Origin of Electronic Commerce/History of E-commerce & Evolution of E-Commerce

Origin of Electronic Commerce/History of E-commerce


Origin Of E-Commerce


Development of EC applications started in the early 1970s with electronic funds transfer (EFT), which refers to the computer-based systems used to perform financial transactions electronically. However, the use of these applications was limited to financial institutes, large corporations, and some daring businesses.

Electronic data interchange (EDI) was then developed in the late 1970s to improve the limitation of EFT. EDI enlarged the pool of participating company from manufacturers, retailers, services, and others. Such systems were called Inter organizational System (IOS).

An Inter organizational System (IOS) allows the flow of information to be automated between organizations to reach a desired supply-chain management system, which enables the development of competitive organizations.

From the 1990s onwards, electronic commerce would additionally include enterprise resource planning systems (ERP), data mining and data warehousing.

 The term ‘electronic commerce’ was coined in the early 1990s when Internet became commercialized and users began flocking to participate in the World Wide Web. EC applications were then rapidly expanded.

Evolution of E-Commerce

E-Commerce was introduced 40 years ago and, to this day, continues to grow with new technologies, innovations, and thousands of businesses entering the on-line market each year. The convenience, safety, and user experience of E-Commerce has improved exponentially since its inception in the 1970’s.


Paving the way for electric commerce was the development of the Electronic Data Interchange(EDI). EDI replaced traditional mailing and faxing of documents with a digital transfer of data from one computer to another.


It was apparent from the beginning that B2B online shopping would be commercially lucrative but B2C would not be successful until the later widespread use of PC’s and the World Wide Web, also known as, the Internet. In 1982, France launched the precursor to the Internet called, Minitel.

90’s To Present

In 1990 Tim Berners Lee, along with his friend Robert Cailliau, published a proposal to build a “Hypertext project” called, “WorldWideWeb.

  • 1994

 Netscape arrived. Providing users a simple browser to surf the Internet and a safe online transaction technology called Secure Sockets Layer.

Since 1995, many innovative applications, ranging from direct online sales to e-learning experiences had been developed. Almost every organization in the world has a Web site. Two of the biggest names in e-commerce are launched:Amazon.com and eBay.com.

  • 1998

DSL, or Digital Subscriber Line, provides fast, always-on Internet service to subscribers across California. This prompts people to spend more time, and money, online.

  • In 1999, the emphasis of e-commerce shifted from B2C to B2B.
  • In 2001, from B2B to B2E, e-government, e-learning, and m-commerce.
  • In 2005, social networks started to rise and so did E-Commerce and wireless applications.
Origin of Electronic Commerce/History of E-commerce & Evolution of E-Commerce

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