Whatec
Whatec
Commerce
Marketing 932
E-Commerce
What is E-Commerce?
• E-Commerce can be defined as …
• The conduct of selling, buying, logistics, or other
organization-management issues via the WEB.
• OR
• Technology mediated exchanges between parties
(individuals and/or organizations) as well as the
electronically based intra- or interorganizational
activities that facilitate such exchanges.
Growth of E-Commerce
2002
1st Q
$743.8B
2000 2001 2002est
$28.91B $35.87B $51.48B
1996
$700M
History of E-Commerce
• Background
E-commerce actually began in the 1970s when larger
corporations started creating private networks to share
information with business partners and suppliers.
• This process, called Electronic Data Interchange (EDI),
transmitted standardized data that streamlined the
procurement process between businesses, so that paperwork
and human intervention were nearly eliminated.
• EDI is still in place, and is so effective at reducing costs and
improving efficiency that an estimated 95% of Fortune
1,000 companies use it.
History of E-Commerce
• Prodigy was running text
ads and selling flowers in
the early '80s
• The first documented
Online sale in 1994 was
what?
A CD
History of E-Commerce
• Early EC was pioneered by Internet companies that
didn't (and still don't) perform traditional retail.
Called Pure Plays.
– such as Amazon.com and CDNow.
• More recently click and mortar stores have moved
online
– like Barnes and Noble, Best Buy, the Gap, and Wal-Mart
History of E-Commerce: Amazon.com