History and Evolution of E- commerce

History and evolution of e-commerce

At the early 1960’s, e-commerce was known as the process of execution of commercial transactions electronically with the help of the leading technologies. In other words, users can execute electronic transactions by using Electronic Funds Transfer (EFT). EFT is a system of transferring money from one bank account directly to another without any paper money changing hands.




Later in 1970s, e-commerce enabled business companies and organizations send commercial documentation such as invoices and purchase orders electronically through Electronic Date Interchange (EDI). EDI is the transfer of data between different companies using networks, such as VANs or the Internet. Thereafter, other forms of electronic commerce emerged, such as automatic teller machines, credit cards, and telephone banking.

Since the early 1990s, e-commerce has developed into the huge global internet market that exists today. Before 1991, commercial enterprise on the internet was strictly prohibited. However, in 1992, when the Mosaic web-browser was made available, it was quickly adapted into a downloadable browser, Netscape, and allowed an easier access to electronic commerce. The development of DSL was another key element in the development to of e-commerce. DSL allowed quicker access and a persistent connection to the Internet. The development of Red Hat Linux was also another major factor in the growth of electronic commerce. Linux was an open source and reliable. More importantly, it gave users another alternative for Windows. Thus, Microsoft invested more in many things including electronic commerce in order to stay competitive.


In 1994, the internet started to become popular around the world, and by the beginning of the twenty-first century, more and more companies worldwide were offering their services over the internet. In today’s context, e- commerce is known as the ability to purchase a variety of goods and services over the internet using secure protocols and electronic payment systems.

The early adoptors of e-commerce in Malaysia include Pizza Hut and Malaysia Airline Cargo (MASKargo).

Web 2.0

Web 2.o is a term that is used to describe a second- generation of Internet-based services that let people collaborate and share information online in perceived ways. For example, social networking sites, wikis, and communication tools.

It is evolved from the previous generation of Web 1.0.

Web 1.0 ----------------------------> Web 2.0

• Double Click -------------------------> Google Adsense

• Mp3.com -------------------------> Napster

• Personal Web Sites ------------------> Blogging

• Britannica Online --------------------> Wikipedia

• Content management systems ---------> Wikis

Web 2.0 makes the finding of information easier, and uses RSS technology to notify users about the changes of content in a timely manner. A major characteristic of Web 2.0 is the global spread of innovative Web sites, whereby when a good website exists in a country, similar sites will appear around the world.




The six principles in Web 2.0 are:

1. Sell everywhere- Web 2.0 includes various online channels with additional branded websites, various online marketplaces (such as eBay, Amazon.com, Overstock.com, and others), and online shopping comparison engines (such as Shopping.com, PriceGrabber.com, and others).
2. Target Niche Markets- Web 2.0 is able to reach beyond the traditional prospect base and tap the potential of niche markets.
3. Customers Rule- The content buyers create through forums such as product reviews, blogs, and social networks influences other buyers as much or more than any promotion eTailers create. For example, Youtube and MySpace.
4. Personalised Shopping
5. Integrate and Collaborate- Web 2.0 was built upon many interrelated systems and processes that require information to be exchanged dynamically.
6. Data is the King- Web 2.0 allows collection and management of data from all online channels to enable better business decisions.

References:
http://www.ecommerce-land.com/history_ecommerce.html

http://www.flysyk02.netfirms.com/Ecommerce/History.htm

http://www.articlesnatch.com/Article/A-Brief-History-of-E-Commerce/634686