| Electronic Commerce is exactly analogous | | | | would also have involved information |
| to a marketplace on the Internet. | | | | analysis. The growth and acceptance of |
| Electronic Commerce (also referred to as | | | | credit cards, automated teller machines |
| EC, e-commerce eCommerce or ecommerce) | | | | (ATM) and telephone banking in the 1980s |
| consists primarily of the distributing, | | | | were also forms of e-commerce. However, |
| buying, selling, marketing and servicing | | | | from the 1990s onwards, this would |
| of products or services over electronic | | | | include enterprise resource planning |
| systems such as the Internet and other | | | | systems (ERP), data mining and data |
| computer networks. The information | | | | warehousing. |
| technology industry might see it as an | | | | In the dot com era, it came to include |
| electronic business application aimed at | | | | activities more precisely termed "Web |
| commercial transactions; in this | | | | commerce" -- the purchase of goods and |
| context, it can involve electronic funds | | | | services over the World Wide Web, |
| transfer, supply chain management, | | | | usually with secure connections (HTTPS, |
| e-marketing, online marketing, online | | | | a special server protocol that encrypts |
| transaction processing, electronic data | | | | confidential ordering data for customer |
| interchange (EDI), automated inventory | | | | protection) with e-shopping carts and |
| management systems, and automated data | | | | with electronic payment services, like |
| collection systems. Electronic commerce | | | | credit card payment authorizations. |
| typically uses electronic communications | | | | Today, it encompasses a very wide range |
| technology of the World Wide Web, at | | | | of business activities and processes, |
| some point in the transaction's | | | | from e-banking to offshore manufacturing |
| lifecycle, although of course electronic | | | | to e-logistics. The ever growing |
| commerce frequently depends on computer | | | | dependence of modern industries on |
| technologies other than the World Wide | | | | electronically enabled business |
| Web, such as databases, and e-mail, and | | | | processes gave impetus to the growth and |
| on other non-computer technologies, such | | | | development of supporting systems, |
| as transportation for physical goods | | | | including backend systems, applications |
| sold via e-commerce. | | | | and middleware. Examples are broadband |
| E-Commerce according to Person Halls | | | | and fiber-optic networks, supply-chain |
| book E-Commerce started in 1994 with the | | | | management software, customer |
| first banner ad being placed on a | | | | relationship management software, |
| website.According to the October 2006 | | | |
Active Directory Management
and
|
| Forrester Research report entitled, "US | | | | financial accounting software. |
| eCommerce: Five-Year Forecast And Data | | | | When the Web first became well-known |
| Overview, "Nontravel online retail | | | | among the general public in 1994, many |
| revenues will top the | | | | journalists and pundits forecast that |
| quarter-trillion-dollar mark by 2011. | | | | e-commerce would soon become a major |
| The driver of this growth? A segment of | | | | economic sector. However, it took about |
| the most active Web shopping households | | | | four years for security protocols (like |
| that is approximately 8 million strong. | | | | HTTPS) to become sufficiently developed |
| This group of consumers is extremely | | | | and widely deployed. Subsequently, |
| comfortable with technology and values | | | | between 1998 and 2000, a substantial |
| convenience above all else in the online | | | | number of businesses in the United |
| retail experience. As retailers begin to | | | | States and Western Europe developed |
| wade through their copious data | | | | rudimentary web sites. |
| warehouses and understand the who, what, | | | | Although a large number of "pure |
| when, where, why, and how of this | | | | e-commerce" companies disappeared during |
| segment, they will benefit from | | | | the dot-com collapse in 2000 and 2001, |
| targeting these customers." | | | | many "brick-and-mortar" retailers |
| Historical development | | | | recognized that such companies had |
| The meaning of the term "electronic | | | | identified valuable niche markets and |
| commerce" has changed over the last 30 | | | | began to add e-commerce capabilities to |
| years. Originally, "electronic commerce" | | | | their Web sites. For example, after the |
| meant the facilitation of commercial | | | | collapse of online grocer Webvan, two |
| transactions electronically, usually | | | | traditional supermarket chains, |
| using technology like Electronic Data | | | | Albertsons and Safeway, both started |
| Interchange (EDI) and Electronic Funds | | | | e-commerce subsidiaries through which |
| Transfer (EFT), where both were | | | | consumers could order groceries online. |
| introduced in the late 1970s, for | | | | The emergence of e-commerce also |
| example, to send commercial documents | | | | significantly lowered barriers to entry |
| like purchase orders or invoices | | | | in the selling of many types of goods; |
| electronically. | | | | accordingly many small home-based |
| The 'electronic' or 'e' in e-commerce | | | | proprietors are able to use the internet |
| refers to the technology/systems; the | | | | to sell goods. Often, small sellers use |
| 'commerce' refers to be traditional | | | | online auction sites such as EBay(tm), |
| business models. E-commerce is the | | | | or sell via large corporate websites |
| complete set of processes that support | | | | like Amazon.com, in order to take |
| commercial/business activities on a | | | | advantage of the exposure and setup |
| network. In the 1970s and 1980s, this | | | | convenience of such sites. |