The Evolution of Electronic Commerce
Commerce is not a completely new type of commerce. The dawn of E-Commerce
started few decades ago and continues to grow exponentially. It first emerged
on private networks in 1970s. Electronic Data Interchanges and teleshopping
together paved the way for the E-Commerce.
The history of modern E-Commerce is closely twisted
together with the history of the Internet. E-Commerce became really possible
when the Internet was opened to commercial use. Online shopping started to grow
when National Science Foundation opened the Internet to the public in 1991.
Since then businesses have reached websites.
With the progress of the Internet technology and
vastly developed global Internet community, large number of Dotcoms, FinTech
and Internet Startups have appeared and a strong foundation of electronic
commerce continues to build.
The Internet has provided new commercial potential
not only for large organizations, but also provided a sustainable entry point
for Small and Medium-sized Enterprises (SMEs) of E-Commerce. Today, E-Commerce
is no longer an exclusive domain of large organizations or private networks.
though E- Commerce has been existing since few decades, it has recently
sustained significant growth. It is because the Internet has transformed from
an auxiliary communication medium of academics and large organizations to an
entrenched communication medium that extends nearly to all parts of mainstream society.
Integrated with commercialization of the Internet, personal computers and
electronic payment systems together made E-Commerce flourish.
growth of E-Commerce is also related to the socio-technological changes. The
more, the medium becomes deep-rooted, the more, are the users drawn towards it.
Increase of users, increases the markets. As the markets expand, more business
organizations are attracted. The more businesses accumulate it create
competition. The competition leads to innovation; innovation in turn drives the
development of technology; technology facilitates E-Commerce’s growth. See
In 1979, Michael Aldrich, an English entrepreneur, proposed a
technique that enables online transaction processing between consumers and
businesses, or between businesses. It was later proficiently called as
E-Commerce. In 1980 he invented a multi-purpose home infotainment device called
Teleputer, which was a fusion of Television, Computer and Telecom networking
In August 11, 1994 by noon of the day, Phil Brandenberger of
Philadelphia (U.S.A), bought a music CD (Sting’s “Ten Summoners’ Tales”) from
Kohn of Nashua (U.S.A) and paid $12.48 plus shipping charges using his credit
card through online. This is marked as the first true E-Commerce transaction.