The History of E-Commerce | How Did It Begin?

Buying and selling items and services through the Internet is referred to as electronic commerce or eCommerce. Ordering items, purchasing a service, purchasing a subscription to an information source, or even setting up an online bill-paying schedule are all examples of eCommerce. It's difficult for most of us to picture current living without eCommerce. Not only would it be inconvenient, but it would also be lot more difficult.

Still, as pervasive as eCommerce has grown in our lives, there was a time when it didn't exist. The beginnings of eCommerce may be traced back roughly 40 years when "teleshopping" first arose as a forerunner to the present form.

The history of eCommerce

Of course, eCommerce, as we know it today, had its start when Amazon, the world's largest retailer, launched one of the first eCommerce websites in the early 1990s. Countless businesses have followed in its footsteps since then. Companies have been conducting business through computer networks since the 1960s, but that form of eCommerce would be nearly unrecognizable to us now.

The world's first routers were commissioned by ARPA (Advanced Research Projects Agency) in 1968. Within a year, the ARPANET network was established to ensure that critical communication connections would remain operational in the event of a nuclear strike.

Researchers discovered a novel way for calling into ARPANET using only a computer terminal three years later. TIP later evolved into Transmission Control Protocol and Internet Protocol (TCP/IP), which is being used today. This technology aided in the transition of the Internet from military bases and university labs to corporate offices.

It was used by businesses to transmit business papers with one another, depending only on Electronic Data Interchange (EDI), a digital information transmission technique that may replace mail and fax in document sharing. This technique allowed data to be transferred from one computer to another without the need for human intervention.

The American National Standards Institute (ANSI) didn't step in and develop a standard for exchanging corporate papers until 1979. It was known as ASC X12, and it provided businesses with a trustworthy standard for distributing documents over the internet.

Another first for the Internet Age occurred in 1979: the birth of eCommerce.

The beginning

By linking television and the telephone lines in 1979, English inventor Michael Aldrich invented and pioneered what would soon become known as eCommerce. According to legend, Aldrich came up with the concept while out for a stroll with his wife, lamenting the annoyance of having to travel to the market on a daily basis. Wouldn't it be so much easier if you could just order what you needed from the comfort of your own home?

Shortly after, he created a system that allowed viewers to phone a processing center to place orders for goods and services advertised on television. Aldrich used the term "teleshopping" to describe his method, and eCommerce was born.

The Internet continued to evolve during the 1980s and early 1990s, as new technologies like SSL made it something that more and more people felt comfortable utilizing. Minitel, a service that was a forerunner to the World Wide Web, was founded in 1982 by French entrepreneurs. This service, which used a Videotex terminal and telephone lines to link millions of people, was free for telephone customers. By 1999, the Minitel had grown to over 9 million terminals, connecting around 25 million people.

The World Wide Web, on the other hand, quickly caught up. Its fast development swiftly overshadowed the Minitel after its public debut in 1991. Minitel was formally decommissioned by France Telecom in 2012.

A more user-friendly web

Tim Berners-Lee and Robert Cailliau released a concept for the "WorldWideWeb" hypertext browser in 1990. Berners-Lee also created the first Web server in the same year. Berners-Lee made history again on August 6, 1991, when he launched the first website, ushering in the World Wide Web as a publicly accessible service.

Shortly after, the National Science Foundation eased prohibitions on commercial usage of the Internet, paving the path for online commerce. The National Science Foundation began collecting user fees for domain name registration in 1995. In just three years, the number of domain names registered has increased from 120,000 to over 2 million.

Many concerns about online purchasing security lingered, but the introduction of Secure Socket Layers (SSL) technology made it feasible to communicate data securely over the Internet.

Authenticated SSL certificates for websites were detected by browsers, indicating if the websites were secure and trustworthy. The SSL encryption protocol is still one of the most important aspects of Web security.

How eCommerce was developed

After the early years of the Internet, technological breakthroughs began to take hold, resulting in an increase in commercial use. As previously stated, Amazon began as an online bookshop in 1995. Large brick-and-mortar bookstores could only handle approximately 200,000 volumes — at most – during that period.

Amazon, on the other hand, has no such restrictions as an internet retailer. It might hold a wide range of titles, from great sellers to obscure works. Amazon has grown to the point that it currently sells almost any commodity conceivable, including eBooks and movies, since its inception. Amazon was also the first to share customer reviews, which was formerly thought to be an eCommerce suicide.

Obviously, the exact opposite occurred. Amazon became one of the most influential corporations in the world almost overnight by allowing customers to offer their views. In the meanwhile, eBay, which launched in 1995, has become a popular online auction platform.

Etsy was founded in 2005 as a global marketplace where people could open stores and sell their one-of-a-kind, frequently handcrafted things. Amazon Prime, a program that promised subscribers free two-day shipping within the continental United States, was introduced the same year. This initiative established a norm in the eCommerce industry, requiring other merchants to reduce delivery times and costs.

PayPal was founded in 1998 as a global eCommerce corporation that processed payments for internet merchants and other businesses. Customers of PayPal may save, transfer, and receive money in a variety of currencies.

The Payment Card Industry Security Standards Council was established in 2004 to ensure that firms adhere to security regulations. This organization creates and executes security guidelines for the protection of account data. Consumers nowadays utilize mobile devices not just for purchases, but also for product research, coupon hunting, and social media interaction.

Future of eCommerce

eCommerce has a bright future ahead of it! By 2024, eCommerce sales are predicted to surpass in-store sales in the United States. The digital competition will only rise as traditional wholesalers go online and global retail giants like Walmart boost their eCommerce activities. Furthermore, rivals in product categories that aren't typically popular online, such as domestic staples, health, and personal care products, will compete for eCommerce customers.

eCommerce shops will need to establish their specialty or find other methods to compete in order to survive and flourish. That tendency is likely to continue for many years to come. Advancements in diverse screen kinds are one example of technology radically impacting the future of eCommerce. Wearables, kiosks, and better voice engagements will soon be used by customers to connect with eCommerce touchpoints.

Personalization in eCommerce will also continue to advance the sector. We've already arrived at a position where websites can "remember" their visitors and customize their shopping experiences accordingly. This has a number of benefits, not the least of which is an increase in conversions and client happiness. It also generates game-changing data that businesses can employ to improve the user experience on their websites.


 

Stack discount codes, discounts field on cart, combine discount codes, run multiple automatic discounts, and more!

Previous
Previous

What Is The Difference Between B2C and B2B E-Commerce?

Next
Next

How Store Credit is Beneficial for You and Your Customers