History of E-Commerce

Table of Contents

  1. 1. Pre-Internet Foundations (1960s–1980s)
  2. 2. Early Online Marketplaces (1980s–Early 1990s)
  3. 3. Emergence of the World Wide Web and Commercialization (1990s)
  4. 4. Dot-Com Boom and Bust (Late 1990s–Early 2000s)
  5. 5. Modern E-commerce and Mobile Commerce (Mid-2000s–Present)
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    • The following is a brief history of E-commerce taken from The Agile Brand Guide: E-commerce:

    1. Pre-Internet Foundations (1960s–1980s)

    • Electronic Data Interchange (EDI): In the 1960s, EDI allowed businesses to exchange documents electronically, laying the groundwork for digital transactions[i]. ​
    • Electronic Funds Transfer (EFT): Developed in the 1970s, EFT enabled the electronic transfer of money between financial institutions, facilitating online financial transactions. ​
    • Michael Aldrich’s Online Shopping System (1979): Aldrich connected a modified television to a transaction processing computer via a telephone line, pioneering online shopping[ii]. ​
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    2. Early Online Marketplaces (1980s–Early 1990s)

    • Boston Computer Exchange (1982): One of the first online marketplaces, it specialized in used computer equipment[iii]. ​
    • Minitel (1982): Launched in France, Minitel was a Videotex online service accessible through telephone lines, allowing users to perform online transactions[iv]. ​
    • CompuServe’s Electronic Mall (1984): An early online shopping service offering products from various retailers. ​
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    3. Emergence of the World Wide Web and Commercialization (1990s)

    • WorldWideWeb Browser (1990): Tim Berners-Lee developed the first web browser, facilitating easier access to online information. ​
    • Launch of Amazon and eBay (1995): Amazon began as an online bookstore, and eBay introduced online auctions, both becoming major e-commerce platforms. ​
    • Introduction of Secure Socket Layers (SSL) Encryption (1994): Netscape’s SSL v2 encryption standard ensured secure data transfer, essential for safe online transactions[v]. ​
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    4. Dot-Com Boom and Bust (Late 1990s–Early 2000s)

    • Rapid Growth of Online Businesses: Numerous e-commerce startups emerged, attracting significant investment during the dot-com boom[vi]. ​
    • Dot-Com Bubble Burst (2000): Many internet-based companies failed due to a lack of sustainable business models, leading to a market downturn. ​
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    5. Modern E-commerce and Mobile Commerce (Mid-2000s–Present)

    • Rise of Mobile Commerce: The proliferation of smartphones led to the growth of mobile shopping apps and platforms. ​
    • Expansion of Global Platforms: Companies like Alibaba and Shopify enabled businesses worldwide to engage in e-commerce, expanding global reach[vii]. ​
    • Integration of Social Media and E-commerce: Platforms like Facebook and Instagram introduced shopping features, blending social media with online retail.

    [i] eCommerce Education.(September 15, 2024). A brief history of eCommerce: Past, present, and future. eCommerce Education. https://www.ecommerceeducation.org/blog/a-brief-history-of-ecommerce-past-present-and-future

    [ii] 1982 Videotex Communications. (December 1982). Collected Papers Aldrich Archive. University of Brighton (PDF).

    [iii] Campbell, S., Kakizawa, Y., Meyer, E. & Rapten, K. Tools from Industrial Ecology. Yale University Electronics Recycling 1998.

    [iv] Minitel. (27 June 2012). The rise and fall of the France-wide web – BBC News.

    [v] Gilber, Alorie (11 August 2004). E-commerce turns 10. CNet.

    [vi] McCullough, Brian. “20 YEARS ON: WHY NETSCAPE’S IPO WAS THE “BIG BANG” OF THE INTERNET ERA”. www.internethistorypodcast.com. INTERNET HISTORY PODCAST.

    [vii] Coursera. (17 January 2025). What is e-commerce?. Coursera. https://www.coursera.org/in/articles/ecommerce

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