You are on page 1of 4

Electronic commerce, commonly written as e-commerce or eCommerce,

is the trading or facilitation of trading in products or services using computer

networks, such as the Internet or online social networks. Electronic
commerce draws on technologies such as mobile commerce, electronic funds
transfer, supply chain management, Internet marketing, online transaction
processing, electronic data interchange (EDI), inventory management
systems, and automated data collection systems. Modern electronic
commerce typically uses the World Wide Web for at least one part of the
transaction's life cycle although it may also use other technologies such as e-

E-commerce businesses may employ some or all of the following:

Online shopping web sites for retail sales direct to consumers

Providing or participating in online marketplaces, which process third-

party business-to-consumer or consumer-to-consumer sales

Business-to-business buying and selling

Gathering and using demographic data through web contacts and

social media

Business-to-business (B2B) electronic data interchange

Marketing to prospective and established customers by e-mail or fax

(for example, with newsletters)

Engaging in pretail for launching new products and services

Online financial exchanges for currency exchanges or trading purposes


1971 or 1972: The ARPANET is used to arrange a cannabis sale between

students at the Stanford Artificial Intelligence Laboratory and the
Massachusetts Institute of Technology, later described as "the seminal act of
e-commerce" in John Markof's book What the Dormouse Said.

1979: Michael Aldrich demonstrates the first online shopping system.

1989: In May 1989, Sequoia Data Corp. Introduced Compumarket The first
internet based system for e-commerce. Sellers and buyers could post items
for sale and buyers could search the database and make purchases with a
credit card.

1995: Jef Bezos launches and the first commercial-free 24-
hour, internet-only radio stations, Radio HK and NetRadio start broadcasting.
eBay is founded by computer programmer Pierre Omidyar as AuctionWeb.

2000: Complete Idiot's Guide to E-commerce released on Amazon

2015: accounts for more than half of all ecommerce growth,
selling almost 500 Million SKU's in the US.

Governmental Regulation

Internationally there is the International Consumer Protection and

Enforcement Network (ICPEN), which was formed in 1991 from an informal
network of government customer fair trade organisations. The purpose was
stated as being to find ways of co-operating on tackling consumer problems
connected with cross-border transactions in both goods and services, and to
help ensure exchanges of information among the participants for mutual
benefit and understanding. From this came, an ICPEN
initiative since April 2001. It is a portal to report complaints about online and
related transactions with foreign companies.

There is also Asia Pacific Economic Cooperation (APEC) was established

in 1989 with the vision of achieving stability, security and prosperity for the
region through free and open trade and investment. APEC has an Electronic
Commerce Steering Group as well as working on common privacy regulations
throughout the APEC region.

In an intra-company transfer, a company transfers an item, or employee

to work temporarily in a diferent office, often in another country.

A company that decides to send one or more of their employees to work at

an office of theirs which is located elsewhere, is making an intra-company

If the transfer requires that their employee moves to a diferent company a

special "intra company transfer work permit" must be issue.

There are controls to ensure that the foreign employee continues to be

employed at their specified position throughout their working period - the
permit is valid for 2 years in most countries.



- An extranet is a private virtual space to securely collaborate, share

information or integrate operations with travelling teams, suppliers, vendors,
partners, or customers. A few examples are a sales extranet containing order
forms and client directories for the sales team, a partner extranet enabling
management of joint tasks, or a customer extranet portal where you
collaborate on specifications documents with clients.

Exchange large volumes of data using Electronic Data Interchange (EDI)

Share product catalogs exclusively with wholesalers or those "in the trade"

Collaborate with other companies on joint development efforts

Jointly develop and use training programs with other companies

Provide or access services provided by one company to a group of other companies, such
as an online banking application managed by one company on behalf of affiliated banks

Share news of common interest exclusively with partner companies