What Was the First eCommerce Company? eCommerce History
Today, eCommerce is one of the most profitable industries thriving with numerous players, and the market revenue is projected to reach $4.48 trillion by the end of 2023. As the world demands more of it, the key players in the industry are reciprocating it. But have we ever wondered how today's booming industry performed when it first started? It has been 40 years since someone started conducting business online, and the rest is a successful e-commerce history.
In this article, we will be discussing when and how eCommerce started and what was the first-ever eCommerce company to come to business.
The History and Evolution of eCommerce
eCommerce refers to the buying and selling of goods and services online. Thanks to the internet and advanced technology, eCommerce has revolutionized shopping and continues to shape how consumers make purchases and businesses reach customers.
The Origins of eCommerce: From EDI to Early Online Stores
The foundations of eCommerce were laid in the 1960s with the advent of Electronic Data Interchange (EDI). EDI enabled the transfer of business documents electronically between companies. Then, in the late 1970s, entrepreneur Michael Aldrich connected a television to a computer transaction processing system using a phone line to demonstrate a prototype for online shopping, which he called "teleshopping."
The first recognized eCommerce company, Boston Computer Exchange, was launched in 1982. It created an online marketplace for buying and selling used computers. Ten years later, Charles Stack launched Book Stacks Unlimited, an early online bookstore. This preceded the launch of the larger players in online commerce - Amazon and eBay in 1995.
Mainstream Adoption and the eCommerce Explosion
Several key developments in the late 1990s and early 2000s paved the way for mainstream eCommerce adoption:
- 1998 - PayPal introduced online payments
- 1999 - Alibaba founded in China
- 2005 - Amazon Prime launched with free two-day shipping
- 2014 - Apple Pay brought online payments to mobile
- 2017 - Instagram enabled in-app shopping
Today, eCommerce is ubiquitous, with businesses of all sizes embracing online stores and digital commerce. Social media and mobile have also emerged as significant eCommerce channels. In 2022, over 2 billion people purchased goods online.
The Future of eCommerce
Experts project the growth of eCommerce will continue at a rapid pace. By 2025, over 2.14 billion people are expected to buy goods and services online. Key trends shaping the future of digital commerce include:
- Mobile commerce - More transactions happening via smartphones/tablets
- Voice commerce - Using voice assistants to make purchases
- Personalization - Customizing shopping experiences to individuals
- Sustainability - Eco-friendly shipping, packaging, etc.
As technology progresses, the eCommerce sector will continue evolving to make shopping increasingly personalized, convenient and integrated into consumers' daily lives.
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FAQs
How did eCommerce start?
The first eCommerce transaction is credited to British inventor Michael Aldrich, who connected a TV to a computer processing transactions over a phone line to demonstrate "teleshopping" in 1979.
When did consumers first start buying online?
Consumers first started buying products online in 1982 with the launch of Boston Computer Exchange, an online marketplace for used computers. The first mainstream eCommerce company open to the public was Amazon, launched in 1995.
How has mobile impacted eCommerce?
Mobile has greatly expanded eCommerce accessibility and sales. Over 70% of digital commerce now happens on mobile devices. Features like in-app shopping and mobile wallets facilitate purchases on the go.
What is driving future eCommerce growth?
Key trends fueling further eCommerce growth include personalized product recommendations, voice-assisted shopping, faster shipping, and sustainable packaging.
How big is the current eCommerce market?
Global eCommerce sales surpassed $4.2 trillion in 2020. Around 2 billion people worldwide purchased goods online that year.
What does the future hold for online shopping?
eCommerce is projected to keep growing rapidly. Over 2 billion people are forecasted to shop online by 2025, with innovations enhancing convenience, customization and sustainability.
How can businesses benefit from eCommerce?
Selling online allows businesses to reach more customers globally, stay open 24/7, collect data to improve operations, and scale growth more easily than brick-and-mortar retail.
