The National Science Foundation

Published Date: 02 Nov 2017

History of ecommerce dates back to the invention of the very old notion of "sell and buy", electricity, cables, computers, modems, and the Internet. Ecommerce became possible in 1991 when the Internet was opened to commercial use.⑴ The National Science Foundation (NSF) lifts restrictions on the commercial use of the NET, clearing the way for e-commerce. Since that date thousands of businesses have taken up residence at web sites.⑵

At first, the term ecommerce meant the process of execution of commercial transactions electronically with the help of the leading technologies such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT) which gave an opportunity for users to exchange business information and do electronic transactions. The ability to use these technologies appeared in the late 1970s and allowed business companies and organizations to send commercial documentation electronically.⑴ In 1979, Michael Aldrich invents online shopping giving the "concept of teleshopping" which revolutionizes the way businesses happen⑵.

In 1994, Netscape unveils SSL encrypt. Yahoo is renamed at that time. Online services for processing began to appear. It is a push factor that the first bank opens. After that, Amazon. Com starts its business. It means online business is become acceptable for the business. In late 1998s, PayPal occur that pay service is debts. Google founds e-commerce’s potential. So they pay attention on it. Yahoo opens its first online store. Then, credit card companies create security standards. Normal people can do online shopping. After 20 century, e-commerce into rapid development period.

2. Introduction

Electronic commerce is commonly known as e-commerce or EC. It is refers to trading activities and service activities in electronic transaction on the internet, or the enterprise internal network and value-added network. These activities change traditional business activities into various aspects, like networking. E-commerce including e-currency exchange, supply chain management, electronic trading market, Internet marketing, online transaction processing, electronic data exchange, inventory management and automated data collection systems. In the process, it will use information technology including the Internet, extranet, e-mail, electronic catalogs and mobile phone. In general, e-business is the electronic entire business activities, also refers to the application of computer and network technology and modern information communication technology according to certain standards, the use of electronic tools to realize the exchange of business and administrative operations.

There is a wild range of e-commerce. Generally it refers to the transactions or the exchange of information through the network, such as online shopping, pay expenses between the companies. Basically it can be divided into business to business (B2B), business to consumers (B2C) and consumers to consumers (C2C). B2B e-commerce is subset of e-commerce that conducted between 2 companies. B2B e-commerce is a useful tool for connecting business partners in a virtual supply chain to cut resupply times and reduce cost. B2C is a form of e-commerce in which customers deal directly with an organization and avoid intermediaries. ⑶C2C is a subset of e-commerce that consumers can directly sell products to other consumers. As more and more people use internet, the consumption patterns are changing. Online shopping and use credit card to pay bills are become more and more popular.

3. Real world application

3.1 Consumer to consumer

C2C model appears marked by eBay establish. C2C model is a transaction between consumers through Internet. In recent year, C2C e-commerce company builds the platform for both buyers and sellers as operation mode. Company prorates the transaction fee during processing. Or they provide a platform for normal people to open an online shop, which can earn membership fee from consumers. There are three basic elements of retailer e-commerce are information flow, logistics and cash flow. Therefore, the main problems are credit trading and risk control. The internet breakthrough geographical limitations, the world become a huge "pie". Internet is a virtual world which decided C2C trading has a high risk. So eBay come up with Paypal, and Taobao has Alipay. Using these methods improve a crisis of confidence.

Taobao Marketplace is the most popular C2C online shopping destination in China. Its mission is to foster a comprehensive e-commerce ecosystem that will provide partners and consumers with the best user experience possible. With more than 800 million product listings and more than 500 million registered users as of June 2012, Taobao Marketplace is one of the world’s top 20 most visited websites*. In 2012, the combined gross merchandise volume (GMV) of Taobao Marketplace and Tmall.com exceeded RMB1 trillion.⑷

3.2 Business to consumer

B2C model is one of the earliest e-commerce in China, which marked by 8848 Online shopping formal operations. B2C refers to enterprise use internet to provide consumers a new shopping environment- the online store. Customers shopping and pay online through the network. This mode saves customers time and space that improve efficiency of transaction, especially to saving busy office workers’ precious time. However, the characteristics of product feature are obviously that is confined to some specific goods. Such as books, audio and video products, digital products, flowers, toys and so on. These goods require lower levels of listen, touch, smell and feel experience. Some unsuitable products like clothing, stereo equipment perfume that need consumers’ specific sensory experience in online sales. Of course, some consumers identify without try and decide to purchase a particular brand.

So far, two of the successful companies in B2C market are Dangdang and Amazon. These companies are selling special goods. The payment of B2C is combined of cash on delivery and online payment. Dangdang.com is a Chinese shopping website belongs to Beijing Dangdang Information T Technology Limited Company. Books, adios and video products are mainly sold to people who probably don’t have enough time to shopping in shop. It also sells small appliances, toys, game cards and other kinds of commodities. By now, Dangdang was ranked as the No. one online bookstore in China.

3.3 Business to business

Compared with B2C and C2C, B2B should be the most profitable of e-commerce business model in China. B2B model gathered different corporate together through the Internet and become a vast ocean of information. Buyer and seller can choose trading partners and use the Internet to complete the transaction. Efficiency has been raised greatly since e-commerce appeared. It shows in many aspects, like transportation, information flow. The most enthusiastic promoters of e-commerce are retailers. They employ e-commerce to better understand consumer information and formulate market strategy correctly and timely. As a result, retailers can check accuracy of schedules, planned works and materials, reduce overstock. They improve efficiency, reduce costs, and get greater profits through the network.

A typical example of B2B is Alibaba.com. Company launched in 1999, Alibaba.com International (www.alibaba.com) is the leading global e-commerce platform for small businesses around the world. It aims to be the go-to English-language platform for cross-border trade and help small businesses worldwide expand to overseas markets. As of June 30, 2012, the platform had 29.4 million registered users from more than 240 countries and regions and showcased 2.5 million supplier storefronts.â‘·

4. Future trend

Future ten years of Internet will be electronic commerce era; e-commerce will drive economic development. As e-commerce earning continues to growth, foreign capital frequently interposed in e-commerce space. In the past year, China’s e-commerce industry has achieved unconventional and high-speed development. Either industry Website or comprehensive website had a growth profit rate of 50% in China. The Internet survey shows that the development of China’s Internet industry has a solid user foundation. With rapid economic growth and stock market continue funding sought after, the commerce department predicted that there will generating 70%of trade volume through e-commerce in next ten years. All this indicates that e-commerce will soon become one of the most important economic phenomena in the world, and essential mode of the industries of all countries.

The search engine will become the foundation of e-commerce, and the social networking will become the cornerstone of e-commerce. Search engines will cooperate with e-commerce, which can increase effects of business information search. For e-commerce, working with search engines can reduce the cost of information transaction, and increase online sales. As searching technology advances, not only users will have more choice, but also can find goods rapidly and correctly. More deeply, it can make the reason, a more scientific decision-making. Such decision would raise the opportunities for users to buy the most suitable merchandise. In addition, based on searching platform, sellers will have a broader rang to display their products. In this way, it will improve cooperates’ image. Due to both sellers and buyers find a more suitable chance than before, which can influences their online sales. As a result, they will have a better performance.

Modern technology will catalyze tremendous economic growth in e-commence filed. E-commerce will try experimenting with combinations of these get the function that consumers want. The customer’s requirements are more demanding than ever before. Customer will use 3D technology to check how products look on them or mach with related goods. Perhaps sellers will provide consumer with another form of visualization. Such designing that meet the requirements in current design process would be detected simpler and more direct-viewing by using these modern technology.