History And Evolution Of Electronic Commerce

History and evolution of electronic commerce

The human being over the years has evolved and discovering new knowledge, which have allowed him to create new techniques, tools and development of new technologies, which currently serve as a means of communication;Therefore, the application of electronic commerce in companies will allow us to know the client and be in contact with the company through obtaining information about the products or services it offers.

Being so and taking into account that electronic commerce is the purchase – sale of products and/or services through the Internet, in this study a descriptive and historical analysis of its evolution and development will be carried out worldwide.

In the conclusions of this document, the impact (contributions, advantages and disadvantages) that electronic commerce has had in companies that have implemented it as a tool and/or support strategy will be analyzed regardless of the business model to which they dedicate themselves.

INTRODUCTION

Trade was created as an exchange of goods and/or services to meet people’s needs;But it was in 1960 when the United States created a form of data exchange called EDI where it begins to give way to a new form of commerce being this electronic commerce.

In this way, electronic commerce was a source of purchase and sale through digital media being initially a business method or tool not known due to lack of technologies evolution.

With the passing of the years this new type of commerce evolved and strengthened thanks to the help of media such as: in 1970 when the computer was created this was a medium that helped spread virtual catalogs;In 1980, television was a source of help through televentas and at the end of 1990 the Internet was a complement to the computer that serves from then until today since it is very helpful because it allows us to share a large amount of data and informationOn any good, service or topic of interest and to any part of the world.

Thus, in this document, a study of the evolution and development that electronic commerce has had since its inception until 2019 will be carried out;taking as reference the impact it has had in some countries worldwide.

DEVELOPING

Trade

Commerce is called socioeconomic activity consisting of the purchase and sale of goods, either for use, for sale or for transformation. It is the change or transaction of something in exchange for something else of equal value. By commercial or industrial activities we understand so much exchange of goods or services that are affected through a merchant or merchant.

According to the definition of the Dictionary of the Royal Academy of the Spanish Language (2005), Commerce is defined as negotiation that is made and selling or swapped. Also as communication and treatment of some people or peoples with others.

Marketing can be understood as a kind of coordination between the product and the customer, taking into account the specific requirements of this final consumer.

This activity is very important within society since it allows the exchange of goods or services that satisfy the need of the users themselves who pay value for the use of said goods or services becoming commercial transactions in past times in electronic transactions inThe present.

Electronic commerce

At present, the Internet has turned a fundamental tool to market the products or services which has achieved several businesses or companies to modify their marketing processes and adapt to the new information tectologies, which is why we will define in the most waysclear and simple that is electronic commerce, according to several authors to make an e -commerce definition in the end.

Electronic commerce can be defined as a commercial transaction made by both people and companies, through telecommunications networks in a market that lacks geographical limit, but is influenced by an interconnected economy, which makes use of technologies ofInternet to transform commercial relations and exploit market opportunities.(Arceo et al., 2011)

After the review of the different definitions we can say that electronic commerce is a modality of traditional trade that uses digital media that uses automated transactions of goods or services.

The term electronic commerce implies an adjective modification to the substantive trade. This implies that electronic commerce remains trade, with the adjective variant that, for the realization of it, electronic means are used.

Electronic commerce can present different modalities depending on the type of agent involved in the transaction of information, goods or services, in this sense the following relationships can be distinguished among others:

• Company – Company (Business – Business): It consists of any exchange that takes place between two organizations such as: sale, information exchange, business sharing, among others.
• Company – Final Consumer (Busines – Consumer): Exchange of information, goods or services between an organization and its individual clients or consumer.
• Company – Administration (Business – Government): Relationship through telecommunications networks between an organization and public administrations.
• Administration- Consumer (Government-Consumer): Relationship between citizens and public administrations through telecommunications networks to obtain information, the payment of taxes, among others.(Arceo et al., 2011)

Electronic commerce evolution

Commerce over the years and with the advancement of technology has evolved jointly according to progress in digital networks to prevent their products from unnoticed.

In the 1960s computers were a limited billionaire resource to large corporations, some government agencies and the occasional university. During that time, Larry Roberts working for the Department of Advanced Research Projects Agency (Darpa, later renamed ARPA) of the Department of Defense (DOD) of the Government of E.OR. He considered the enormous problem that this represented for a sustained development in government investigations that demanded greater use of computer equipment.(Oropeza, 2018)

Also, during the 70s, electronic fund transfers (EFT) between banks through safe private networks, which revolutionized financial markets are introduced. Today there are many EFT variants such as the debit card, whose use is widespread. When Tim Berners-Lee, a physicist of the European Particle Physics Laboratory (better known for its French acronym, Cern), designed and proposed a worldwide hypertext system, precursor to the current system called World Wide Web Web.

Logistics in e-commerce

One of the greatest difficulties that arise in business through the Internet is related to shipments (goods, services or money). The current cyber clients are not willing to wait several days after the agreed date to receive the order that has usually been canceled previously. 

To structure the merchandise sending system, it is necessary to make an agreement with a reliable postal company, which guarantees reduced delivery times (whether with larger costs). This last characteristic is of the utmost importance because it allows the client to be offered various shipping options with cost variation. (Normally three levels are used: normal, fast or super fast)

It is also necessary for the offeror to indicate very clearly who will be responsible for shipping costs: it may be the company, the final customer or shared form (the company makes a contribution percentage for shipping costs and the client pays therest). 

Impact of electronic commerce in different parts of the world

Electronic commerce has been a boom in all countries of the world since each of them has been adapting to the use of new technological tools to start making commercial transactions through electronic commerce.

Electronic commerce in Mexico

In the country there are 74.3 million Internet users in 2018, which represents a growth of 4.1% compared to the previous year, which indicates the great online demand potential. However, most Internet users use the resource for entertainment, communication and obtaining information (above 85%), while 20% use it to order or buy products.

The consumer is taking a turn in their way of shopping. Every day more people buy online to take advantage of their time, due to the ease of technological advances.

Electronic commerce in Colombia

In Colombia the Internet has significantly penetrated the market, identifying for the first quarter of the year 2011 a total of 5.054.877 Internet subscriptions, of which 61% correspond to the fixed Internet and the remaining 39% of the Mobile Internet. Microsoft Advertising’s study additionally reveals that the number of Internet users is much higher than that of subscriptions, identifying more than 25 million users, for a total penetration of 54%, the second largest in Latin America.

In the last two years, the growth of the country in electronic commerce has been significant and if growth continues, we will soon be at the level of other countries in the region.

Electronic commerce in Spain

Electronic commerce was a relatively new phenomenon in Spain for the 90s. Its implantation in homes and companies has grown significantly in recent years, although it has not yet been generalized, as evidenced by the studies carried out by different institutions. Many companies have adapted to this situation and have defined their online sales strategies.

Advantages of electronic commerce

At present, the technological evolution that has occurred worldwide has changed the way of doing business and having another vision of communication and contact with customers;This in order to give them more comfort at the time of obtaining information from the company, knowing about the goods or services offered and when making a purchase they no longer have to be present physically present for this reason an example can an example canbe electronic payment media.

Due to this analysis it can be concluded that some of the advantages offered are:

• Flexibility in means of payment
• Improve the corporate image of the company
• Company expansion through the web
• National and international growth opportunity
• Access to the global market
• Cost reduction and product offer at economic prices
• Positioning before the competition
• Improve commercial relationships
• Obtain greater profitability