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