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History Of E-commerce
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Published: October 3, 2006
Have you ever wondered about the creation of electronic commerce, also known as e-commerce? When did it start? Who created it? When did the popularity finally take off and increase? What are the advantages and disadvantages of e-commerce? Will e-commerce continue to expand with increasing popularity or will sales decrease?
The first official start of e-commerce began in 1968 (almost forty years ago) when a system known as Electronic Data Interchange (EDI) was developed. EDI "allowed different companies to perform electronic dealings with one another." E-commerce historians note that there was no guarantee that companies in 1968 had the same transaction capabilities.
The compatibility issue was resolved in 1984 when EDI was standardized through a process called ASC X12. The American National Standards Institute (ANSI) created the Accredited Standards Committee with the designation of the committee as "X12," or the shortened name "ASC X12." ASC X12 ensures reliable transactions between companies.
In the 1990s, e-commerce began to take off. CompuServe provided online shopping to their customers in 1992. Also in 1992, Marc Andreessen created Mosaic, the first web browser that allowed point and click internet access. Two years later, Netscape and safe online bill pay with Secure Sockets Layer (SSL) were introduced. In 1995, eBay and Amazon.com were established.
With every business, there are benefits and drawbacks to the system. They are both numerous and understandable. Some of the basic benefits to e-commerce include an increase in sales. This is because shopping is easier over the web than traveling to a conventional "brick and mortar" store. Profits increase and costs decrease. The size of the market can increase from regional, to national and international. E-commerce also has the ability to reach a narrower market than a conventional store.
The disadvantages to an e-commerce business include the fact that some customers do not want to buy online for fear of identity theft. Others include, customers not being used to "faceless, paperless, non-physical transactions," insufficient connection bandwidth, non-up-to-date browsers and other technical problems.
The trends for the future of e-commerce are strong. E-Marketer projects that though the estimated rate for 2005 through 2009 is 18.6% (down from 2001 to 2005's rate of 26%), 18.6% is still considered by eMarketer to be "strong growth." This lower than before percentage is due to a "maturing e-commerce marketplace," says eMarketer. The web site goes on to say that customers are buying "big-ticket items" such as treadmills and refrigerators and luxury goods like jewelry and designer clothes. It can be concluded that though projected sales for the last half of this decade are lower than the first half, e-commerce sales are projected to be strong and constant with a possibility of new retailing options in the future.
Weisman, Jon. "The Making of E-Commerce: 10 Key Moments", "History of E-Commerce." Kennesaw.edu. August 22, 2000. www.ecommercetimes.com. October 2, 2006.
http://pigseye.kennesaw.edu/~kpruss/history.html
"ASC X.12." EDI Resources Centre Ltd. Copyright 2006. EDI Resources Centre Ltd. October 2, 2006. http://edicity.com/Resources/x12.htm
Hiser, Emily, et al. History of E-Commerce." New Media. Date written unknown. Medill School of Journalism. Northwestern University. October 2, 2006.
http://newmedia.medill.northwestern.edu/courses/ nmpspring01/brown/Revstream/history.htm
Richardson, Professor W.T.G. "benefits and Limitations of E-Business." Witiger.com. April 27, 2006. www.witiger.com. October 2, 2006. http://www.witiger.com/ecommerce/benefits-limitati ons.htm
Grau, Jeffrey. "US Retail E-Commerce." eMarketer. May 2006. Copyright 2006. eMarketer Inc. October 2, 2006. http://www.emarketer.com/Reports/All/Ecom_us_jun06 .aspx
The first official start of e-commerce began in 1968 (almost forty years ago) when a system known as Electronic Data Interchange (EDI) was developed. EDI "allowed different companies to perform electronic dealings with one another." E-commerce historians note that there was no guarantee that companies in 1968 had the same transaction capabilities.
The compatibility issue was resolved in 1984 when EDI was standardized through a process called ASC X12. The American National Standards Institute (ANSI) created the Accredited Standards Committee with the designation of the committee as "X12," or the shortened name "ASC X12." ASC X12 ensures reliable transactions between companies.
In the 1990s, e-commerce began to take off. CompuServe provided online shopping to their customers in 1992. Also in 1992, Marc Andreessen created Mosaic, the first web browser that allowed point and click internet access. Two years later, Netscape and safe online bill pay with Secure Sockets Layer (SSL) were introduced. In 1995, eBay and Amazon.com were established.
With every business, there are benefits and drawbacks to the system. They are both numerous and understandable. Some of the basic benefits to e-commerce include an increase in sales. This is because shopping is easier over the web than traveling to a conventional "brick and mortar" store. Profits increase and costs decrease. The size of the market can increase from regional, to national and international. E-commerce also has the ability to reach a narrower market than a conventional store.
The disadvantages to an e-commerce business include the fact that some customers do not want to buy online for fear of identity theft. Others include, customers not being used to "faceless, paperless, non-physical transactions," insufficient connection bandwidth, non-up-to-date browsers and other technical problems.
The trends for the future of e-commerce are strong. E-Marketer projects that though the estimated rate for 2005 through 2009 is 18.6% (down from 2001 to 2005's rate of 26%), 18.6% is still considered by eMarketer to be "strong growth." This lower than before percentage is due to a "maturing e-commerce marketplace," says eMarketer. The web site goes on to say that customers are buying "big-ticket items" such as treadmills and refrigerators and luxury goods like jewelry and designer clothes. It can be concluded that though projected sales for the last half of this decade are lower than the first half, e-commerce sales are projected to be strong and constant with a possibility of new retailing options in the future.
Weisman, Jon. "The Making of E-Commerce: 10 Key Moments", "History of E-Commerce." Kennesaw.edu. August 22, 2000. www.ecommercetimes.com. October 2, 2006.
http://pigseye.kennesaw.edu/~kpruss/history.html
"ASC X.12." EDI Resources Centre Ltd. Copyright 2006. EDI Resources Centre Ltd. October 2, 2006. http://edicity.com/Resources/x12.htm
Hiser, Emily, et al. History of E-Commerce." New Media. Date written unknown. Medill School of Journalism. Northwestern University. October 2, 2006.
http://newmedia.medill.northwestern.edu/courses/ nmpspring01/brown/Revstream/history.htm
Richardson, Professor W.T.G. "benefits and Limitations of E-Business." Witiger.com. April 27, 2006. www.witiger.com. October 2, 2006. http://www.witiger.com/ecommerce/benefits-limitati ons.htm
Grau, Jeffrey. "US Retail E-Commerce." eMarketer. May 2006. Copyright 2006. eMarketer Inc. October 2, 2006. http://www.emarketer.com/Reports/All/Ecom_us_jun06 .aspx
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