Saturday, June 14, 2008 . 2:17:00 PM
E-commerce success and its causesWhile some e-businesses successfully merged Internet technologies to their e-business models, some did not. Additionally, some early e-businesses followed poorly conceptualized e-business models that failed to generate sufficient revenue. A variety of other mistakes and miscalculations also contributed to the downfall of some early e-businesses.
Some e-businesses have succeeded by focusing on the main strength of Internet technologies which is moving information quickly from one place to another. Another strength of Internet technology has to offer that is utilized by successful e-businesses is the flexibility. The flexibility here is referred to being able to get information from anywhere and anytime as long as internet connection is present. Aside those, the Internet allows one to reach customers at a global extent, not just the local market. An example of a successful of E-Commerce business is http://www.ebay.com/.
eBay uses Internet technologies to bring buyers and sellers together in an online auction market space. The eBay online auction Web site was founded in San Jose, California, on September 3, 1995, by French-born Iranian computer programmer Pierre Omidyar. eBay Generates revenues from auction listings and selling fees and was profitable almost from the start of its business presence. eBay has continued to report astounding growth in both sales and profits up till today as it utilizes information technology to its maximum known potential. Wednesday, June 11, 2008 . 11:22:00 PM
The history and evolution of E-commerceE-commerce can be defined as a modern business methodology that addresses the needs of organizations, merchants, and consumers to cut costs while improving the quality of goods and services and the increasing speed of service delivery, by using Internet.
- The commercial-oriented sharing of electronic data among computers becomes possible in the 1950s. However, in the early years of computers, data formats used to be highly specialized (closed).
- The first form of e-commerce appeared in the early 1970s is a system called Electronic Fund Transfer (EFT). This enabled banks and financial institutions to transfer over secure networks large amounts of money either among themselves or with associated businesses.
- In the late 1970s, new model in business computerization was devised, namely the Electronic Data Exchange (EDI). EDI enables inter-company exchanges of documents. Since the 1980s, EDI was widely used. EDI technology has reduced costs both on the producers’ side and on the distributors’.
- In the late 1980s, electronic mail (e-mail) and groupware were widely adopted in the business world. However, both applications caused only insignificant growth of internal productivity.
- A significant change for e-commerce occurred in 1991, when the United States government allowed public access to the Internet.
- In 1992, CompuServe offers online retail products to its customers. This gives people the first chance to buy things off their computer.
- Then Netscape arrived in 1994, providing users a simple browser to surf the Internet and a safe online transaction technology called Secure Sockets Layer.
- During year 1995, two of the biggest names in e-commerce are launched: Amazon.com and eBay.com.
- After that, in 1998, Digital Subscriber Line (DSL) provides fast, always-on Internet service to subscribers across California. This prompts people to spend more time, and money, online.
- Then in 1999, retail spending over the Internet reaches $20 billion, according to Business.com.
- During 2000, the U.S government extended the moratorium on Internet taxes until at least 2005.
- Once opened for commercial utilization, the Internet was quickly accepted in business. Internet-related business thrived, the market itself expanded, followed soon by a boom of the operation infrastructure.
This shows how the evolution of e-commerce. Today, e-commerce is still one of the leading forces of economic growth. With the Internet still in its infancy, the future of e-commerce has the ability to evolve and again revolutionize the way people think about shopping.
posted by: Jwens