What is E commerce?

 Savvy entrepreneurs diving into the e-commerce world have a lot to learn about this industry. In this article, we’re going to cover all essential e-commerce basics every retailer needs to know, but before we do that, let’s answer this fundamental question: 

What is e-commerce?

Ecommerce, or electronic commerce, refers to transactions conducted via the internet. Every time individuals and companies are buying or selling products and services online they’re engaging in e-commerce. The term e-commerce also encompasses other activities including online auctions, internet banking, payment gateways, and online ticketing. 

Now, a little bit of history first.

How e-commerce came to be

The first e-commerce transaction was made in 1994. A guy named Phil Brandenberger used his Mastercard to buy Sting’s Ten Summoners’ Tales via the internet for $12.48. This particular transaction made history and signaled to the world that the “internet is open” for e-commerce transactions. Why? Because it was the first time that encryption technology was used to enable an internet purchase. 

Needless to say, e-commerce has grown by leaps and bounds ever since. The rise of e-commerce giants like Amazon and Alibaba in the mid -1990s changed the face of the retail industry. They largely capitalized on the global internet penetration and digitalization of the financial system which contributed to the decline in sales for many brick-and-mortar businesses.

The growth of ecommerce has also shifted the retail workforce. The U.S Bureau of Labour Statistics (BLS) has revealed that from 1997 to 2016, employment in the ecommerce sector  increased by 80%. BLS is also predicting that the number of ecommerce jobs will keep on growing and reach 450,000 in the US by 2026.