Chapter – 1

Introduction to
e-commerce
 Background of
e-commerce

History of ecommerce
E-commerce actually goes back to the 1960s when companies used an
electronic system called the Electronic Data Interchange to facilitate the
transfer of documents. It wasn't until 1994 that the very first transaction.
took place. This involved the sale of a CD between friends through an
online retail website called NetMarket.

The industry has gone through so many changes since then, resulting in
a great deal of evolution. Traditional brick-and-mortar retailers were
forced to embrace new technology in order to stay afloat as companies
like Alibaba, Amazon, eBay, and Etsy became household names. These
companies created a virtual marketplace for goods and services that
consumers can easily access.

New technology continues to make it easier for people to do their online

shopping. People can connect with businesses through smartphones and
other devices and by downloading apps to make purchases. The
introduction of free shipping, which reduces costs for consumers, has
also helped increase the popularity of the e-commerce industry.

E-commerce was introduced about 40 years ago in its earliest form.

 Since then, electronic commerce has helped countless businesses grow
with the help of new technologies, improvements in internet
connectivity, added security with payment gateways, and widespread
consumer and business adoption. With the wide adoption of the Internet
and the introduction of the World Wide Web in 1991 and of the first
browser for accessing it in 1993, most e-commerce shifted to the
Internet.

More recently, with the global spread of smartphones and the

accessibility of fast broadband connections to the Internet, much e-
commerce moved to mobile devices, which also included tablets,
laptops, and wearable products such as watches.

Ecommerce has come a long way since the CompuServe launch in

1969. Changes in technology have certainly driven ecommerce growth,
along with global circumstances. Ecommerce has evolved in many ways
since its start, and it’s changing the way we live, shop and do business.
The Evolution of Ecommerce:
A Detailed Timeline of Major
Developments
 Ecommerce, short for electronic commerce, has revolutionized the
way we shop and conduct business. Over the years, it has grown
from a mere concept to a global phenomenon, shaping industries
and transforming consumer behavior. In this blog post, we'll take a
deep dive into the timeline of major developments in ecommerce,
highlighting key milestones that have shaped the digital landscape

1979: The Inception of Online Shopping

 Michael Aldrich, an English inventor, pioneers the concept of
online shopping by connecting a television to a computer via
telephone lines.

 This system, known as Videotex, enables the secure transmission of

data, laying the foundation for future ecommerce platforms.

1994: The Birth of Ecommerce Giants

 Jeff Bezos founds Amazon.com as an online bookstore, marking
the birth of one of the most influential ecommerce companies in the
world.

 Netscape introduces SSL encryption, providing a secure way to

transmit sensitive information over the internet.
1995: eBay Launches Auction-Based Ecommerce

 Pierre Omidyar establishes eBay, an online auction and shopping

website, revolutionizing the way people buy and sell goods.

 The emergence of PayPal as a secure online payment system

further boosts the growth of ecommerce.

Late 1990s: Dotcom Boom and Bust

 The late 1990s witness a surge in ecommerce startups, with

companies like Pets.com and Webvan attracting significant
investments.

 However, the dotcom bubble bursts in 2000, leading to the

closure of many ecommerce ventures and a temporary setback
for the industry.

Early 2000s: Expansion of Ecommerce Infrastructure

 Broadband internet becomes more widely available, facilitating

faster and smoother online shopping experiences.

 Advancements in logistics and fulfillment lead to improved

shipping options and reduced delivery times.

2005: The Rise of Mobile Commerce

 eBay introduces its mobile app, marking the beginning of

mobile commerce or m-commerce.
  Consumers can now make purchases and conduct transactions
using their smartphones, paving the way for a new era of
convenience.

2006: Introduction of Shopify and Magento

 Shopify and Magento, two popular ecommerce platforms, are

launched, enabling businesses of all sizes to establish their online
stores easily.

 These platforms offer customizable templates, secure payment

gateways, and comprehensive inventory management tools.

2014: The Emergence of Social Commerce

 Social media platforms such as Facebook, Instagram, and Pinterest

integrate shopping functionalities, allowing users to purchase
products directly within the app.

 Brands leverage social commerce to reach and engage with their

target audience more effectively.

2015: The Era of Subscription Commerce

 Subscription-based ecommerce models gain popularity, offering

customers a convenient way to receive products on a recurring
basis.

 Companies like Birchbox and Dollar Shave Club pioneer this

approach, leading to a surge in subscription box services.

2020: Accelerated Growth Amid the Pandemic

 The COVID-19 pandemic accelerates the shift towards ecommerce

as physical stores temporarily close and consumers prioritize online
shopping.
 Online marketplaces, grocery delivery services, and digital
payment systems experience unprecedented demand and record-
breaking sales.