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History (Early development)

The meaning of electronic commerce has changed over the last 30 years. Originally, electronic commerce meant the facilitation of commercial transactions electronically, using technology such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). These ere !oth introduced in the late "#$0s, allo ing !usinesses to send commercial documents li%e &urchase orders or invoices electronically. The gro th and acce&tance of credit cards, automated teller machines ('T() and tele&hone !an%ing in the "#)0s ere also forms of electronic commerce. 'nother form of e*commerce as the airline reservation system ty&ified !y +a!re in the ,+' and Travicom in the ,-. Online sho&&ing as invented in the ,- in "#$# !y (ichael 'ldrich and during the "#)0s it as used e.tensively &articularly !y auto manufacturers such as Ford,/eugeot* Tal!ot, 0eneral (otors and 1issan. From the "##0s on ards, electronic commerce ould additionally include enter&rise resource &lanning systems (E2/), data mining and data arehousing. The earliest of many*to*many electronic commerce in &hysical goods as the 3oston 4om&uter E.change, a mar%et&lace for used com&uters launched in "#)5. The first online information mar%et&lace, including online consulting, as li%ely the 'merican Information E.change, another &re*Internet online system introduced in "##". ,ntil "##", commercial enter&rise on the Internet as strictly &rohi!ited. 'lthough the Internet !ecame &o&ular orld ide around "##6, it too% a!out five years to introduce security &rotocols and D+7 allo ing continual connection to the Internet. 'nd !y the end of 5000, a lot of Euro&ean and 'merican !usiness com&anies offered their services through the 8orld 8ide 8e!. +ince then &eo&le !egan to associate a ord 9ecommerce9 ith the a!ility of &urchasing various goods through the Internet using secure &rotocols and electronic &ayment services.

Electronic commerce, commonly %no n as e*commerce or e4ommerce, consists of the !uying and selling of &roducts or services over electronic systems such as the Internet and other com&uter net or%s. It uses the 8orld 8ide 8e!. ' ide variety of ho E*4ommerce is conducted:* +&urring and dra ing on innovations in electronic funds transfer +u&&ly chain management Internet (ar%eting Electronic Data Interchange (EDI) Inventory (anagement systems 'utomated data collection systems Internet mar%eting Online Transaction /rocessing Inventory (anagement +ystems

' large &ercentage of electronic commerce is conducted entirely electronically for virtual items such as access to &remium content on a e!site, !ut most electronic commerce involves the trans&ortation of &hysical items in some ay. Online retailers are sometimes %no n as e-tailers and online retail is sometimes %no n as e-tail. 'lmost all !ig retailers have electronic commerce &resence on the 8orld 8ide 8e!. Electronic commerce that is conducted !et een !usinesses is referred to as !usiness*to* !usiness or 353. 353 can !e o&en to all interested &arties (e.g. commodity e.change) or limited to s&ecific, &re*;ualified &artici&ants (&rivate electronic mar%et). Electronic commerce that is conducted !et een !usinesses and consumers, on the other hand, is referred to as !usiness*to*consumer or 354. This is the ty&e of electronic commerce conducted !y com&anies such as 'ma<

Electronic commerce is generally considered to !e the sales as&ect of e*!usiness. It also consists of the e.change of data to facilitate the financing and &ayment as&ects of the !usiness transactions.