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by
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Journey to eCommerce
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Barter is a system of exchange by
which goods or services are directly
exchanged for other goods or services
without using a medium of exchange,
such as money.
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An 1874 newspaper illustration from Harper's Weekly, showing a man engaging in barter: offering chickens in exchange for his yearly newspaper subscription.
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Since the 1830s, direct barter in western
market economies has been aided by
exchanges which frequently utilize
alternative currencies based on the labour
theory of value, and designed to prevent
profit taking by intermediators.
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History
» Silent Trade: is a method by which traders who cannot speak each other's language can trade
without talking.
» Times of Monetary Crisis : Money may be in such short supply that it becomes an item of
barter itself rather than the means of exchange.
» Exchanges : A barter exchange operates as a broker and bank in which each participating
member has an account that is debited when purchases are made, and credited when sales are
made.
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Evolution of eCommerce
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Electronic Commerce : describes the
manner in which transactions take place
over networks, mostly the Internet. It is
the process of electronically buying and
selling goods, services and information.
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Electronic Commerce or EC : is not just
about buying and selling, it also is about
electronically communicating,
collaborating, and discovering information.
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Late 1960s military developed ARPAnet to ensure that crucial communications were
circulated in the event of a nuclear attack
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Development of EC applications started in
the early 1970s with electronic funds
transfer (EFT), which refers to the
computer-based systems used to perform
financial transactions electronically.
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In 1971 researchers developed the Terminal
Interface Processor (TIP) for dialing into the
ARPAnet from an individual computer
terminal.
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Electronic data interchange (EDI) was then
developed in the late 1970s to improve the
limitation of EFT. EDI enlarged the pool of
participating company from manufacturers,
retailers, services, and others. Such systems
were called Inter Organizational System (IOS).
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The Greatest Networking Evolution came in
1982, when ARPAnet switched over
to Transmission Control Protocol and Internet
Protocol (TCP/IP), the same packet-switched
technology that powers the modern Internet.
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By the early 1980s, individual computer users
-- still mostly at major research universities --
were sending e-mails, participating in listservs
and newsgroups, and sharing documents over
networks like BITNET and USENET.
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In 1984, EDI, or electronic data interchange,
was standardized through ASC X12. This
guaranteed that companies would be able
to complete transactions with one another
reliably.
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In the mid-1980s, Compuserve added a service
called the Electronic Mall, where users could
purchase items directly from 110 online merchants
[ source: Smart Computing ]. While the Electronic
Mall wasn't a huge success, it was one of the first
examples of e-commerce as we know it today.
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In 1990, a researcher named Tim Berners-Lee at the European Organization for Nuclear Research
(CERN, from its French name) proposed a hypertext-based web of information that a user could
navigate using a simple interface called a browser. He called it the "World Wide Web"
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In 1991, the National Science Foundation
lifted a ban on commercial businesses
operating over the Internet, paving the way
for Web-based eCommerce.
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The term ‘electronic commerce’ was coined in
the early 1990s when Internet became
commercialized and users began flocking to
participate in the World Wide Web. EC
applications were then rapidly expanded.
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In 1992, Compuserve offers online retail
products to its customers. This gives people
the first chance to buy things off their
computer.
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» In 1994, Netscape arrived. Providing users a simple browser to surf the Internet and a
safe online transaction technology called Secure Sockets Layer.
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» In 1994 and 1995, the first third-party services for processing online credit card sales began
to appear [ source: Keith Lamond ]. First Virtual and CyberCash were two of the most popular.
» Also in 1995, a company called Verisign began developing digital IDs, or certificates, that
verified the identity of online businesses. Soon, Verisign switched its focus to certifying that a Web
site's e-commerce servers were properly encrypted and secure.
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1995 : Two of the biggest names in eCommerce are
launched: Amazon.com and eBay.com.
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In July 1995: Jeff Bezos boxed up the first book
ever sold on Amazon.com from his Seattle
garage. Within its first 30 days of business, the
self-proclaimed "Earth's largest bookstore"
sold books to online shoppers in all 50 U.S.
states and 45 countries [source: Amazon.com]
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Jeff Bezos boxed up the first book ever sold on Amazon.com
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Back in 1995: when Bezos was shipping books from his
garage, Pierre Omidyar, a software programmer, started
coding a simple Web site he called AuctionWeb. Omidyar
was curious if people would use the Internet to bid on each
other's used items. Looking around for something to sell,
Omidyar picked up a broken laser pointer. Within a day, it
had sold for $14.83. Omidyar e-mailed the buyer to make
sure the guy knew it was broken. The buyer's response? "I'm
a collector of broken laser pointers" [source: eBay].
Welcome to eBay.
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eBay was founded by Pierre Omidyar in 1995
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In 1998 : DSL, or Digital Subscriber Line, provides fast, always-on
Internet service to subscribers across California. This prompts people
to spend more time, and money, online.
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In 1999 : retail spending over the Internet reaches
$20 billion, according to Business.com.
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In 2000: The U.S government extended
the moratorium on Internet taxes until at
least 2005.
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eBay leveled the eCommerce playing field. You didn't have
to be a Web entrepreneur or an existing business to sell
things online. All you had to do was raid your attic, post a
listing, and there was a good chance that someone,
somewhere, would pay money for your old junk. In 1996,
with two full-time employees, eBay sold $7.2 million worth
of goods. By 1997, with the help of a Beanie Babies frenzy,
eBay sold $95 million in goods. In 2007, eBay sold $52.5
billion in auctions, had more than 220 million registered
users and 13,000 employees [source: eBay].
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In 2012: online businesses grew 21.1% to
top $1 trillion for the first time of its trend.
This year sales are supposed to grow
18.3% to $1.298 trillion worldwide. It’s
also forecast that there will be 175 million
people shopping online by 2016.
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FeweCommerce Platforms
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FeweCommerce Platforms
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Magento Is the Fastest Growing eCommercePlatform Provider on the IR Top 500
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With over 200,000 installations, Magento is
among the most popular eCommerce platforms in
the world. It is free, open-source, and counts
Nike, Warby Parker, and Paul Smith among its
clients. As a highly scalable, powerful platform
with a huge library of existing extensions, it is
particularly suitable for startups and traditional
retailers looking to make the jump online.
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The 2014 IR Top 500 Guide : has been released and
Magento has overtaken Demandware to join Oracle
and IBM as the top three providers to the top 500
internet retailers in the US and Canada. Magento has
34 merchants on the latest edition of the IR Top 500
list, doubling the number of merchants from the 2013
list. Magento clients include marquee brands like
COACH and fast-growing brands and retailers like Alex
and Ani, Zumiez, and Signature Hardware.
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IR TOP 500 MERCHANTS WITH $20M-$75M IN ANNUAL ONLINE SALES
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Magento Powers 26% of the Top eCommerce Websites
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eCommerce sites by Netstarter
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Petbarn
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The Athlete's Foot
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Breville
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Dick Smith
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Bras N Things
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Lonsdale
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Lorna Jane
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Activeskin
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Cars Guide
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Glue Store
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Cincotta Chemist
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Thank You
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