A Look into the History of E-commerce and its Services

A few decades ago, online shopping was probably just a wild, incomprehensible notion. Today, the e-commerce industry’s market size is about $5.55 trillion. While online sales were about 17.8% in 2020, it is expected to touch 21% in 2022 and go beyond 24.5% in the next three years. Let’s revisit where it started and discover the significant elements that led to such a boom and the emergence of today’s e-commerce services.

Where it all started: Unlike what most people think, e-commerce was not born in the late 1990s. The history of this revolutionary concept can be traced back to the 1960s.

E-commerce was a possibility because Electronic Data Interchange (EDI) was developed in the 1960s. The American National Standards Institute further strengthened the system for electronic exchanges between industries with the Accredited Standards Committee X12. Here’s a brief timeline of the early years of e-commerce:

– CompuServe, in 1969, was the first online service in the country. It was the brainchild of two students at Columbus who studied engineering.

– In 1979, Michael Aldrich from the UK connected a domestic TV to a computer via a phone line for real-time transactions.

– Boston Computer Exchange was the first online marketplace to open in 1982.

– In 1990, the world wide web came into being.

– And in 1991, the National Science Foundation allowed the use of NET commercially.

– In 1992, Book Stacks Unlimited by Charles M. Stack was the first-ever online store, offering customers a peep into the shopping-online niche.

– In 1994, online transactions became safer thanks to the creation of secure socket layers (SSL).

– Two of the world’s largest online e-commerce marketplaces were launched in 1995, making it an iconic year for businesses. In the next two years, both platforms completed over 1 million transactions.

– The year 2004 saw the creation of the Payment Card Industry Security Standards Council of PCI. And ever since, there has been no looking back for either of the platforms. In fact, more have joined the industry, forever changing how we shop, book tickets, order food, etc.

Key elements: The evolvement of the behemothian internet has led to a paradigm-shifting transition in how we shop. Online shopping or e-commerce is a big convenience for the masses. However, not all e-commerce sites are successful; some crucial elements are missing in some portals. Here are the 10 must-have elements of an e-commerce site:

– Easy navigation or user-friendliness is foremost. The site should be simple to move around and inviting for the user to explore.

– An easy checkout process is a must. Many sites make things overly complex when the user is ready to checkout, compelling them to abandon the shopping cart.

– Mobile responsiveness is crucial, with most people now shopping directly from their handheld devices.

– No Call to Action (CTA) means an incomplete proposal. CTA prompts the user to take action. In a competitive world, this is a must-have feature.

– Security and confidentiality are two integral parts of e-commerce sites that the merchant should not compromise with.

Types of e-commerce services: Generally speaking, there are seven broad types of services in the e-commerce industry:

B2C or business-to-consumer: This model entails an online business selling directly to an end-user or an individual customer. This service is one of the most common types and widely popular. In most cases, the business is a retailer, merchant, or any third-party platform connecting the user to the manufacturer. For example, when you shop for clothes from an online garment store.

B2B or business-to-business: In this format, businesses sell and buy from other businesses; for example, an online wholesaler business selling to retailers.

C2C or consumer-to-consumer: This model involves customers directly selling to customers through an online platform or a third party that facilitates the transaction. An example is the selling of used cars or other goods and services.

D2C or direct-to-consumer: This is an e-commerce service type where a manufacturer sells and ships goods directly to the end customer.

C2B or consumer-to-business: This type of service involves individuals selling their products to businesses. For example, local artisans sell their homemade handicrafts to a platform that works in the B2C or B2B model.

B2A or business-to-administration: Also referred to as B2G or business to government, this model entails selling products and services directly to public entities, government departments, local authorities, etc. For example, government departments use software programs to manage their day-to-day work.

C2A or consumer-to-administration: In this format, consumers sell goods and services directly to an administrative or government body, e.g., filing online taxes via a third-party platform acting as a facilitator.

E-commerce is growing by leaps and bounds, so it’s noteworthy that all the seven types of e-commerce models are showing impressive growth rates and are forecasted to become even bigger.