The History and Evolution of E-Commerce

Electronic Commerce (generally known as e-commerce) is the process of buying, selling, transferring, or exchanging products, services, and/or information through computer networks, including the Internet (Turban, 2008). E-commerce as a methods of organization, merchants, and consumer to cut cost and help to improve quality of goods and services. The amount of transaction has grown dramatically since the wide spread of Internet. E-commerce generally considered as sales aspects of e-business.

History and Evolution of E-commerce

Initially e-commerce meant the facilitation of commercial transactions electronically, using technologies such as Electronic Data Interchange (EDI) and Electronic Fund Transfe (EFT). Both of these technologies gave an opportunity for users to exchange information, conduct electronic transaction. In late 1970s, these technologies become more capable and businesses and organizations are able to send commercial documentation electronically, such as purchase order. In addition, credit cards, automated teller machine (ATM), and telephone banking are accepted as form of e-commerce in 1980s. Starting 1990s, Enterprise Resourse Planning (ERP), data mining, and warehousing are included as part of e-commerce.

In 1994, the use of Internet became popular in public, yet it still took about four years to develop the security protocols (such as HTTP) and Digital Subscriber Line (DSL). DSL allows rapid access and continual connection to the Internet. In the year of 2000, many companies and organizations in United States and Western have proposed their services through World Wide Web. The meaning of e-commerce changed and people began to define it as the process of purchasing goods and services through Internet using secure connections and electronic payment.

Timeline

Year	Event
1990	The first web browser-World Wide Web was developed by Tim Berners-Lee using a NeXT computer.
1992	26 accessible sites available in World Wide Web.
1993	First browser to support the display of images was released.
1994	World’s first search engine was launched. World’s first secure ecommerce transaction was reported to have occurred.
1995	First online affiliate program being launched. Dell and Cisco began use Internet for commercial transaction. Well-known E-commerce leaders, eBay.com and Am azon.com were introduced.
1998	PayPal was founded. My Simon, as the first comparison shopping site was launched. Goto.com introduced Pay Per Click Advertising.
2000	E-commerce collapsed and many e-commerce companies disappeared
2001	E-commerce re-grows and larger form of e-commerce, business-to-business has achieved about $700 billion in transactions.
2002	E-bay acquires PayPal for $1.5 billion
2003	Amazon.com post yearly profit
2007	R.H. Donnelly acquires Business.com for $345 million
2008	US ecommerce and Online Retail sales projected to reach $204 billion, an increase of 17 percent over 2000

There are number of payment methods introduced by e-commerce website, such as PayPal and credit cards. Thus, it ease Internet users to consume goods and services electronically, for examples, users can order groceries for home delivery, and order food as well through online. Users no longer use Internet for the purpose of looking for information; the usage of Internet has extended to allow users to shopping online without go shopping complex.

Related Sources:

Electronic commerce aka e-commerce history
Electronic commerce
History of Ecommerce
History and timeline of the World Wide Web's evolution