World Applied Programming, Vol (1), No (2), June 2011.

94-99
ISSN: 2222-2510
2011 WAP journal. www.waprogramming.com

An overview of E-commerce
Mohsen Khoshnampour *

Masoud Nosrati

Department of Accounting,
Science and Research Branch,
Islamic Azad University,
Tehran, Iran
mohsen.khoshnampour@yahoo.com

Department of Computer Engineering,

Sahneh Branch,
Islamic Azad University,
Sahneh, Iran
nosrati.masoud@mail.com

Abstract: In this paper, we are going to take a short introduction to e-commerce. Due to this, the
definition of e-commerce will be stated. Then, we will get into its uses and describe them in
details. Different applications of e-commerce will be investigated in the follow. And finally we
will have conclusion.
Key word: e-commerce uses timeline applications
I.

INTRODUCTION

As the internet grew up and spread amongst all the countries of world, life of people were affected by
this giant technology. Almost all aspects of their life style were somehow changed, and some online
aspects were added. Nowadays, one of the most important subjects in online world is online jobs and
internet home e-commerce. E-commerce means "buying and selling the products or services on internet or
other networks". The use of commerce is conducted in this way, spurring and drawing on innovations in:
Electronic funds transfer
It is the electronic exchange or transfer of money from one account to another, either within a
single financial institution or across multiple institutions, through computer-based systems [1].
Supply chain management
It is the management of a network of interconnected businesses involved in the ultimate provision
of product and service packages required by end customers [2].
Internet marketing
Internet marketing, also known as digital marketing, web marketing, online marketing, or emarketing, is the marketing (generally promotion) of products or services over the Internet [3].
Online transaction processing
It refers to a class of systems that facilitate and manage transaction-oriented applications,
typically for data entry and retrieval transaction processing [4].
Electronic data interchange (EDI)
It is the structured transmission of data between organizations by electronic means. It is used to
transfer electronic documents or business data from one computer system to another computer
system, i.e. from one trading partner to another trading partner without human intervention [5].
Inventory management system
It is primarily about specifying the size and placement of stocked goods. Inventory management
is required at different locations within a facility or within multiple locations of a supply network
to protect the regular and planned course of production against the random disturbance of running
out of materials or goods [6].

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Mohsen Khoshnampour and Masoud Nosrati., World Applied Programming, Vol (1), No (2), June 2011.

After World Wide Web browser invented by Tim Berners-Lee in 1990 [7], commercial enterprise on
the Internet was strictly prohibited by NSF until 1995 [8].
Timeline [9]
E-commerce timeline is listed below:
1979: Michael Aldrich invented online shopping [10]
1981: Thomson Holidays, UK is first B2B online shopping[citation needed]
1982: Minitel was introduced nationwide in France by France Telecom and used for online
ordering.
1984: Gateshead SIS/Tesco is first B2C online shopping and Mrs. Snowball, 72, is the first online
home shopper
1985: Nissan UK sells cars and finance with credit checking to customers online from dealers'
lots.
1987: Swreg begins to provide software and shareware authors means to sell their products online
through an electronic Merchant account.
1990: Tim Berners-Lee writes the first web browser, WorldWideWeb, using a NeXT computer.
1994: Netscape releases the Navigator browser in October under the code name Mozilla. Pizza
Hut offers online ordering on its Web page. The first online bank opens. Attempts to offer flower
delivery and magazine subscriptions online. Adult materials also become commercially
available, as do cars and bikes. Netscape 1.0 is introduced in late 1994 SSL encryption that made
transactions secure.
1995: Jeff Bezos launches Amazon.com and the first commercial-free 24 hour, internet-only
radio stations, Radio HK and NetRadio start broadcasting. Dell and Cisco begin to aggressively
use Internet for commercial transactions. eBay is founded by computer programmer Pierre
Omidyar as AuctionWeb.
1998: Electronic postal stamps can be purchased and downloaded for printing from the Web.
1999: Business.com sold for US $7.5 million to eCompanies, which was purchased in 1997 for
US $149,000. The peer-to-peer filesharing software Napster launches. ATG Stores launches to
sell decorative items for the home online.
2000: The dot-com bust.
2002: eBay acquires PayPal for $1.5 billion [11]. Niche retail companies CSN Stores and
NetShops are founded with the concept of selling products through several targeted domains,
rather than a central portal.
2003: Amazon.com posts first yearly profit.
2007: Business.com acquired by R.H. Donnelley for $345 million.[12]
2009: Zappos.com acquired by Amazon.com for $928 million.[13] Retail Convergence, operator
of private sale website RueLaLa.com, acquired by GSI Commerce for $180 million, plus up to
$170 million in earn-out payments based on performance through 2012.[14]
2010: Groupon reportedly rejects a $6 billion offer from Google. Instead, the group buying
websites plans to go ahead with an IPO in mid-2011 [6].
2011: US eCommerce and Online Retail sales projected to reach $197 billion, an increase of 12
percent over 2010 [15]. Quidsi.com, parent company of Diapers.com, acquired by Amazon.com
for $500 million in cash and plus $45 million in debt and other obligations [16].
In the United States, some electronic commerce activities are regulated by the Federal Trade
Commission (FTC). These activities include the use of commercial e-mails, online advertising and
consumer privacy. The CAN-SPAM Act of 2003 establishes national standards for direct marketing over
e-mail. The Federal Trade Commission Act regulates all forms of advertising, including online
advertising, and states that advertising must be truthful and non-deceptive [17]. Using its authority under
Section 5 of the FTC Act, which prohibits unfair or deceptive practices, the FTC has brought a number of
cases to enforce the promises in corporate privacy statements, including promises about the security of
consumers personal information [18]. As result, any corporate privacy policy related to e-commerce
activity may be subject to enforcement by the FTC.

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Mohsen Khoshnampour and Masoud Nosrati., World Applied Programming, Vol (1), No (2), June 2011.

The Ryan Haight Online Pharmacy Consumer Protection Act of 2008, which came into law in 2008,
amends the Controlled Substances Act to address online pharmacies [19].
II.

BUSINESS APPLICATIONS

E-commerce has a wide range of applications in this technology age. Here, we are going to mention
some of them.
Document automation
It is the design of systems and workforce that assist in the creation of electronic documents. These
include logic based systems which utilize segments of pre-existing text and/or data to assemble a
new document [20]. This process is increasingly used within certain industries to assemble legal
documents, contracts and letters. Document automation system can also be used to automate all
conditional text, variable text, and data contained within a set of documents [21].
E-commerce payment systems
An e-commerce payment system facilitates the acceptance of electronic payment for online
transactions. Also known as a sample of Electronic Data Interchange (EDI), e-commerce payment
systems have become increasingly popular due to the widespread use of the internet-based
shopping and banking. In the early years of B2C transactions, many consumers were
apprehensive of using their credit and debit cards over the internet because of the perceived
increased risk of fraud. Recent research shows that 90% of people in the United Kingdom still do
not shop online because they do not trust online payment systems. However, 54% do believe that
it is safe to shop online which is an increase from 26% in 2006 [22].
Enterprise content management
Enterprise Content Management (ECM) is a formalized means of organizing and storing an
organization's documents, and other content, that relate to the organization's processes. The term
encompasses strategies, methods, and tools used throughout the lifecycle of the content [23].
Group buying
Group buying, also known as collective buying, offers products and services at significantly
reduced prices on the condition that a minimum number of buyers would make the purchase.
Origins of Group buying can be traced to China where Tungu or team buying was executed to
get discount prices from retailer when a large group of people were willing to buy the same item.
In recent time, Group buying websites have emerged as a major player in online shopping
business. Typically, these websites feature a deal of the day, with the deal kicking in once a set
number of people agree to buy the product or service. Buyers then print off a voucher to claim
their discount at the retailer [24]. Many of the group-buying sites work by negotiating deals with
local merchants and promising to deliver crowds in exchange for discounts [25].
Automated online assistants
An automated online assistant is a program that uses artificial intelligence to provide customer
service or other assistance on a website. Such an assistant may basically consist of a dialog
system, an avatar, as well an expert system to provide specific expertise to the user [26].
Automated online assistants have the ability to provide customer service during 24 hours a day
and 7 days a week, and may, at least, be a complement to customer service by humans [27].
Newsgroups
A Usenet newsgroup is a repository usually within the Usenet system, for messages posted from
many users in different locations. The term may be confusing to some, because it is usually a
discussion group. Newsgroups are technically distinct from, but functionally similar to,
discussion forums on the World Wide Web. Newsreader software is used to read newsgroups
[28].

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Mohsen Khoshnampour and Masoud Nosrati., World Applied Programming, Vol (1), No (2), June 2011.

Online shopping
Online shopping is the process whereby consumers directly buy goods or services from a seller in
real-time, without an intermediary service, over the Internet. It is a form of electronic commerce.
An online shop, eshop, e-store, internet shop, webshop, webstore, online store, or virtual store
evokes the physical analogy of buying products or services at a bricks-and-mortar retailer or in a
shopping mall. The process is called Business-to-Consumer (B2C) online shopping. When a
business buys from another business, it is called Business-to-Business (B2B) online shopping
[29].
Online banking
Online banking continues to present challenges to your financial security and personal privacy.
Millions of people have had their checking accounts compromised, mainly as a result of online
banking. If you are going to use online banking to conduct financial transactions, you should
make yourself aware of the risks and take precautions to minimize them. The following practices,
which are discussed further in this paper, can help you avoid common security problems
associated with online banking [30]:
o
o
o
o
o
o
o
o

Review all privacy and policy information.

Using unique and hard to guess login information.
Protect your computer.
Check your account balance regularly.
Pay using credit cards.
Do not access your account from public locations.
Verify email correspondence from bank.
If your account is compromised, take swift action.

Online office suites

An online office suite or online productivity suite is a type of office suite offered by websites in
the form of software as a service. They can be accessed online from any Internet-enabled device
running any operating system [31]. This allows people to work together worldwide and at any
time, thereby leading to international web-based collaboration and virtual teamwork. Usually, the
basic versions are offered for free and for more advanced versions one is required to pay a
nominal subscription fee [32].
Shopping cart software
Shopping cart software is software used in e-commerce to assist people making purchases online,
analogous to the American English term 'shopping cart'. In British English it is generally known
as a shopping basket, almost exclusively shortened on websites to 'basket'.
The software allows online shopping customers to accumulate a list of items for purchase,
described metaphorically as "placing items in the shopping cart". Upon checkout, the software
typically calculates a total for the order, including shipping and handling (i.e. postage and
packing) charges and the associated taxes, as applicable [33].
Teleconferencing
A teleconference or teleseminar is the live exchange and mass articulation of information among
several persons and machines remote from one another but linked by a telecommunications
system. Terms such as audio conferencing, telephone conferencing and phone conferencing are
also sometimes used to refer to teleconferencing [34].
The telecommunications system may support the teleconference by providing one or more of the
following: audio, video, and/or data services by one or more means, such as telephone, computer,
telegraph, teletype, radio, and television [35].

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Mohsen Khoshnampour and Masoud Nosrati., World Applied Programming, Vol (1), No (2), June 2011.

Electronic tickets
An electronic ticket or e-ticket is used to represent the purchase of a seat on a passenger airline,
usually through a website or by telephone, or sometimes through airline ticket offices or travel
agencies. This form of airline ticket rapidly replaced the older multi-layered paper tickets (from
close to zero to 100% in about 10 years) and became mandatory for IATA members as from June
1, 2008. During the last few years, where paper tickets were still available, airlines frequently
charged extra for issuing them. E-tickets are also available for some entertainment venues [36].

III.

CONCLUSION

In this paper, we talked about the ecommerce. Then we got into the different uses of it, such as:
electronic funds transfer, supply chain management, internet marketing, online transaction processing,
electronic data interchange (EDI) and inventory management system. In the follow, timeline of ecommerce was investigated. As the next section, we got into different applications of e-commerce and
talked about them in details. They were: document automation, e-commerce payment systems, enterprise
content management, group buying, automated online assistants, newsgroups, online shopping, online
banking, online office suites, shopping cart software, teleconferencing and electronic tickets.

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