Electronic Commerce: How it has changed over time

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The ways and ways that human beings use to carry out our daily tasks have evolved over time: how we transport, communicate, and interact, and how we consume. Electronic Commerce came not only to stay but to change our lives and revolutionaries in an unprecedented way.

It can be said that the first samples of what we know today as E-Commerce or Internet Commerce were seen in 1920 in the United States with the appearance of catalog sales, which revolutionized the traditional form of distribution. This was the first way to buy without first physically seeing the product; It worked by means of illustrative photos and allowed to sell in rural areas with difficult access.

In 1960, Electronic Data Interchange created the ” EDI “, a system that allowed companies to carry out electronic transactions and exchange commercial information.

In 1970, the first commercial relationships emerged in which computers were used to transmit data. In this way, in 1980 the catalog trade was modernized with the help of television through “telesales”, which showed products more realistically and highlighted their most important attributes and characteristics. This type of direct sale was made through telephone calls and payment was made through credit cards.

In 1979 Michael Aldrich, an English businessman, invented “online shopping” with which he enabled the process of online transactions between consumers and companies, or between one company and another. In 1989 technology would have its greatest boom, and therefore electronic commerce, when the “www” or World Wide Web appeared. The web, created by the English Tim Berners-Lee, completely changed the way of communication and marketing in the world.

In the 90s, with the active Internet, electronic commerce grew like never before: in 1995 Amazon and eBay were born, which until now remain active. In this same year, the members of the G7 / G8 created the initiative of a global market for SMEs, this platform aimed to increase E-commerce among companies around the world, and it worked.

Starting in 1995, history changed forever

In 1997 the Dell company exceeded one million dollars in online sales.

In 2002 eBay bought PayPal and became popular “the fastest and safest way to send money, make payments online, receive money or set up a merchant account”, which facilitates purchases in electronic stores.

In 2007 Apple launched the iPhone, and a year later Google does the same with its version on Android, thus a new, easy, fast, and effective way of accessing E-commerce stores is born.

We have witnessed the vertiginous growth of electronic commerce in the last decade and we see how Amazon has taken over the industry through good service, personalization, and speed in its deliveries. This model has been the example for millions of businesses worldwide, which implement new strategies such as Dropshipping, data science, and Content Marketing.

Impact of Electronic Commerce: let’s review some statistics

79% of US consumers said that free shipping would increase the odds of shopping online. ( Walker Sands)

Only 15% of US consumers said online retailers always offer shipping options that meet their expectations for speed of delivery, compared with 30% reporting the same for Amazon. (Walker Sands)

The Electronic Commerce industry continues to grow. With the passage of time, new ways of pleasing customers, making their lives easier, and streamlining their online purchases are born. The industry has grown so much that it is necessary to divide it into types to understand it and understand the strategies and modalities that will ensure success.

Types of Electronic Commerce

According to the client

  • B2B: This is Business to Business, it is the model that is sold from business to business, where our company sells electronically to other companies that require the product or service.
  • B2C: Business-to-Consumer in this type of eCommerce, the online store sells directly to the consumer. A purchase catalog is presented where the customer selects the products, pays the required amount through a virtual POS or other forms of payment, and the products are sent through a logistics agency or directly electronically.
  • B2B2C: In this model, B2B (business to business) and B2C (business to consumer) are grouped, that is, a company sells to the two market segments from the same digital platform.
  • C2C: In it, a consumer interacts with another through an online platform, which facilitates the connection and transactions between buyers and sellers.

According to the Business Model

Online Advertising: Income is obtained through advertising, for which the page must have a high level of traffic. Ads can be displayed in the form of a banner, by user targeting, by advertising targeting site content, or by remarketing. For this type of business model, many pages use Google Adsense, Inbound Marketing Agencies, or other systems that allow them to sell advertising space.

Subscription: In this business model, the client pays to subscribe to certain content, products, or services on the site that have a recurring purchase pattern. Whoever establishes this type of business has customer loyalty as the main marketing objective. The most relevant advantage is that it allows obtaining income in advance and sales can be scheduled periodically. To be a scalable business it is essential to work with automation.

Affiliation: In this model called affiliate marketing, the website directs user traffic to third parties, who sell their products or services and give the site a percentage of purchases or a CPL of users who register. It does not require investment, nor inventories nor is it necessary to offer guarantees.

Online Store: It is the most classic form of electronic commerce, where products or services are offered directly to the end customer. You have all the control and responsibility to show the product, charge, prepare the purchase, and send the user what you have paid for.

Freemium: A free product or service is offered in a functional but limited version, with the possibility of expanding its features through a paid version.

Crowdfunding: It is a collaborative model between users and the platform, to establish a network that allows financially financing a project. Generally, the platform receives a percentage for managing the finances of the project.

Crowdsourcing: In this model, tasks are outsourced to third parties, who offer them open to members of the community. The platform charges a commission for connecting the contractor with the contractor.