Overview

In this module, we will look at the history of eCommerce in terms of waves. Then we will transition into the advantages of eCommerce over traditional retailing and then compare and contrast B2B and B2C in terms of e-Commerce.

History of e-Commerce?

Electronic commerce is the use of modern technology, notably Internet and Web technologies, to facilitate more efficient business operations for people, companies, and other organizations. The adoption of electronic commerce is happening in waves.

Between 1995 and 2003, the first wave of electronic commerce experienced a period of explosive development and innovation as many businesses competed for a first-mover advantage. During this time, a variety of revenue models and commercial strategies were extensively tested, mainly in the United States.

The second wave, which spanned from 2004 to 2009, saw an increase in electronic commerce on a global scale because to advancements in Internet and Web technologies. As content companies accepted piracy and created plans for thriving in the internet environment, the distribution of digital products increased drastically. Instead of trying to get a first-mover advantage, more and more businesses are adopting a smart-follower strategy.

Beginning in 2010, a third wave of online business is taking advantage of the critical mass of mobile users who have robust smartphones and tablets and are eager to conduct transactions and take part in social networking. Additional traits of the third wave include a rise in the involvement of smaller companies, a rapid expansion of electronic commerce in populous developing nations, sophisticated analysis of the vast amounts of data produced by electronic commerce activities, and a growing integration of tracking technologies into business processes.

Although the amount of business conducted online has fluctuated with the state of the overall economy, it has a long history of routinely surpassing traditional business activity. Using electronic commerce, some businesses have been able to develop brand-new goods and services, while others have enhanced the distribution, marketing, and promotion of already-existing goods and services.

Additionally, businesses have discovered numerous methods to use electronic commerce to enhance their purchasing and supply activities, find new clients, and run their financial, administrative, and human resource management operations more successfully. Businesses can lower transaction costs with electronic commerce or generate network economic effects that can increase revenue potential. Electronic commerce presents both a wealth of potential and a plethora of obstacles due to its fundamentally global nature. Businesses involved in worldwide electronic commerce need to be aware of the trust, linguistic, cultural, infrastructure, and legal difficulties that come up when conducting business internationally.

How eCommerce has been affected by Covid is remarkable read this 2022 Forbes article: E-Commerce Sales Grew 50% to $870 Billion During The Pandemic and discuss it with the rest of the class.

Read the article, “Advantages of Ecommerce ” simplifies these advantages of E-Commerce and be prepare to discuss as a whole class discussion. 

When comparing and contrasting B2B and B2C as it relates to e-commerce the following videos highlight those key distinctions.