History of E-Commerce

E-Commerce Electronic (E) commerce The buying and selling of products or services over the Internet

History English entrepreneur Michael Aldrich invented online shopping in 1979 He connected a TV to a phone line This technology was called videotex

Videotex used to deliver information (usually pages of text) to a user in computer-like format, typically displayed on a television screen

History In March 1980 he went on to launch Redifon's Office Revolution, which allowed consumers, customers, agents, distributors, suppliers and service companies to be connected on-line to the corporate systems and allow business transactions to be completed electronically in real-time.

History During the 1980s he designed, manufactured, sold, installed, maintained and supported many online shopping systems, using videotex technology

The World Wide Web First server and browser created by Tim Berners-Lee in 1990 Opened for commercial use in 1991

Technological Innovations 1994 – Online banking – Online pizza shop by Pizza Hut – Intershop’s first online shopping system

Shopping 1995 – Amazon.com – Ebay

Amazon.com Founded in 1994 by Jeff Bezos, in his garage in Bellevue, Washington After reading a report that internet commerce was expected to grow by 2,300% Created a list of 20 products that could be marketed online

Amazon.com Narrowed the list to 5 products he felt were the most promising: – Compact discs (CD’s) – Computer hardware – Computer software – Videos – Books

Amazon.com Decided his new business would sell books online Why? – Large world-wide demand for literature – Low price-points for books (price point-the price of a product set by the manufacturer) – Huge number of titles available in print

Amazon.com In the first 2 months, Amazon did business in all 50 states and 45 countries Sales were up $20,000 per week Most brick and mortar stores would carry 200,000 books Amazon could carry several times more in their unlimited virtual warehouse

Company Name Bezos wanted a name that started with A so that it would appear early in alphabetic order He settled on "Amazon" because it was a place that was "exotic and different" just as he planned for his store to be, and he believed it was the biggest river in the world, and he planned to make his store the biggest in the world

Company Logo Since 2000, Amazon's logotype has featured a curved arrow leading from A to Z, representing that they carry every product from A to Z, with the arrow shaped like a smile

Going Public When Amazon went public in 1997, shares of its stock sold for $18.00 Today, those shares are worth $ Amazon made its first profit in 2001, $5 million

Online Shopping Customers must have access to the Internet Customers find products to purchase

Shopping Cart Software that allows online customers to accumulate multiple items and adjust quantities, like filling a physical shopping cart or basket in a conventional store A “checkout” process follows in which payment and delivery information collected

Payment Online shoppers commonly use a credit card or a PayPal account in order to make payments You may also pay with checking accounts, gift cards and debit cards

PayPal Online money transfer system Customers create an account Allows customers to send, receive or hold funds in 26 currencies Transaction fee is charged to the receiver of money (this is how the company makes money) You can transfer money to anyone, business or personal, that has an account

Dot Com Bubble Height of dot com bubble March 10, 2000 The period was marked by the founding (and, in many cases, spectacular failure) of a group of new Internet-based companies commonly referred to as dot-coms

Dot Com Stocks Companies could cause their stock prices to increase by simply adding an “e” – prefix to their name or a “.com" to the end Most investors overlooked traditional statistics on investing and based confidence in these stocks on technological advancements

Collapse The collapse of the bubble took place from Some companies failed completely, others survived

Mark Cuban Owned several different business all in the media and broadcasting industry Got rich in the dot com bubble

Mark Cuban Owned a company, broadcast.com Radio broadcast from inside a sports venue to a hand held radio outside Mark Cuban was smart, and able to foresee that the dot com bubble, like any other bubble, would burst

Mark Cuban Sold his company to Yahoo! in April 1999 for $5.7 Billion

Mark Cuban Yahoo! Changed the name to Yahoo! Broadcast Solutions As of August 6, 2013, the company no longer exists In October 1999, he made the single largest e-commerce transaction, purchasing a $40 million Gulfstream Jet

Dallas Mavericks On January 4, 2000, Cuban bought a majority share (95%) of the Dallas Mavericks for $285 million Before he bought the team, they had only won 40% of their games