Commerce - has many meanings to describe commerce. It is a division of trade or production which deals with the exchange of goods and services from producer to end consumer. It comprises the trading of something economical value such as goods, services, information or money between two or more entities. Commerce functions as the central mechanism which drives capitalism and certain other economic system (but compare to command economy, for example). Commercialization consists of the process of transforming something into a product, service or activity which one may then use in commerce.
E-commerce has been part of our life when one is linked to Internet. E-commerce or E-business are important to everyone when it comes down to doing business or even shop or purchase through Internet by certain websites. Well, but does one know deep enough about what is E-commerce all about? Right here through our learning from our subject of E-commerce allows me to explain more on the progress of how E-commerce comes about.
What is E-commerce?
E-commerce, also known as electronic commerce that consists of the buying and selling of products or services over electronic systems such as Internet and other computer networks. The amount of trade conducted electronically has grown extraordinary with widespread Internet usage.
Electronic commerce is generally considered to be the sales aspect of e-business which consists of the exchange of data to facilitate the financing and payment aspects of the business transactions.
History of E-commerce
The history of e-commerce is a history of how Information Technology (IT) has transformed business processes into ‘a piece of cake’ for everyone who uses the Internet as their intermediaries for convenience in their daily life.
Through Internet (which played an important role in during the evolution) appeared in the late 1960s, e-commerce now took off with the arrival of the World Wide Web from 1990s onwards.
Originally, e-commerce were meant to be the facilitation of commercial transactions electronically using technology such as Electronic Funds Transfer (EFT) in the late 1970s and were then developed Electronic Data Interchange (EDI) for a changed of time. These allow businesses to send commercial documents for instance purchase orders or invoices through computer networks.
Interorganizational system (IOS) is a system which allows the flow of information to be automated between organizations in order to reach a desired supply-chain management system that enables the development of competitive organizations.
Large organizations have been investing in development of EDI since sixties. It has not gained reasonable acceptance until eighties. EDI has never reached the level of popularity of the web-based e-commerce for several reasons:
- High cost of EDI prohibited small businesses and medium-sized companies firm participating in the e-commerce
- Slow development of standards hindered the growth of EDI
- The complexity of developing EDI applications limited its adaptation to a narrow user base
The Internet was conceived in 1969 when the Advanced Research Projects Agency (Department of Defense organization) funded research of computer networking. The Internet could end up like EDI without the emergence of the World Wide Web in 1990s. The Web became a popular mainstream medium for everyone in a speed which had never been seen before. The Web users and its content were almost doubled every a couple of months in 1995 and 1996.
The Evolution of E-commerce
1984
EDI, or electronic data interchange, was standardized through ASC X12. 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 Secure Sockets Layer.
1995
Two of the biggest names in e-commerce are launched: Amazon.com and eBay.com.
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, online.
1999
Retail spending over the Internet reaches $20 billion, according to Business.com.
2000
The U.S government extended the moratorium on Internet taxes until at least 2005.
2002
eBay acquires PayPal for $1.5 billion. Niche retail companies CSN Stores and Netscape are founded with the concept of selling products through several targeted domains rather
2003
Amazon.com posts first yearly profit
2007
Business.com acquired by R.H. Donnelley for $345 million.
2008
US E-commerce and Online Retail sales projected to reach $204 billion an increase of 17% over 2007.
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