The history and evolution of E- Commerce

What is E-commerce?

E-commerce(EC) is the process of buying , selling , transfering , or exchange product, services, information via computer networks, including the internet.

The Evolution of E-Commerce

E-Commerce were first developed in the early 1970s with innovations like:

Electronic funds transfer (EFT) - funds can be routed electronically from one organization to another.

Electronic data interchange (EDI) – used to electronically transfer routine documents, which expanded electronic transfers from financial transactions to other types of transaction processing.

Interorganizational system (IOS) – a system which allows the flow of information to be automated between organizations in order to reach a desired supply-chain management system, which enables the development of competitive organisations.

Evolution event of EC


1984
EDI, or electronic data interchange, was standardized through ASC X12. This guaranteed that companies would be able to complete transactions with one another reliably.

1992
Compuserve offers online retail products to its customers. This gives people the first chance to buy things off their computer.

1994
Netscape arrived. Providing users a simple browser to surf the Internet and a safe online transaction technology called Secure Sockets Layer.

1995
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.

1999
Retail spending over the Internet reaches $20 billion, according to Business.com.

2000
The U.S government extended the moratorium on Internet taxes until at least 2005.

2004
Web 2.0 was coined by O'Reilly Media to a supposed second generation of Internet based services that let people to collaborate and share information online in perceived new ways- such as social networking, wikis, communication tools and folksonomies.

Video : Evolution of E-commerce

An example of an E-commerce failure

A failure E-commerce Business- kozmo.com

Nowadays, many company and businessmen have conducting businesses through e-commerce. There are many successful company that generate profit and receive recognition through e-commerce such as e-bay,Amazon and Dell Corporation. Although there are many company that success through doing business online, there are some example of failure such as e-toy.com and kozmo.com.

Kozmo.com was a venture-capital driven online company that provide free one hour delivery of anything from DVD rentals to Starbucks coffee in United States. The founders of Kozmo.com were young investment bankers Joseph Park and Yong Kang in New York City.

Kozmo.com had a business model that promised to deliver small goods free of charge, typically by using bicycle messengers. Its headquarters were located in New York City. The company raised about $250million, including $60 million from Amazon.com and $28 million from a group of investors which included Flatiron Partners, Oak Investment Partners and Chase Capital Partners.

Factors of Failure:

Kozmo.com had raised more than $250million, but the company was unable to generate enough revenue to cover its costs. In 1999, the company had $3.5million revenue, compare to $26.4 million losses. The problem occurred when its business model included offering a costly delivery home delivery service for free. This offer covered a very small order such as DVD and pack of gum which it was impossible to turn a profit. As a result, it made the customer satisfied and excited, but it drew losses to the company. Although Kozmo.com was profitable in four cities, there were seven more cities that made losses.

Real world case: Google is changing everything

Google has created services and tools for the general public and business environment alike; including Web applications, advertising networks and solutions for businesses.Google is known primarily for its search engine and its related targeted advertising tools. In my opinion, Google had make our life and work become more easier and we can accomplish our tasks in more effective and efficient ways. Nowadays, Google had organize the world's information and make it universally accessible and useful to the users.

Google had offered several free Web-based application that enable people to organize their own information and make it more easily accessible to others via the Web. Users can sort data and take advantage from those applications. Google also had entered the enterprise market by providing search technology to larger organizations. An enterprise search software had launched to enables the enterprise specific content across the enterprise to be indexed, searched, and displayed to authorized users. This technologies had solved the crucial problems of many large enterprise which is wish to improve their filling system and contact with their business partners.

In my opinion, Google still can work hardly and try to expand their services more widely in order to fulfill the needs of different levels of target markets. By keep on being innovative and creative can make Google become a more well known and successful