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

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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;

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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.

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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

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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 re-

used, 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.

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References

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