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E-commerce
E-commerce (electronic commerce) is the activity of electronically buying or selling of products
on online services or over the Internet. E-commerce draws on technologies such as mobile commerce,
electronic funds transfer, supply chain management, Internet marketing, online transaction
processing, electronic data interchange (EDI), inventory management systems, and automated data
collection systems. E-commerce is in turn driven by the technological advances of the semiconductor
industry, and is the largest sector of the electronics industry.

Contents
Defining e-commerce
Forms
Governmental regulation
Global trends
Logistics
Impacts
Impact on markets and retailers
Impact on supply chain management
Impact on employment
Impact on customers
Impact on the environment
Impact on traditional retail
E-commerce during COVID-19
Business application
Timeline
See also
References
Further reading
External links

Defining e-commerce
The term was coined and first employed by Dr. Robert Jacobson, Principal Consultant to the
California State Assembly's Utilities & Commerce Committee, in the title and text of California's
Electronic Commerce Act, carried by the late Committee Chairwoman Gwen Moore (D-L.A.) and
enacted in 1984.

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E-commerce typically uses the web for at least a part of a transaction's life cycle although it may also
use other technologies such as e-mail. Typical e-commerce transactions include the purchase of
products (such as books from Amazon) or services (such as music downloads in the form of digital
distribution such as iTunes Store).[1] There are three areas of e-commerce: online retailing, electronic
markets, and online auctions. E-commerce is supported by electronic business.[2] The existence value
of e-commerce is to allow consumers to shop online and pay online through the Internet, saving the
time and space of customers and enterprises, greatly improving transaction efficiency, especially for
busy office workers, but also saving a lot of valuable time.[3]

E-commerce businesses may also employ some or all of the following:

Online shopping for retail sales direct to consumers via web sites and mobile apps, and
conversational commerce via live chat, chatbots, and voice assistants;[4]
Providing or participating in online marketplaces, which process third-party business-to-consumer
(B2C) or consumer-to-consumer (C2C) sales;
Business-to-business (B2B) buying and selling;[5]
Gathering and using demographic data through web contacts and social media;
B2B electronic data interchange;
Marketing to prospective and established customers by e-mail or fax (for example, with
newsletters);
Engaging in pretail for launching new products and services;
Online financial exchanges for currency exchanges or trading purposes.

There are five essential categories of E-commerce:[6]

Business to Business
Business to Consumer
Business to Government
Consumer to Business
Consumer to Consumer

Forms
Contemporary electronic commerce can be classified into two categories. The first category is business
based on types of goods sold (involves everything from ordering "digital" content for immediate
online consumption, to ordering conventional goods and services, to "meta" services to facilitate other
types of electronic commerce). The second category is based on the nature of the participant (B2B,
B2C, C2B and C2C).[7]

On the institutional level, big corporations and financial institutions use the internet to exchange
financial data to facilitate domestic and international business. Data integrity and security are
pressing issues for electronic commerce.

Aside from traditional e-commerce, the terms m-Commerce (mobile commerce) as well (around
2013) t-Commerce[8] have also been used.

Governmental regulation

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In the United States, California's Electronic Commerce Act (1984), enacted by the Legislature, and the
more recent California Privacy Rights Act (2020) enacted through a popular election proposition,
control specifically how electronic commerce may be conducted in California. In the US in its entirety,
electronic commerce activities are regulated more broadly by the Federal Trade Commission (FTC).
These activities include the use of commercial e-mails, online advertising and consumer privacy. The
CAN-SPAM Act of 2003 establishes national standards for direct marketing over e-mail. The Federal
Trade Commission Act regulates all forms of advertising, including online advertising, and states that
advertising must be truthful and non-deceptive.[9] Using its authority under Section 5 of the FTC Act,
which prohibits unfair or deceptive practices, the FTC has brought a number of cases to enforce the
promises in corporate privacy statements, including promises about the security of consumers'
personal information.[10] As a result, any corporate privacy policy related to e-commerce activity may
be subject to enforcement by the FTC.

The Ryan Haight Online Pharmacy Consumer Protection Act of 2008, which came into law in 2008,
amends the Controlled Substances Act to address online pharmacies.[11]

Conflict of laws in cyberspace is a major hurdle for harmonization of legal framework for e-commerce
around the world. In order to give a uniformity to e-commerce law around the world, many countries
adopted the UNCITRAL Model Law on Electronic Commerce (1996).[12]

Internationally there is the International Consumer Protection and Enforcement Network

(ICPEN), which was formed in 1991 from an informal network of government customer fair trade
organisations. The purpose was stated as being to find ways of co-operating on tackling consumer
problems connected with cross-border transactions in both goods and services, and to help ensure
exchanges of information among the participants for mutual benefit and understanding. From this
came Econsumer.gov, an ICPEN initiative since April 2001. It is a portal to report complaints about
online and related transactions with foreign companies.

There is also Asia Pacific Economic Cooperation (APEC) was established in 1989 with the vision
of achieving stability, security and prosperity for the region through free and open trade and
investment. APEC has an Electronic Commerce Steering Group as well as working on common
privacy regulations throughout the APEC region.

In Australia, Trade is covered under Australian Treasury Guidelines for electronic commerce and
the Australian Competition & Consumer Commission[13] regulates and offers advice on how to deal
with businesses online,[14] and offers specific advice on what happens if things go wrong.[15]

In the United Kingdom, The Financial Services Authority (FSA)[16] was formerly the regulating
authority for most aspects of the EU's Payment Services Directive (PSD), until its replacement in 2013
by the Prudential Regulation Authority and the Financial Conduct Authority.[17] The UK implemented
the PSD through the Payment Services Regulations 2009 (PSRs), which came into effect on 1
November 2009. The PSR affects firms providing payment services and their customers. These firms
include banks, non-bank credit card issuers and non-bank merchant acquirers, e-money issuers, etc.
The PSRs created a new class of regulated firms known as payment institutions (PIs), who are subject
to prudential requirements. Article 87 of the PSD requires the European Commission to report on the
implementation and impact of the PSD by 1 November 2012.[18]

In India, the Information Technology Act 2000 governs the basic applicability of e-commerce.

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In China, the Telecommunications Regulations of the People's Republic of China (promulgated on 25

September 2000), stipulated the Ministry of Industry and Information Technology (MIIT) as the
government department regulating all telecommunications related activities, including electronic
commerce.[19] On the same day, The Administrative Measures on Internet Information Services
released, is the first administrative regulation to address profit-generating activities conducted
through the Internet, and lay the foundation for future regulations governing e-commerce in
China.[20] On 28 August 2004, the eleventh session of the tenth NPC Standing Committee adopted
The Electronic Signature Law, which regulates data message, electronic signature authentication and
legal liability issues. It is considered the first law in China's e-commerce legislation. It was a milestone
in the course of improving China's electronic commerce legislation, and also marks the entering of
China's rapid development stage for electronic commerce legislation.[21]

Global trends
In 2010, the United Kingdom had the highest per capita e-commerce spending in the world.[22] As of
2013, the Czech Republic was the European country where e-commerce delivers the biggest
contribution to the enterprises' total revenue. Almost a quarter (24%) of the country's total turnover is
generated via the online channel.[23]

Among emerging economies, China's e-commerce presence continues to expand every year. With 668
million Internet users, China's online shopping sales reached $253 billion in the first half of 2015,
accounting for 10% of total Chinese consumer retail sales in that period.[24] The Chinese retailers
have been able to help consumers feel more comfortable shopping online.[25] e-commerce
transactions between China and other countries increased 32% to 2.3 trillion yuan ($375.8 billion) in
2012 and accounted for 9.6% of China's total international trade.[26] In 2013, Alibaba had an e-
commerce market share of 80% in China.[27] In 2014, there were 600 million Internet users in China
(twice as many as in the US), making it the world's biggest online market.[28] China is also the largest
e-commerce market in the world by value of sales, with an estimated US$899 billion in 2016.[29]
Research shows that Chinese consumer motivations are different enough from Western audiences to
require unique e-commerce app designs instead of simply porting Western apps into the Chinese
market.[30]

Recent research indicates that electronic commerce, commonly referred to as e-commerce, presently
shapes the manner in which people shop for products. The GCC countries have a rapidly growing
market and are characterized by a population that becomes wealthier (Yuldashev). As such, retailers
have launched Arabic-language websites as a means to target this population. Secondly, there are
predictions of increased mobile purchases and an expanding internet audience (Yuldashev). The
growth and development of the two aspects make the GCC countries become larger players in the
electronic commerce market with time progress. Specifically, research shows that the e-commerce
market is expected to grow to over $20 billion by 2020 among these GCC countries (Yuldashev). The
e-commerce market has also gained much popularity among western countries, and in particular
Europe and the U.S. These countries have been highly characterized by consumer-packaged goods
(CPG) (Geisler, 34). However, trends show that there are future signs of a reverse. Similar to the GCC
countries, there has been increased purchase of goods and services in online channels rather than
offline channels. Activist investors are trying hard to consolidate and slash their overall cost and the
governments in western countries continue to impose more regulation on CPG manufacturers
(Geisler, 36). In these senses, CPG investors are being forced to adapt to e-commerce as it is effective
as well as a means for them to thrive.

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In 2013, Brazil's e-commerce was growing quickly with retail e-commerce sales expected to grow at a
double-digit pace through 2014. By 2016, eMarketer expected retail e-commerce sales in Brazil to
reach $17.3 billion.[31] India has an Internet user base of about 460 million as of December 2017.[32]
Despite being the third largest user base in the world, the penetration of the Internet is low compared
to markets like the United States, United Kingdom or France but is growing at a much faster rate,
adding around 6 million new entrants every month. In India, cash on delivery is the most preferred
payment method, accumulating 75% of the e-retail activities.[33] The India retail market is expected to
rise from 2.5% in 2016 to 5% in 2020.[34]

The future trends in the GCC countries will be similar to that of the western countries. Despite the
forces that push business to adapt e-commerce as a means to sell goods and products, the manner in
which customers make purchases is similar in countries from these two regions. For instance, there
has been an increased usage of smartphones which comes in conjunction with an increase in the
overall internet audience from the regions. Yuldashev writes that consumers are scaling up to more
modern technology that allows for mobile marketing.
However, the percentage of smartphone and
internet users who make online purchases is expected to vary in the first few years. It will be
independent on the willingness of the people to adopt this new trend (The Statistics Portal). For
example, UAE has the greatest smartphone penetration of 73.8 per cent and has 91.9 per cent of its
population has access to the internet. On the other hand, smartphone penetration in Europe has been
reported to be at 64.7 per cent (The Statistics Portal). Regardless, the disparity in percentage between
these regions is expected to level out in future because e-commerce technology is expected to grow to
allow for more users.

The e-commerce business within these two regions will result in competition. Government bodies at
the country level will enhance their measures and strategies to ensure sustainability and consumer
protection (Krings, et al.). These increased measures will raise the environmental and social
standards in the countries, factors that will determine the success of the e-commerce market in these
countries. For example, an adoption of tough sanctions will make it difficult for companies to enter
the e-commerce market while lenient sanctions will allow ease of companies. As such, the future
trends between GCC countries and the Western countries will be independent of these sanctions
(Krings, et al.). These countries need to make rational conclusions in coming up with effective
sanctions.

The rate of growth of the number of internet users in the Arab countries has been rapid – 13.1% in
2015. A significant portion of the e-commerce market in the Middle East comprises people in the 30–
34 year age group. Egypt has the largest number of internet users in the region, followed by Saudi
Arabia and Morocco; these constitute 3/4th of the region's share. Yet, internet penetration is low: 35%
in Egypt and 65% in Saudi Arabia.[35]

E-commerce has become an important tool for small and large businesses worldwide, not only to sell
to customers, but also to engage them.[36][37]

Cross-border e-Commerce is also an essential field for e-Commerce businesses.  It has responded to
the trend of globalization. It shows that numerous firms have opened up new businesses, expanded
new markets, and overcome trade barriers; more and more enterprises have started exploring the
cross-border cooperation field. In addition, compared with traditional cross-border trade, the
information on cross-border e-commerce is more concealed. In the era of globalization, cross-border
e-commerce for inter-firm companies means the activities, interactions, or social relations of two or
more e-commerce enterprises. However, the success of cross-border e-commerce promotes the
development of small and medium-sized firms, and it has finally become a new transaction mode. It

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has helped the companies solve financial problems and realize the reasonable allocation of resources
field. SMEs ( small and medium enterprises) can also precisely match the demand and supply in the
market, having the industrial chain majorization and creating more revenues for companies.[38]

In 2012, e-commerce sales topped $1 trillion for the first time in history.[39]

Mobile devices are playing an increasing role in the mix of e-commerce, this is also commonly called
mobile commerce, or m-commerce. In 2014, one estimate saw purchases made on mobile devices
making up 25% of the market by 2017.[40]

For traditional businesses, one research stated that information technology and cross-border e-
commerce is a good opportunity for the rapid development and growth of enterprises. Many
companies have invested an enormous volume of investment in mobile applications. The DeLone and
McLean Model stated that three perspectives contribute to a successful e-business: information
system quality, service quality and users' satisfaction.[41] There is no limit of time and space, there are
more opportunities to reach out to customers around the world, and to cut down unnecessary
intermediate links, thereby reducing the cost price, and can benefit from one on one large customer
data analysis, to achieve a high degree of personal customization strategic plan, in order to fully
enhance the core competitiveness of the products in the company.[42]

Modern 3D graphics technologies, such as Facebook 3D Posts, are considered by some social media
marketers and advertisers as a preferable way to promote consumer goods than static photos, and
some brands like Sony are already paving the way for augmented reality commerce. Wayfair now lets
you inspect a 3D version of its furniture in a home setting before buying.[43]

Logistics
Logistics in e-commerce mainly concerns fulfillment. Online markets and retailers have to find the
best possible way to fill orders and deliver products. Small companies usually control their own
logistic operation because they do not have the ability to hire an outside company. Most large
companies hire a fulfillment service that takes care of a company's logistic needs.[44]

Impacts

Impact on markets and retailers

E-commerce markets are growing at noticeable rates. The online market is expected to grow by 56%
in 2015–2020. In 2017, retail e-commerce sales worldwide amounted to 2.3 trillion US dollars and e-
retail revenues are projected to grow to 4.891 trillion US dollars in 2021.[45] Traditional markets are
only expected 2% growth during the same time. Brick and mortar retailers are struggling because of
online retailer's ability to offer lower prices and higher efficiency. Many larger retailers are able to
maintain a presence offline and online by linking physical and online offerings.[46]

E-commerce allows customers to overcome geographical barriers and allows them to purchase
products anytime and from anywhere. Online and traditional markets have different strategies for
conducting business. Traditional retailers offer fewer assortment of products because of shelf space
where, online retailers often hold no inventory but send customer orders directly to the manufacture.

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The pricing strategies are also different for

traditional and online retailers. Traditional
retailers base their prices on store traffic and the
cost to keep inventory. Online retailers base prices
on the speed of delivery.

There are two ways for marketers to conduct

business through e-commerce: fully online or
online along with a brick and mortar store. Online
marketers can offer lower prices, greater product
selection, and high efficiency rates. Many
customers prefer online markets if the products can
Store closing flags outside a Toys R Us in Deptford, be delivered quickly at relatively low price.
New Jersey. Despite investments, the chain struggled However, online retailers cannot offer the physical
to win market share in the age of digital commerce. experience that traditional retailers can. It can be
difficult to judge the quality of a product without
the physical experience, which may cause
customers to experience product or seller uncertainty. Another issue regarding the online market is
concerns about the security of online transactions. Many customers remain loyal to well-known
retailers because of this issue.[47][48]

Security is a primary problem for e-commerce in developed and developing countries. E-commerce
security is protecting businesses' websites and customers from unauthorized access, use, alteration, or
destruction. The type of threats include: malicious codes, unwanted programs (ad ware, spyware),
phishing, hacking, and cyber vandalism. E-commerce websites use different tools to avert security
threats. These tools include firewalls, encryption software, digital certificates, and passwords.

Impact on supply chain management

For a long time, companies had been troubled by the gap between the benefits which supply chain
technology has and the solutions to deliver those benefits. However, the emergence of e-commerce
has provided a more practical and effective way of delivering the benefits of the new supply chain
technologies.[49]

E-commerce has the capability to integrate all inter-company and intra-company functions, meaning
that the three flows (physical flow, financial flow and information flow) of the supply chain could be
also affected by e-commerce. The affections on physical flows improved the way of product and
inventory movement level for companies. For the information flows, e-commerce optimized the
capacity of information processing than companies used to have, and for the financial flows, e-
commerce allows companies to have more efficient payment and settlement solutions.[49]

In addition, e-commerce has a more sophisticated level of impact on supply chains: Firstly, the
performance gap will be eliminated since companies can identify gaps between different levels of
supply chains by electronic means of solutions; Secondly, as a result of e-commerce emergence, new
capabilities such implementing ERP systems, like SAP ERP, Xero, or Megaventory, have helped
companies to manage operations with customers and suppliers. Yet these new capabilities are still not
fully exploited. Thirdly, technology companies would keep investing on new e-commerce software
solutions as they are expecting investment return. Fourthly, e-commerce would help to solve many

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aspects of issues that companies may feel difficult to cope with, such as political barriers or cross-
country changes. Finally, e-commerce provides companies a more efficient and effective way to
collaborate with each other within the supply chain.[49]

Impact on employment

E-commerce helps create new job opportunities due to information related services, software app and
digital products. It also causes job losses. The areas with the greatest predicted job-loss are retail,
postal, and travel agencies. The development of e-commerce will create jobs that require highly skilled
workers to manage large amounts of information, customer demands, and production processes. In
contrast, people with poor technical skills cannot enjoy the wages welfare. On the other hand, because
e-commerce requires sufficient stocks that could be delivered to customers in time, the warehouse
becomes an important element. Warehouse needs more staff to manage, supervise and organize, thus
the condition of warehouse environment will be concerned by employees.[50]

Impact on customers

E-commerce brings convenience for customers as they do not have to leave home and only need to
browse websites online, especially for buying products which are not sold in nearby shops. It could
help customers buy a wider range of products and save customers' time. Consumers also gain power
through online shopping. They are able to research products and compare prices among retailers.
Thanks to the practice of user-generated ratings and reviews from companies like Bazaarvoice,
Trustpilot, and Yelp, customers can also see what other people think of a product, and decide before
buying if they want to spend money on it.[51][52] Also, online shopping often provides sales promotion
or discounts code, thus it is more price effective for customers. Moreover, e-commerce provides
products' detailed information; even the in-store staff cannot offer such detailed explanation.
Customers can also review and track the order history online.

E-commerce technologies cut transaction costs by allowing both manufactures and consumers to skip
through the intermediaries. This is achieved through by extending the search area best price deals and
by group purchase. The success of e-commerce in urban and regional levels depend on how the local
firms and consumers have adopted to e-commerce.[53]

However, e-commerce lacks human interaction for customers, especially who prefer face-to-face
connection. Customers are also concerned with the security of online transactions and tend to remain
loyal to well-known retailers. In recent years, clothing retailers such as Tommy Hilfiger have started
adding Virtual Fit platforms to their e-commerce sites to reduce the risk of customers buying the
wrong sized clothes, although these vary greatly in their fit for purpose.[54] When the customer regret
the purchase of a product, it involves returning goods and refunding process. This process is
inconvenient as customers need to pack and post the goods. If the products are expensive, large or
fragile, it refers to safety issues.[46]

Impact on the environment

In 2018, E-commerce generated 1.3  million short tons (1.2 megatonnes) of container cardboard in
North America, an increase from 1.1  million (1.00)) in 2017. Only 35 percent of North American
cardboard manufacturing capacity is from recycled content. The recycling rate in Europe is 80
percent and Asia is 93 percent. Amazon, the largest user of boxes, has a strategy to cut back on

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packing material and has reduced packaging material used by 19 percent by weight since 2016.
Amazon is requiring retailers to manufacture their product packaging in a way that doesn't require
additional shipping packaging. Amazon also has an 85-person team researching ways to reduce and
improve their packaging and shipping materials.[55]

Accelerated movement of packages around the world includes accelerated movement of living things,
with all its attendant risks.[56] Weeds, pests, and diseases all sometimes travel in packages of
seeds.[56] Some of these packages are part of brushing manipulation of e-commerce reviews.[56]

Impact on traditional retail

E-commerce has been cited as a major force for the failure of major U.S. retailers in a trend frequently
referred to as a "retail apocalypse."[57] The rise of e-commerce outlets like Amazon has made it harder
for traditional retailers to attract customers to their stores and forced companies to change their sales
strategies. Many companies have turned to sales promotions and increased digital efforts to lure
shoppers while shutting down brick-and-mortar locations.[58] The trend has forced some traditional
retailers to shutter its brick and mortar operations.[59]

E-commerce during COVID-19

In March 2020, global retail website traffic hit 14.3 billion visits[60] signifying an unprecedented
growth of e-commerce during the lockdown of 2020. Later studies show that online sales increased by
25% and online grocery shopping increased by over 100% during the crisis in the United States.[61]
Meanwhile, as many as 29% of surveyed shoppers state that they will never go back to shopping in
person again; in the UK, 43% of consumers state that they expect to keep on shopping the same way
even after the lockdown is over.[62]

Retail sales of e-commerce shows that COVID-19 has a significant impact on e-commerce and its sales
are expected to reach $6.5 trillion by 2023.[63]

Business application
Some common applications related to electronic commerce are:

B2B e-commerce (business-to-business)

B2C e-commerce (business-to-consumer)
Conversational commerce: e-commerce via chat
Digital Wallet
Document automation in supply chain and logistics
Electronic tickets
Enterprise content management
Group buying
Instant messaging
Internet security
Online auction
Online banking
Online office suites
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Online shopping and order tracking

Online transaction processing
Pretail
Print on demand
Shopping cart software
Social networking
Teleconference
Usenet newsgroup
Virtual assistant
Domestic and international payment systems

Timeline
An example of an older
generation of avatar-style
A timeline for the development of e-commerce:
automated online assistant on a
merchandising website.
1971 or 1972: The ARPANET is used to arrange a cannabis sale
between students at the Stanford Artificial Intelligence Laboratory
and the Massachusetts Institute of Technology, later described as
"the seminal act of e-commerce" in John Markoff's book What the Dormouse Said.[64]
1979: Michael Aldrich demonstrates the first online shopping system.[65]
1981: Thomson Holidays UK is the first business-to-business (B2B) online shopping system to be
installed.[66]
1982: Minitel was introduced nationwide in France by France Télécom and used for online
ordering.
1983: California State Assembly holds first hearing on "electronic commerce" in Volcano,
California.[67] Testifying are CPUC, MCI Mail, Prodigy, CompuServe, Volcano Telephone, and
Pacific Telesis. (Not permitted to testify is Quantum Technology, later to become AOL.) California's
Electronic Commerce Act was passed in 1984.
1983: Karen Earle Lile (AKA Karen Bean) and Kendall Ross Bean create e-commerce service in
San Francisco Bay Area. Buyers and sellers of pianos connect through a database created by
Piano Finders on a Kaypro personal computer using DOS interface. Pianos for sale are listed on a
Bulletin board system. Buyers print list of pianos for sale by a dot matrix printer. Customer service
happened through a Piano Advice Hotline listed in the San Francisco Chronicle classified ads and
money transferred by a bank wire transfer when a sale was completed.[68][69]
1984: Gateshead SIS/Tesco is first B2C online shopping system[70] and Mrs Snowball, 72, is the
first online home shopper[71]
1984: In April 1984, CompuServe launches the Electronic Mall in the US and Canada. It is the first
comprehensive electronic commerce service.[72]
1989: In May 1989, Sequoia Data Corp. introduced Compumarket, the first internet based system
for e-commerce. Sellers and buyers could post items for sale and buyers could search the
database and make purchases with a credit card.
1990: Tim Berners-Lee writes the first web browser, WorldWideWeb, using a NeXT computer.[73]
1992: Book Stacks Unlimited in Cleveland opens a commercial sales website (www.books.com)
selling books online with credit card processing.
1993: Paget Press releases edition No. 3[74] of the first[75] app store, The Electronic
AppWrapper[76]

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1994: Netscape releases the Navigator browser in October under the code name Mozilla.
Netscape 1.0 is introduced in late 1994 with SSL encryption that made transactions secure.
1994: Ipswitch IMail Server becomes the first software available online for sale and immediate
download via a partnership between Ipswitch, Inc. and OpenMarket.
1994: "Ten Summoner's Tales" by Sting becomes the first secure online purchase through
NetMarket.[77]
1995: The US National Science Foundation lifts its former strict prohibition of commercial
enterprise on the Internet.[78]
1995: Thursday 27 April 1995, the purchase of a book by Paul Stanfield, product manager for
CompuServe UK, from W H Smith's shop within CompuServe's UK Shopping Centre is the UK's
first national online shopping service secure transaction. The shopping service at launch featured
W H Smith, Tesco, Virgin Megastores/Our Price, Great Universal Stores (GUS), Interflora, Dixons
Retail, Past Times, PC World (retailer) and Innovations.
1995: Amazon is launched by Jeff Bezos.
1995: eBay is founded by computer programmer Pierre Omidyar as AuctionWeb. It is the first
online auction site supporting person-to-person transactions.[79]
1995: The first commercial-free 24-hour, internet-only radio stations, Radio HK and NetRadio start
broadcasting.
1996: The use of Excalibur BBS with replicated "storefronts" was an early implementation of
electronic commerce started by a group of SysOps in Australia and replicated to global partner
sites.
1998: Electronic postal stamps can be purchased and downloaded for printing from the Web.[80]
1999: Alibaba Group is established in China. Business.com sold for US$7.5 million to
eCompanies, which was purchased in 1997 for US$149,000. The peer-to-peer filesharing
software Napster launches. ATG Stores launches to sell decorative items for the home online.
1999: Global e-commerce reaches $150 billion[50]
2000: The dot-com bust.
2001: eBay has the largest userbase of any e-commerce site.[79]
2001: Alibaba.com achieved profitability in December 2001.
2002: eBay acquires PayPal for $1.5 billion.[81] Niche retail companies Wayfair and NetShops are
founded with the concept of selling products through several targeted domains, rather than a
central portal.
2003: Amazon posts first yearly profit.
2004: DHgate.com, China's first online B2B transaction platform, is established, forcing other B2B
sites to move away from the "yellow pages" model.[82]
2007: Business.com acquired by R.H. Donnelley for $345 million.[83]
2014: US e-commerce and online retail sales projected to reach $294 billion, an increase of 12
percent over 2013 and 9% of all retail sales.[84] Alibaba Group has the largest Initial public offering
ever, worth $25 billion.
2015: Amazon accounts for more than half of all e-commerce growth,[85] selling almost 500 Million
SKU's in the US.
2017: Retail e-commerce sales across the world reaches $2.304 trillion, which was a 24.8 percent
increase than previous year.[86]
2017: Global e-commerce transactions generate $29.267 trillion, including $25.516 trillion for
business-to-business (B2B) transactions and $3.851 trillion for business-to-consumer (B2C)
sales.[87]

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11/29/22, 2:08 PM E-commerce - Wikipedia

2020: Government of India launched BHIM UPI digital payment interface in 2016. In the year 2020
it had 2 billion digital payment transactions.[88][89]

See also
Comparison of free software e-commerce web application frameworks
Comparison of shopping cart software
Customer intelligence
Digital economy
E-commerce credit card payment system
Electronic bill payment
Electronic money
Non-store retailing
Payments as a service
South Dakota v. Wayfair, Inc.
Types of e-commerce
Timeline of e-commerce

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Further reading
Laudon, Kenneth C.; Traver, Carol Guercio (2014). E-commerce: Business, Technology, Society
(https://books.google.com/books?id=-cgDnwEACAAJ) (10th ed.). Pearson plc.
ISBN 9781292009094. Archived (https://web.archive.org/web/20210505004149/https://books.goo
gle.com/books?id=-cgDnwEACAAJ) from the original on 5 May 2021. Retrieved 5 May 2021.
Chaudhury, Abijit; Kuilboer, Jean-Pierre (2002). E-business and E-commerce Infrastructure:
Technologies Supporting the E-business Initiative (https://books.google.com/books?id=zHoeAQA
AIAAJ). McGraw Hill Education. ISBN 9780071123136. Archived (https://web.archive.org/web/202
10505004143/https://books.google.com/books?id=zHoeAQAAIAAJ) from the original on 5 May
2021. Retrieved 5 May 2021.
Frieden, Jonathan D.; Roche, Sean Patrick (2006). "E-Commerce: Legal Issues of the Online
Retailer in Virginia" (http://jolt.richmond.edu/jolt-archive/v13i2/article5.pdf) (PDF). Richmond
Journal of Law and Technology. 13 (2). Archived (https://web.archive.org/web/20200922172841/ht
tp://jolt.richmond.edu/jolt-archive/v13i2/article5.pdf) (PDF) from the original on 22 September
2020. Retrieved 5 May 2021.
Graham, Mark (2008). "Warped Geographies of Development: The Internet and Theories of
Economic Development" (https://web.archive.org/web/20161126085903/http://geospace.co.uk/file
s/compass.pdf) (PDF). Geography Compass. Blackwell publishing. 2 (3): 771–789.
doi:10.1111/j.1749-8198.2008.00093.x (https://doi.org/10.1111%2Fj.1749-8198.2008.00093.x).
S2CID 16190907 (https://api.semanticscholar.org/CorpusID:16190907). Archived from the original
(http://geospace.co.uk/files/compass.pdf) (PDF) on 26 November 2016. Retrieved 5 May 2021 –
via Wiley Online Library.
Humeau, Philippe; Jung, Matthieu (21 June 2013). In depth benchmark of 12 ecommerce
solutions (http://docshare01.docshare.tips/files/18925/189257997.pdf) (PDF). Archived (https://we
b.archive.org/web/20210505004106/http://docshare01.docshare.tips/files/18925/189257997.pdf)
(PDF) from the original on 5 May 2021. Retrieved 5 May 2021.
Kessler, Michelle (22 December 2003), More shoppers proceed to checkout online (https://usatod
ay30.usatoday.com/tech/news/2003-12-22-shoppers_x.htm), archived (https://web.archive.org/we
b/20201231093120/https://usatoday30.usatoday.com/tech/news/2003-12-22-shoppers_x.htm)
from the original on 31 December 2020, retrieved 5 May 2021
Lowry, Paul Benjamin; Wells, Taylor Michael; Moody, Greg; Humpherys, Sean; Kettles, Degan (3
February 2006), Online Payment Gateways Used to Facilitate E-Commerce Transactions and
Improve Risk Management (https://poseidon01.ssrn.com/delivery.php?ID=0060671240310020121
020730050711020281210030670160490051251010291230911161070061030880330000181251
091121240790120781020651081000100410740390181021250870940690290230540540321010
27123099084006096096098113025008086066011113125031124019127031001124116068),
vol. 17 (published January 2006), pp. 1–48, SSRN 879797 (https://papers.ssrn.com/sol3/papers.c
fm?abstract_id=879797), archived (https://web.archive.org/web/20210505004134/https://papers.s
srn.com/sol3/papers.cfm?abstract_id=879797) from the original on 5 May 2021, retrieved 5 May
2021

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11/29/22, 2:08 PM E-commerce - Wikipedia

Kotler, Philip (2009). Marketing Management (https://archive.org/details/frameworkformark00kotl_

2) (4th ed.). Upper Saddle River, New Jersey: Prentice Hall. ISBN 9780136026600.
OCLC 1149204899 (https://www.worldcat.org/oclc/1149204899). Retrieved 5 May 2021.
Miller, Roger LeRoy; Cross, Frank B. (2002). The Legal and E-Commerce Environment Today:
Business in Its Ethical, Regulatory, and International Setting (https://www.google.com/books/?id=4
wQ9AQAAIAAJ) (3rd ed.). South-Western. ISBN 9780324061888. Archived (https://web.archive.o
rg/web/20210505004111/https://books.google.com/books/?id=4wQ9AQAAIAAJ) from the original
on 5 May 2021. Retrieved 5 May 2021.
Nissanoff, Daniel (2006). FutureShop: How the New Auction Culture Will Revolutionize the Way
We Buy, Sell and Get the Things We Really Want (https://archive.org/details/futureshophownew00
niss). New York City: The Penguin Press. ISBN 978-1-59420-077-9. OCLC 1149173925 (https://w
ww.worldcat.org/oclc/1149173925). Retrieved 5 May 2021.
Seybold, Patricia B. (2001). The Customer Revolution (https://archive.org/details/customerrevoluti
00seyb) (1st ed.). New York City: Crown Business. ISBN 978-0-609-60772-5. OCLC 1148801120
(https://www.worldcat.org/oclc/1148801120). Retrieved 5 May 2021.

External links
E-Commerce Resources (https://web.archive.org/web/20170521010809/https://www.sba.gov/man
aging-business/running-business/using-technology/ecommerce-resources), Small Business
Administration, archived from the original (http://www.sba.gov/content/ecommerce-resources) on
21 May 2017

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