When Did Ecommerce Start to Boom?
When did ecommerce start to boom? During the 1970s and 1980s, the internet had a limited reach. The rise of the internet sped up communication and the introduction of secure data transmission. In 1982, Boston Computer Exchange launches the first online marketplace. In 1995, eBay and PayPal are launched, and both companies become influential in the e-commerce industry. By 1997, eBay has completed one million transactions. PayPal also gives consumers a trusted artery to use for financial transactions. Eventually, Google debuts Google AdWords, and Square allows retailers to accept payments through applications.
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The impact of the COVID-19 pandemic on ecommerce has been significant. Many sectors that were not already digitally mature began the process of going online. The resulting restrictions hampered movement in most countries, but the trend gradually reversed. As a result, economies that had been comparatively digitally mature before the pandemic were able to take advantage of the opportunities e-commerce offers, and online spending began to rise in those countries.
Despite this, the ecommerce industry has seen a steady growth in recent years. Specifically, in the United Kingdom, online retail growth jumped fivefold. Other countries followed suit. And it doesn’t seem to be fading anytime soon. In 2020, it is expected to grow by a whopping 28%. With such a boost, the sector may well be in for more growth.
CompuServe launch in 1969
The first successful ecommerce company was CompuServe. They provided computer time to other businesses and later began offering their services directly to consumers. A British engineer named Michael Aldrich modified a television to connect to a transaction processing computer. This discovery would shape how ecommerce functions today. In the late 1970s, the first ecommerce company was launched – Boston Computer Exchange.
When CompuServe launched in 1969, the Internet was still fairly a primitive form of communication. It was difficult to make purchases using a dial-up connection. Fortunately, the technology became more advanced and the first ecommerce sites were launched. CompuServe’s growth was fueled by technological advancements and global circumstances. In 2007, the market for eCommerce is predicted to grow to $4.89 trillion in revenue, according to Statista.
Millennials disrupt ecommerce
Millennials are changing the way we shop. The large, unique generation has long had different expectations than other generations. Their preferences include a more interactive and engaging in-store environment, competitive pricing, superior benefits, and brands that reflect their values. With these demands in mind, ecommerce companies must adapt to meet Millennial needs. But how can they do so? Let’s look at the key trends in millennial shopping.
First, Millennials are savvy shoppers. They shop around and read multiple reviews before making a purchasing decision. They also want to get a true picture of a brand. Moreover, in this digital age, there is no place for deception. Everybody can get access to information about a company’s products and customer service. To keep up, many B2B ecommerce companies are embracing transparency and accepting negative reviews.
Need for more investment in ecommerce
The retail landscape continues to change and evolve in 2021. As the growth of online retail continues to accelerate, brands must find new ways to reach and convert customers to buyers. In addition, they need more investment to continue this growth. Private equity and venture capital firms are becoming more active in the commerce space. From 2012 to 2018, the DTC brands received $3 billion in venture capital investment. About half of that amount was allocated in 2018 alone. The other half was allocated in 2019 and 2020. In addition, some companies are increasing their investment in new technologies and acquisition strategies.
A majority of publicly-traded e-commerce companies are priced at more than $100 per share. This cost per share limits the ability of investors with lower investment budgets to invest in these companies. As a result, these companies are considered the targets of venture capital and private equity investors. Thrasio, for example, recently announced it was raising another US$750 million. Its acquisition of nearly 100 sellers on Amazon is one example of this trend.