{"id":188227,"date":"2024-02-21T18:21:14","date_gmt":"2024-02-21T18:21:14","guid":{"rendered":"https:\/\/www.techopedia.com\/?post_type=definition&p=188227"},"modified":"2024-02-21T18:21:14","modified_gmt":"2024-02-21T18:21:14","slug":"e-commerce","status":"publish","type":"definition","link":"https:\/\/www.techopedia.com\/definition\/ecommerce","title":{"rendered":"E-Commerce"},"content":{"rendered":"

What is E-Commerce?<\/span><\/h2>\n

As the world has become increasingly digitalized, e-commerce has become central to modern business, revolutionizing the way goods and services are bought and sold by leveraging the Internet as a sales platform.<\/p>\n

Global e-commerce sales are forecast to climb by 9.4% in 2024 to $6.3 trillion \u2013 accounting for more than 20% of total retail sales, according to eMarketer<\/a>. This could rise to more than $8 trillion by 2028, with a 23% share of retail sales.<\/p>\n

\"What
Source: insiderintelligence<\/figcaption><\/figure>\n

This article provides an e-commerce definition, exploring its meaning, workings, types, and its future outlook.<\/p>\n

Techopedia Explains the Meaning of E-Commerce<\/span><\/h3>\n

E-commerce, short for electronic commerce, refers to the buying and selling of goods and services over the Internet. It encompasses a wide range of transactions, from online retail stores and auctions to business-to-business (B2B) sales and online ticketing systems.<\/p>\n

E-commerce allows individuals and businesses to complete purchases and sales electronically, without the need for physical interaction between buyers and sellers.<\/p>\n

It has changed the way businesses operate and consumers shop, offering convenience, accessibility, and a global reach \u2013 helping to expand commerce beyond the bounds of traditional brick-and-mortar retail methods.<\/p>\n

\"E-Commerce\"<\/p>\n

History of E-Commerce<\/span><\/h2>\n

While the concept of buying and selling goods remotely dates back to the early days of mail-order catalogs and telephone orders, the true evolution of e-commerce as we know it today began in the late 20th century.<\/p>\n

The 1960s saw the emergence of Electronic Data Interchange (EDI), which allowed businesses to exchange documents and conduct transactions electronically. This laid the groundwork for the digital exchange of goods and services, albeit in a limited capacity.<\/p>\n

However, it was not until the advent of the Internet in the 1990s that e-commerce truly took off. With the introduction of secure online payment systems and the development of user-friendly web interfaces, businesses began to explore the potential of selling their products and services online.<\/p>\n

Throughout the late 1990s and early 2000s, e-commerce continued to grow rapidly, driven by the proliferation of Internet access and advancements in technology. Online marketplaces such as Amazon and eBay emerged as major players in the e-commerce landscape, offering consumers a wide variety of products and services from multiple sellers.<\/p>\n

The introduction of mobile devices further fueled the growth of e-commerce, allowing consumers to shop on the go through mobile apps and responsive websites. The rise of social media platforms has also played a significant role, enabling businesses to reach and engage with customers in new ways.<\/p>\n

\"History
Source: webopedia<\/figcaption><\/figure>\n

E-commerce has continued to evolve in recent years, with innovations such as same-day delivery, drone delivery, and voice-activated shopping reshaping the way consumers shop online. Additionally, the COVID-19 pandemic accelerated the shift towards e-commerce, as lockdowns and social distancing measures prompted more consumers to turn to online shopping for their everyday needs.<\/p>\n

How E-Commerce Works<\/span><\/h2>\n

E-commerce operates through websites and mobile apps that facilitate transactions between buyers and sellers. It involves the interaction of various processes such as product browsing, selection, payment, and delivery, supported by secure payment gateways and logistics services.<\/p>\n