The History of E-Commerce
The history of e-commerce is a great metaphor for the achievements of the human species. From being hunters and gatherers to ordering meals over the internet, we have come a long way in how we gather the food we consume. Not just food, today technology allows us to purchase just about anything online—from clothing to computers to even an innovative online currency called bitcoins that relies on virtual “coins” and, in fact, has no material existence.
Shopping is one of the most popular uses of the internet today. Not surprisingly, people are drawn to online shopping because of its ease of use and the ability to purchase things right from home. E-commerce, or electronic commerce, was first used in the forties by suppliers to provide businesses with invoice and other such documents.
E-Commerce and the Berlin Blockade
The most historically significant use of e-commerce was in 1948 when the Soviet Union began a blockade of all modes of communication between Berlin and the West. During this period, Berlin was able to make use of the e-commerce technology available at the time to order goods from abroad.
The Two Major Players
In 1991, electronic commerce became available to the average consumer when the internet was allowed to be used for commercial purposes. Amazon and eBay were the first major players during the initial years of e-commerce, transforming the way we buy things. Amazon was the first worldwide merchant selling to shoppers from dozens of countries within a year of going online. eBay, on the other hand, was one of the first websites that allowed its users to become online merchants themselves.
Online Versus Retail Shopping
Today, online shopping is more secure and convenient than ever and happens to be an industry generating over twenty trillion dollars a year worldwide. The UK and China lead the way when it comes to e-commerce versus retail sales with the UK at 11.6% and China at 8.3% of their total purchases being done over the internet. Trends indicate that these numbers will only increase with time. An avoidable consequence of shopping online is it kills brick and mortar stores. For businesses, having a good mix of retail and online is essential for staying afloat in such changing times. For this reason, all major retail stores have set up their online stores.
Benefits for Businesses
The benefits of selling online for businesses is threefold. Firstly, search engines make it easy for their websites to be found without the need for expensive advertising. Secondly, tools such as Google Analytics have made it easy to track customer preferences which allows businesses to provide marketing that is tailor-fit for individual users. Thirdly, geographical barriers are reduced enabling small merchants to reach shoppers from the other side of the world.
Benefits for Shoppers
Besides being convenient for shoppers, e-commerce also provides electronic word of mouth to help with the buying decision. Online reviews and comments by other shoppers give a good insight on whether or not the product in question is enough bang for the buck. Even still, shopping online may not be the same as going to one’s favorite local store with one’s friends and family. Online shopping changes the community of shoppers into a diverse pool of people from every nook and corner of the world.
E-commerce is sure to evolve with each major technological advancement. Today, social media is able to track its users likes and dislikes and present relevant ads. There are numbers payment options such as PayPal and Apple Pay which allow for secure and quick online purchases. The cyberspace is making it possible to have the product of one’s dreams to be shipped right to one’s doorstep with the click of a mouse. E-commerce, therefore, is a revolutionary method of buying as much as it is of selling because it’s able to break barriers of distance and time.
