Home Digital Marketing Brief History and definition of e-commerce

Brief History and definition of e-commerce


Since long ago trading was already known to humans, they transacted manually when they needed the items they needed for personal and public use in a way that was so troublesome and a waste of time.

In line with the development of human ways of trading increasingly changing, the means for trading are increasingly sophisticated and make it easier for the way to trade and use. is this automated trading e-commerce? What is e-commerce below is the discussion:


Understanding e-commerce can be viewed from the abbreviation e-commerce itself, namely electronic commerce so it is very clear that the definition of e-commerce is electronic commerce. DesignRush E-commerce can be defined as all forms of trade transaction processes or services using electronic media and utilizing computer networks, namely the internet.


E-commerce is different from ordinary trade, e-commerce has very special characteristics, namely:

– Unlimited transactions

With the internet network, entrepreneurs can market their products internationally simply by creating a website and posting advertisements on unlimited internet sites (24 hours) and customers from all over the world can access the site and make transactions online.

– Anonymous Transactions

The sellers and buyers in transactions over the internet do not have to meet each other face to face. The seller does not require the name of the buyer as long as the payment has been authorized by the specified payment system provider, usually by credit card.

– Intangible goods products

Many companies engaged in the e-commerce sector offer intangible items such as data, software and ideas sold through the internet.

  2. Content Management Systems
  3. Documents, spreadsheets, databases
  4. Accounting and financial systems
  5. Shipping and ordering information
  6. Reporting information from clients and enterprise
  7. Domestic and international payment systems
  8. Newsgroup
  9. On-line Shopping
  10. Conferencing
  11. Online Banking
  12. E-mail and Messaging

– Allows customers to shop or make other transactions without limits for 24 hours.

– Provide more choices to customers


– Items sold are not all displaye

– The appearance of the product is unclear.

– Delivery of old items

– There is a lack of a system of security, reliability, standards, and several communication protocols.


– Consumers don’t have to bother going out of the house to shop

– Providing opportunities to get the best products from various choices.

– Providing opportunities for consumers in any part of the world to be able to use a product / service produced from different parts of the world and conduct transactions and obtain information from the first party throughout the year.

The history of E-commerce development in the world starts from the emergence of the internet which then continues to grow so that the emergence of E-commerce. At first, the internet was a computer cooperative that no one owned. Internet was born in 1969 when a research group at the US Department of Defense connected with four computers at UCLA, the Stanford Research Institute, the University of Utah, and the University of California at Santa Barbara. This relationship is carried out to create a network to communicate with one another regarding government projects.

This network is known as ARPAnet-ARPA, more clearly the Advanced Research Project Agency which is part of the US Department of Security. Three years later, more than fifty universities and military agencies were connected together in networks, and other computer networks began to appear around the country and the world. Along with the development of ARPAnet, which was also followed by network collaboration between the military and educators, and NASA experiments on computer networks, this network began to connect with one another (interconnected), this was the beginning of “the Internet”.

The development of Information Technology has succeeded in creating a new information infrastructure. The internet has several attractions and advantages for consumers and organizations, for example in terms of convenience, speed of data, access 24 hours a day, efficiency, unlimited alternative space and choices, personalization, potential and other sources of information and technology.

In the context of business, the internet has a transformational impact that creates a new paradigm in the business world in the form of ‘Digital Marketing’

At the beginning of the application of electronic commerce which began in the early 1970s with the existence of innovations such as Electronic Fund Transfer (EFT). At that time the application of this system was still very limited to large-scale companies, government financial institutions and some middle-low companies who were desperate, then developed to emerge called EDI (Electronic Data Interchange).

Starting from financial transactions to processing other transactions that make other companies participate, ranging from financial institutions to manufacturing, retail, services and others. Then other applications continue to develop that have a range from stock trading to the travel reservation system. At that time the system was known as a telecommunications application.

Electronic Commerce Definition:

Electronic commerce is a concept of global marketing which is described as the process of buying and selling goods or services in the online world or information exchange through internet information networks (Turban, Lee, King, Chung, 2000).

For example, in the process of buying a book on amazon.com, it is not purely e-Commerce, because when this order is done online, the book is sent to the buyer through a freight forwarding company such as FedEx, but buying software at Grisoft is pure e-Commerce , because shipping, payment and trade intermediaries are all done in a digital system. Indeed, business activities always need a place, the e-Commerce application is built with existing technology infrastructure such as Web Server Hosting, Domain Name, Internet Connection, Web Programming, MySQL Database, and others.

If a lot of people among us see e-Commerce is just a mere website, even though the truth is wider than that.

Main Characteristics of E-Commerce:

  1. The occurrence of transactions between two parties
  2. The exchange of goods, services or information
  3. The internet is the main mediium in the process or mechanism of the trade.

E-commerce is divided into two segments, namely

-Business to business e-commerce (trade between businesses)

-Business to consumer e-commerce (trade between business people and consumers

Generation :

-Internet as a media for corporate promotion through an electronic website or brochure.

-Users have been able to order products via the internet (E-Commerce application). But the deal still requires humans as a decision maker. Example: Bhinneka.com

-Integrated information services, automatically without human intervention. Content is also personalized as desired by the user.

Information is accessed using various media, for example cellular (handphone).

Opportunities & Solutions

Weaknesses of E-Commerce

-Ssuits security

– Credit card piracy, stock exchange fraud, banking fraud, intellectual property rights, illegal access to information systems (hacking) damage to the web site until data theft.

-Compatibility of types and quality of goods promised,

– Inaccurate delivery time of goods

-No cash payment.

-Indonesia does not have legal instruments that accommodate the development of e-commerce.

-Culture problems, namely some people feel less satisfied if they do not see directly the items to be bought.

  • Despite many obstacles, e-commerce cannot be avoided because it is a demand from the community

* There are still many opportunities in e-commerce

* There are still many obstacles. But obstacles can be turned into opportunities


Please enter your comment!
Please enter your name here

12 + eight =