The eCommerce Revolution
Usmaan Syed Waseem Mujtaba
996 843 064
Prepared for
Professor Christopher Evan Jones
Tuesday, March 16, 2010
CCT260
I.
eCommerce
Commonly known as eCommerce, Electronic Commerce is one of the world’s largest, and
fastest growing economic sectors. Simply defined, eCommerce is “the process of buying, selling,
or exchanging products, services, or information via computer networks.” (Turban) The products
and services offered through the World Wide Web are vast and range from the occasional
purchase of a NBA basketball game ticket to an everyday item like groceries. eCommerce is one
the most important reasons the internet has emerged to be as successful as it is today.
eCommerce was first developed in the 1970s and it mainly consisted of EFT (electronic funds
transfer) allowing funds to be routed electronically from one organization to another, EDI
(electronic data interchange) allowing documents to be transferred, and IOS (interorganizational
system) an automated flow of information between organizations. Since the beginning of
eCommerce, it has greatly expanded. EDI today is as simple as sending an email and EFT is
present in every online bank. (Janice)
The three largest eCommerce models today are B2C (business to consumer), C2C (consumer to
consumer), and B2B (business to business), of which B2B is the largest. Other eCommerce
models include G2C (government to constituent), C2G (constituent to government), G2B
(government to business), and B2G (business to government). (Gauvin)
II.
Evolution of eCommerce
2|Page
In 1984, EDI (electronic data interchange) was established through ASC X12 allowing
companies to complete transactions reliably among one another. This marked the beginning of
eCommerce as we know it today, it made it possible to send funds for purchased goods or
services. In 1990 the World Wide Web was created and almost immediately in 1991 commercial
businesses were allowed to operate over the internet paving the way for eCommerce. In 1994
Netscape was released. This browser had an online security technology called Secure Sockets
Layer which secured the information sent over the World Wide Web. The following year,
arguably two of the biggest eCommerce websites were launched; ebay.com and amazon.com. In
1999, Business.com reported retail spending over the internet crossing $20 billion. (Sharma)
eCommerce began by large retailers offering their customers another outlet to their products. To
this day, this concept of B2C stands, and is a large part of the eCommerce sector but two other
models of eCommerce have become more popular; B2B and C2C. Businesses are using the web
to sell their products and services to other businesses through secure automated systems.
Consumers have also joined the eCommerce frenzy through websites like ebay.com, kijiji.com,
and are selling their products and services. Today the internet is used for anything and everything
one can imagine, it has changed the way we operate and this is said to be the beginning.
III.
eCommerce in terms of Space, Time, Self, & Knowledge
Space
Space as an element of the web relates to the physical space that has either grown or shrunken
between individuals due to the web. The effect that eCommerce has had on space is apparent;
3|Page
people do not have to go out of their way to find anything anymore. The “treasure hunt” for that
rare memorabilia is eliminated by ebay.com, or kijiji.com, or many, many other similar websites.
eCommerce provides the consumers the option of doing all their shopping from the comfort of
their home, pay through their credit or debit card via PayPal or other payment methods, and have
their product ship to their doorstep.
Time
Time as an element of the web is the measure of the time either spent online, the time we expect
things to take, and such. When put in the context of eCommerce, time is the measure of the time
the product takes to get to the destination after the payment, or the time we expect things to take
in order for us to find and purchase it. Due to eCommerce, the society has become more
impatient and wants everything instantly. Through emails and live updates, contact can be made
at any time of the day, as well as purchases, they can also be made at any time of the day.
Self
Self in terms of an element of the web is defined as having an identity on the web, it can be as
ludicrous as one wishes or as true to their identity as one wants. With eCommerce, retailers and
consumers have a reputation and history which follows them everywhere. Consumers can check
the reliability of any seller with a click of a few buttons. On popular websites like eBay and
Amazon, there is a feedback and rating system where consumers are frowned upon when they do
not accept this social norm. Due to the numerous retailers with the exact same product, this
reputation must be upheld otherwise there is a huge chance of losing future buyers.
4|Page
Knowledge
Knowledge is the data that individuals get off the web, and the information that they consume in
their time online. Knowledge relating to eCommerce would be the ability that consumers have to
research on the retailers. The web keeps a history of all the sales and purchases that a business or
a user makes online. This feedback and rating system follows users and allows consumers to be
better aware of the person they are dealing with on the other end. Users can also use the web to
find reviews, tutorials, and such research before making a purchase.
IV.
Drawbacks of eCommerce
Although eCommerce may seem like a perfect market and a utopian way of doing
business, there are many issues, challenges and opportunities related to doing business on the
web. . There are two main issues that are associated with eCommerce; legal and security issues.
Often doing business on the web can result in legal issues relating to property concerns,
copyright, privacy and trademarks. (Nasir) These security issues, as well as many others, must
be maintained regularly and encrypted to a level of security where both the merchant and
consumer feel comfortable exchanging information. (Richardson) Privacy is handled by
encryption. Often digital certificates are also used to ensure privacy and authentication when
transferring data over the web. (Holcombe) Today, there are over 100 countries that have
Internet access, over 20 million Internet hosts worldwide and over 100 million people with the
access to the World Wide Web. This rapid growth of the use of the web raises a number of new
regulatory issues and legal concerns. Internet laws are very complex and have a broad
spectrum of views. One key component of any website dealing with eCommerce is
5|Page
incorporating the business, copyright rules and trademarks. (Silver) A copyright is an important
factor in eCommerce, as its “important when you obtain content for your site, and in the
protection of your site's content.” (Silver) However, a trademark allows one to register their
business so that a “consumer can correctly identify the goods and service you produce, as well
as distinguish a reputable name that can be represented so that your company name is not reused, so there will be no legal issues where anyone can sue you.” (Silver)
V.
Future of eCommerce
eCommerce has become a social norm. It is widely accepted, especially in the developed world
where there is readily accessible use of the web. For many, shopping online and performing
payments online has become a routine task at work or at home. However, we’ve only just began
"During the next 10 years we anticipate seeing more ease of use, even better technology,
dramatically improved visibility as well as a wider array of solutions for both online buyers and
merchants." (LeClaire) Due to the rapid increase in broadband speeds and access to the internet
on our mobile devices, eCommerce will constantly grow. Purchases that first had to be made in
the store, then were able to be made from a computer, now these same purchases can be made
on-the-go from any mobile device. In 2008, “US eCommerce and Online Retail sales projected
to reach $204 billion, an increase of 17 percent over 2007.” (Sharma) As the internet grows
technologically and in terms of acceptance around the world, eCommerce will continue to
prosper and grow accordingly.
6|Page
References
Cox, Beth. "The E-commerce Revolution." ECommerce-Guide. 25 Apr. 2002. Web. 16 Mar.
2010. <http://www.ecommerce-guide.com/news/trends/article.php/1016231>.
E-commerce - Evolution. Dir. Sandeep Chagger. E-commerce - Evolution. 27 Feb. 2007. Web.
16 Mar. 2010. <http://www.youtube.com/watch?v=LW4X3b_j0eE>.
"Ecommerce Revolution, Online Marketing." Ecommerce Journal. Ecommerce Revolution,
Online Marketing | Ecommerce Journal. 15 Oct. 2008. Web. 16 Mar. 2010.
<http://www.ecommerce-journal.com/hotties/ecommerce_revolution_online_marketing>.
"Ecommerce Security Issues: an Introduction." Online Selling: Comprehensive Guide to
Ebusiness and Digital Marketing. Web. 16 Mar. 2010. <http://www.ecommercedigest.com/ecommerce-security-issues.html>.
"E-commerce Timeline | Timetoast." Timetoast Timelines | Create Timelines, Share Them on the
Web. Web. 16 Mar. 2010. <http://www.timetoast.com/timelines/5448>.
Hazari, Sunil. The Evolution of ECommerce in Internet Time. Rep. Web. 16 Mar. 2010.
<http://www.sunilhazari.com/education/documents/ecomeval.htm>.
Janice, Loke. "The History & Evolution of E-Commerce." Web Log post. The History &
Evolution of E-Commerce - ECommerce Site. 11 June 2008. Web. 16 Mar. 2010.
<http://ecommercesite.wordpress.com/2008/06/11/the-history-evolution-of-ecommerce/>.
Klein, Daniel V. "The Evolution of E-Commerce." Lecture. Daniel V. Klein. 11 July 2002. Web.
16 Mar. 2010. <http://www.klein.com/dvk/publications/ecommerce.pdf>.
Kuenn, Arnie. "E-Commerce Today: The Evolution of the Online Store." SmallBusinessNewz.
31 July 2008. Web. 16 Mar. 2010.
7|Page
<http://www.smallbusinessnewz.com/expertarticles/2008/07/31/e-commerce-today-theevolution-of-the-online-store>.
LeClaire, Jennifer. "The Evolution of E-Commerce." E-Commerce Times. 02 July 2005. Web. 16
Mar. 2010. <http://www.ecommercetimes.com/story/40249.html>.
Richardson, Tim. Description and Evaluation of Different Types of E-Payment Systems. Rep.
Web. 16 Mar. 2010. <http://www.witiger.com/ecommerce/paymentmatrix.htm>.
Rosenlund, Dave. "E-Commerce Companies Must Globalize to Thrive." E-Commerce Times. 04
Nov. 2005. Web. 16 Mar. 2010.
<http://www.ecommercetimes.com/story/46841.html?wlc=1257745228>.
Sharma, Ravikant. "E-Commerce." Web Log post. E-Commerce: Timeline. Web. 16 Mar. 2010.
<http://ravikant83.blogspot.com/2009/04/timeline-1990-tim-burners-lee-writes.html>.
"What Is Ecommerce?" Domain Names, Web Hosting and Online Marketing Services | Network
Solutions. Web. 16 Mar. 2010. <http://www.networksolutions.com/education/what-isecommerce/>.
8|Page