E-COMMERCE: The History and Evolution of E-commerce

E-commerce is the acronym that stands for Electronic-Commerce. The term E-Commerce had been created in early 1990s when the internet became more commercialized and more users were involving in World Wide Web. According to the history of E-commerce, the term e-commerce refers to the process of execution of commercial transactions electronically with the help of the leading technologies. Such technologies are electronic data interchange (EDI) and electronic Funds Transfer (EFT) which was created in the late 1960s to enable the information exchange and business transaction to be done electronically. EDI permits electronically transfer of routine documents, while EFT allows the funds to be routed electronically from one area to another area. With the existence of EDI and EFT, E-Commerce applications were developed in the early 1970s.

In 1979, the concept of online shopping was introduced by UK based on Michael Aldrich. However, some problem arose such as growing of unauthorized hacking. Subsequently, invention of credit cards, automated teller machines and telephonic banking had indirectly brought in ideas to company to improve the E-Commerce. In addition, the development of Digital Subscriber Line (DSL) was further encouraging the development of E-commerce. DSL allowed users to access to the internet more efficient and persistent. Furthermore, the implementation of Web 2.0 also contributes to the evolution of the E-Commerce. The term “Web 2.0” was created by O’Reilly Media in 2004. Sometime, it is called “read-write” web. According to Wikipedia, Web 2.0 is refers to a perceived second generation of web development and web design, that facilitates communication, secures information sharing, interoperability, user-centered design and collaboration on the World Wide Web. Those internet-based services can be done through social networking sites, wikis, communication tools and folk-sonomies. For example, Web 2.0 allows users to retrieve information, upload and share photos.

In 1995, Amazon.com and eBay.com had been launched. They were the first and biggest E-Commerce which enables electronic transaction during that period. Currently, there are five largest and famous worldwide E-Commerce retailers; they are Amazon, Dell, Staples, Office Depot and Hewlett Packard. Generally, most of the E-commerce companies are selling music, books, computers and other electronics through internet.

E-Commerce activities will grow in the future as users find it convenient to purchase items through internet without physically travel to the shops.

Generally, the history and evolution of E-Commerce can be summarized as follow: