E-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.
In the early 1970, E-commerce applications were start developed with innovation such as:
Electronic Funds Transfer (EFT)
The funds can be transfer electronically from one organization to another EFT was limited to large corporation, financial institutions, and other daring businesses.
Electronic Data Interchange (EDI)
EDI used to electronically transfer routine documents which expanded electronic transfers from financial transactions to other types of transaction processing. It enlarged the pool of participating companies from financial institutions to many types of businesses such as retailers, manufacturers, services.
Interorganizational System (IOS)
A system which allows the flow of informations to be automated between organizations in order to reach a desired supply-chain management system that enables the development of competitive organizations. In year 1984, the term ecommerce mean 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 provide an opportunity for users to exchange business information and make electronic transactions.
One of a America website name Compuserve has offers online retail products to its customers in 1992. Moreover, this service gives people the first chance to buy products off their computer.
Nestcape was exist in year 1994. It has providing users a simple browser to surf the Internet and a safe online transaction technology called Secure Sockets Layer.
One year later, two of the biggest names in e-commerce are launched which are Amazon.com and eBay.com. These websites become more popular and famous for the sellers and buyers because sellers can post their product details and photos in the website and buyers easy and convenience to launch it.
In year 1998, Digital Subscriber Line (DSL) was created and provided fast, always-on Internet service to subscribers across California. This prompts people to spend more time, and money, online.
Retail spending over the Internet reaches $20 billion regarding Business.com in year 1999.It shows that more people are starting to use the internet for their daily transactions.
The U.S government extended the moratorium on Internet taxes until at least 2005. Nowadays, the largest electronic commerce is Business-to-Business (B2B) which is the businesses involved in B2B sell their products and services to other businesses. In 2001, this form of e-commerce had around $700 billion in transactions.
"Web 2.0" refers to a second generation of web development and design, that facilitates communication, secure information sharing, interoperability, and collaboration on the World Wide Web. Web 2.0 concepts have led to the development and evolution of web-based communities, hosted services, and applications such as social-networking sites, video-sharing sites, wikis, blogs, mashup and folksonomies.
Web 2.0 websites typically include some of the following features or techniques:
Search
The ease of searching information through keyword search.
Links
Ad-hoc guides to other relevant information.
Authoring
The ability to create constantly updating content over a platform that is shifted from being the creation of a few to being constantly updated, interlinked work. In blog, content is cumulative in that posts and comments of individuals are accumulated over time.
Tags
Categorization of content by creating tags such as simple, one-word user-determined descriptions to facilitate searching and avoid rigid, pre-made categories.
Extensions
Powerful algorithms that leverage the Web as an application platform as well as a document server.
Signals
The use of RSS technology to rapidly notify users of content changes.
Examples of Web 2.0
Web 1.0 | Web 2.0 |
DoubleClick | Google |
AdSense Ofoto | Flickr |
Akamai | BitTorrent |
mp3.com | Napster |
Britannica Online | Wikipedia |
personal websites | blogging |
evite | upcoming.org and EVDB |
domain name speculation | search engine optimization |
page views | cost per click |
screen scraping | web services |
publishing | participation |
content management systems | wikis |
directories (taxonomy | tagging ("folksonomy") |
stickiness | syndication |
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