Electronic Commerce in Private Purchasing
Introduction of Ecommerce
I guess you can say that ecommerce started back in the 70’s with EFT (Electronic Funds Transfer), in the 80’s with EDI (Electronic Data Interchange). The 90’s around 1995 is when the internet move from the federal sector to commercial sector when NSF (National Science Foundation) decommissioned NSFNET and move assets to vBNS (Very-High-Speed Backbone Network Services) which serves as a testing ground for the next generation of internet technologies, which allow ISP (Internet Service Providers) to develop. After the internet was develop we had an explosive growth mostly in “Dot Coms” ventures many professional left the major firm and job security to join start ups for the promise of millions of dollar. In the mid 2000 when the NASDAQ collapsed in March hundreds of thousands of people lost their jobs, stock values plummeted and thousand of company filed bankruptcy, downsized or were taken over by competitors. The subsequent stock market crash caused the loss of $5 trillion in the market value of companies from March 2000 to October 2002. By the early 2003 companies that were well-conceived internet based companies were proving their values, consumers became confidence in buying over the internet and business began to realize the internet can create true operation efficiencies and increase profit. The explosion in the use of the Internet has paved the way for several path-breaking innovations. One of the most interesting and exciting aspects of this evolution is the emergence of electronic business (e-business) as a mainstream and viable alternative to more traditional methods of businesses being conducted today. E-business is defined as the process of using electronic technology to do business. It is the day and age of electronic business. Also the structure of the Web is rapidly evolving from a loose collection of Web sites into organized market places. The phenomena of aggregation, portals, large enterprise sites, and business-to-business applications are resulting in centralized, virtual places, through which millions of visitors pass daily. Ecommerce redefines the very foundations of competitiveness in terms of information content and information delivery mechanisms. Flows of information over international networks have created an electronic market-space of firms that are learning to exploit business opportunities. E-business has become standard operating procedure for the vast majority of companies. Ecommerce is the subset of e-business that focuses specifically on commerce. Commerce is the exchange of goods and services for other goods and services or for cash payment. There are several different types of ecommerce Business-to-Business (B2B), Business-to-Consumer (B2C), Business-to-Government (B2G), Consumer-to-Consumer (C2C) and Mobile commerce (m-commerce). Since commerce is clearly a sort of business, all the keys to success for e-business automatically apply for ecommerce also. The Top 5 ecommerce countries are: USA (343 billion US$), China (110 billion US$), UK (125 billion US$), Japan (128 billion US$) and Germany (47 billion US$). Forrester Forecast: Online Retail Sales Will Grow To $250 Billion By 2014
Online retail sales aren’t growing at the torrid pace they once were, but they continue to grow steadily. Forrester Research put out a new five-year forecast today predicting that e-commerce sales in the U.S. will keep growing at a 10 percent compound annual growth rate through 2014. It forecasts online retail sales in the U.S. will be nearly $250 billion, up from $155 billion in 2009. Last year, online retail sales were up 11 percent, compared to 2.5 percent for all retail sales. In Western Europe, Forrester expects a slightly faster 11 percent growth rate for online retail sales, going from $93 billion (68 billion Euros) in 2009 to $156 billion (114.5 billion Euros) in 2014....
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