Sep 25, 2019 in History

History of the Development of E-commerce


E-commerce is one of the most used words in the world today. It refers to the trading of goods and services over remote networks. The internet is the major tool that is used in these transactions. There are different technologies that are included in this online trading. First, commerce that is carried out, without the parties involved meeting personally is called mobile commerce. This technology has been, largely utilized in e-commerce. Advertising on the internet, as well as transfer of money using electric means are some other technologies that have been, largely utilized. Data collection, exchange and storage that is both automatic and electronic have been utilized too. All these are technologies that are subject to regular changes and developments. These changes translate to changes in e-commerce. These changes and developments have been, clearly, analyzed in the essay.

History of E commerce

E-commerce started to be used in the 70s. Electronic data exchange was the major invention that was made in this field in the 70s. However, it was towards the end of this decade that the first online shopping system was introduced by Michael Aldrich. This was the platform over which the whole issue is based. Before this, it was only the transfer of documents that was happening electronically. This invention showed people that they could trade without meeting each other. It showed people that the trading process could be as simple as they could ever imagine. Therefore, the next decade would be filled with numerous enhancements in the field.

By the beginning of the 80s, there were many inventions that were being prepared. First, Automated Teller Machines were introduced. As long as someone was near these machines, they did not have to be served by any customer care agents. This made the withdrawal of money for the use in business activities. Telephone banking was another invention that was made in the 80s. It also increased the accessibility of banking services to customers. It was in this decade that the procession of a credit card increased the closeness of business people to their money. The first shopping system between two businesses was developed in the early 80s. In 1982, ordering was also made to be through the internet. Therefore, companies could order for goods or services, remotely. This was first done in France. Online home shoppers were introduced in 1984 and electronic malls were opened up in some major cities. The establishment of online companies took their peak in the 90s. This was the period through which online markets were developed and enhanced to enhance the customer experience. For example, Alibaba group, in China, was established towards the end of this decade. It was, also, through this period that electronic documents could be downloaded and printed online.

The first web browser was introduced in 1990. This was a tool that was easily used to search for information on the internet. The connection of this introduction to e-commerce is one of the most obvious ones. Customers needed to find out about the online companies that were offering the trading services and options. This could not happen, unless there was easier ways for the consumers to access this information. This was made possible by the introduction of these browsers. After the introduction of credit cards, there had been no efforts to integrate this over the internet. In 1992, the processing of these cards was made possible on the internet. Shopping and buying was made easier than ever. Improvement of the browsers continued, which included the edition of features that made the customer experience easier. The Navigator browser was introduced in 1994. These were some of the browsers that ensured security of the transfers that were made online. The previous browsers were risky in the sense that they had not been encrypted for security. These advancements and improvements had to be effected.

Software also started to be traded. The first one was in 1994 by Ipswitch. There had been concerns on the security on the transactions over the net. This is because it was prone to a new style of crime, which was hard for the authorities to control. It could, also cause people to lose their money, in a bid to make their work easier. Therefore, it had been prohibited. The changes that occurred in the encryption to ensure that the system was secure caused the bans to be lifted. The US government did this in 1995. They realized that the advantages that could come from online trading were more than the disadvantages. This acceptance happened throughout the world and rapid and modern developments began on e-commerce. This was in preparation for future increase in general market demand for different products.

The introduction of a new century saw the dot com burst, which was followed by the rapid advancements that have come to define the current features in e-commerce. This was the time that people started viewing e-commerce differently. Before, the definition of e-commerce was commercial services that are carried out through electronic means. Some of these did not involve trade. For example, the use of ATMs was viewed as a part of e-commerce. People believed that any electronic process resulted to e-commerce. However, this was redefined in 2000. People had made discoveries and developed systems that deserved the name, “e-commerce”. They defined this as the online transfer of funds, as well as goods and services in return. In short, trading over the internet became the new definition of e-commerce. With this mentioned, it is obvious, that the changes that occurred in the internet would, definitely affect e-commerce.


By the end of the next year, the transactions that had been done over the net were worth about 700 billion dollars. is one of the most admired and coveted websites in the world today. This is due to the market share that it commands. It was during this year that it made its first profits. At this time, acquiring the computers and internet over which information can be transferred was not easy. Therefore, it was hard to reach the most people who were considered to be potential customers. However, there were companies that were willing to take the risk. At this time, the changes were occurring so fast, although most companies feared the unknown. was able to make its first profit through online selling of their products. This proved that e-commerce was possible for many companies. As they would discover later, this was the future of business in the world. They just had to adapt to the changes in their environment and they were bound to succeed.

The first companies to create a provision and platform over which funds could be transferred over the internet were e-Bay and Amazon. It was in 2003, that these two recorded profits and proved to the world that e-commerce was effective. There was a company called PayPal, which had been developed to transfer funds online. The success that was experienced by e-Bay allowed them to buy PayPal. For some time, these two were the giants in retail. With pother companies depending on local customers, as well as those from neighboring countries, e-bay and Amazon had customers from all over the world. They did not have to worry about their advertising tactics. As people continued to acquire personal computers, and internet connection, they continued to know more about these two companies. This ensured that their sales stayed high. They were able to make more sales than any other companies in the world were capable of. This caused them to have the vigor to try and develop their systems and make them better.

By 2004, online transactions had increased to levels that could not be controlled. Although there were a few large companies, there were many others that came on to ensure that they took part in this great invention. China was the other country that had taken to online trading. They struggled to keep up with the US, who seemed to be setting the trends in the whole world. This adoption of e-commerce and the techniques associated has seen China develop faster than its competitors. In the world today, it is clear that China has won the battle on the marketing of their products. This is because their products are found all around the world. At the moment, they have the second largest economy, a factor to which e-commerce can be attributed. By 2007, countries like India started establishing online companies. Apart from websites to carry out the transactions, there were others that started being introduced. These were ones that were, specifically, meant for the advertising and rapid marketing of the products of other companies. This was where online marketing was also included in e-commerce. Companies used to pay these advertising agencies for the sake of the marketing of their goods. This proved to people that services could, also, be sold online.

By 2008, there were many nations that had adopted e-commerce. South Korea, North America, China, Western Europe, India and North America were among some of the regions that had adopted the innovation. The single company that can be used to define this period, due to the success that it had achieved was Amazon. This is because it was a company that had put in many, resources, in terms of funds and time in the development of their systems. The massive profit margins they were receiving allowed them to better their systems every day. They came up with a marketing program, instead of hiring an advertising agency. By this time, Amazon was more famous than most of the other businesses, such as Dell. Therefore, they had been, well-advertised. The need to conduct rapid marketing came later, when the competition from other companies increased. Some of these competing companies included e-Bay, Dell and Acer. Amazon started with the sale of books. However, they came to sell other products and diversify their activities. This allowed them to have funds with which they could venture into other industries, such as the film industry.

Since this time, the evolution that was observed in e-commerce was based on the needs and advantages to the consumers. All the enhancements were made to ensure that the satisfaction of customers was enhanced and made easier. The companies that were trading their products online became extremely valuable. Some of the goods that were being traded were consumer electronics, books and others. The biggest IPO by the beginning of 2010 had been carried out by Google. After some time, Google decided to give a good offer to one of the companies utilizing e-commerce, Groupon, an endeavor that was bound to fail. This company turned down an offer that was worth 6billion dollars. After this rejection, the company conducted the largest IPO, which surpassed that by Google. This shows the value that had been placed in these companies that were trading online. accepted an offer by for about 500million dollars. This happened in 2011, a period that saw numerous companies started, and others acquired. The sales grew every year and more people continued to use the internet. recorded the highest IPO in 2014, one that has not been surpassed to date. This is proof that online trading has taken over business. Businesses that realize the best profits use the enhancements made by e-commerce.


From the essay above, it is clear that there have been many changes and developments on e-commerce. Just like most of the activities that depend on the internet develop and change, e-commerce is subject to many changes. The limits to which people can be creative are extremely wide. This ensures that it is perfectly and constantly dynamic. From the analyses that have been offered, it is clear that there are lots of changes that should be expected in the future. This is because they have never stopped, from the time they started. Therefore, companies and organizations should strive to ensure that they always anticipate future changes in e-commerce. This way, they will not become obsolete. There are many companies that have lost their competitiveness, as a result of failure to adapt to the above mentioned changes in the development of e-commerce. Therefore, the importance of such an analysis cannot be exaggerated.


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