce was giving other manual and cumbersome marketing initiatives a wide berth and they had no choice other than to bow out. With the turning of the millennium in early 200, simplistic e commerce websites were designed by the then major computer software manufacturers.

This, by far, eased the sale of their software, music and videos could be uploaded and downloaded by anyone who met the subscription criteria. The financial industry analysts called it the economical boom of all time. Internet use exploded and the world was turned into one global e-market. Services and products sales grew by the hour. People in developed countries quit going to work daily and started working from home. Since e commerce minted money by the hour, affluent households increased and thus increased the demand for expensive products and services to cater for the whims of the affluent.

Within duration of one year (2000-2001) sales from e commerce soared with the developed countries in the lead, from a paltry figure of tens of billions to over seven hundred billion US dollars worth of total sales from e commerce recorded. The net worth of the affluent households rose, jobs were created, and the whole global economy improved. Almost ten years later (2000-2009), e commerce is today virtually indispensable. Services and products have to be promoted through e commerce.

The health of the world economic giants and the economical pathfinders heavily rests on e commerce. Companies continue to post profit returns that are beyond any CEO’s wildest dreams. E commerce sales have continued to grow and today, they account for close to 5% of total sales, globally and this figure seems to be rising almost by the hour. Thanks to the history of e commerce, it is now the stress-free electronic transaction choice of all time and the global economy heavily depends on e commerce that is only a click of a button away and so user and consumer friendly.

The History Of Ecommerce

Putting your business online is the latest way for you to become successful. For the first time ever online sales over took those of the high street with total sales worth 31.5 Billion. So if you are not trying to take advantage of this then you are missing out on the chance of growth. By using the online community you can connect to over 2.3 billion people that are all willing to buy your products if you have what they want.

This is what ecommerce is all about. It is the buying and selling of products over the internet. The world’s first online shop was created in 1979 by Michael Aldrich and then 2 years later Thomson Holidays UK becomes the first Business-to-Business (B2B) online shopping company. These were the origins of ecommerce and people began trading over different networks as the internet had not been invented yet. In 1984 Tesco became the first Business-to-Customer (B2C) online and Mrs Snowball becomes the world’s first online home shopper. This is when ecommerce took off as people could now shop from home online if they had a computer although these were rare. Over the next few years businesses began using networks to their advantage and in 1990 the internet was invented by Tim Berners-Lee. It then took 2 years for the first graphical, fully iconic navigated online shop which was invented by Terry Brownlee. As years went by more online shops developed and different browsers developed which open different opportunities to people. In 1994 Pizza Hut began offering online ordering for its food and magazine companies began offering online subscriptions which became a huge success.

In 1995 a huge step was taken towards what we have today as CompuServe let WH Smith complete the first online secure transaction which was by Paul Stanfield who brought a book. Although this may not seem huge it enabled companies to begin making secure payments without the risk of fraud and losing out on money. As well as this CompuServe became the first national online shopping service for the UK and this service feature companies like WH Smith, Tesco and Virgin. As well as this in this year Amazon was launched as were the first 24 hour fully online radio stations which were called Radio HK and Net radio. Soon after this happen eBay was founded making 1995 a big year for the ecommerce that be now have today.

In 1998 PayPal was founded and from then secure transactions online become even more secure. This is still used today and is the biggest payment transaction website in the world. Electronic postage stamps became available during this year as well and with these you would just simply print them off and use them. Then in 1999 media sharing website Napster was launched and this was one the biggest innovations for online media ecommerce. 3 years after this eBay took a huge step in its future by acquiring PayPal for a reported $1.5 Billion and this began the link between the two services.

In 2003 Amazon recorded its first yearly profits and it was an example how the internet had finally become a source of profit for businesses. From here other businesses began to take note that they could become successful from using the internet. Internet sales for that year topped £30bn in the USA who were the main users of online shopping during that time.

Since then ecommerce has grown significantly and is the most important thing for many businesses. Ecommerce also enables anyone to start and run a successful business from their own home.