Electronic commerce, commonly known as eCommerce, e-commerce, or ecommerce, refers to the innovative practice of selling and buying products and services over the Internet. Social media, websites, and shopping apps are all examples of platforms where eCommerce takes place. The eCommerce industry has seen astonishing growth; in fact, revenue in the eCommerce Market is projected to reach US$4,117.00bn in 2024.

The evolution of eCommerce is intrinsically linked to the advancements in technology and the progress of the internet. In its early days, the internet was utilized as a means to exchange information, but nowadays, it is a global phenomenon that enables users to engage in a wide range of online transactions. Online markets are convenient and accessible and high-speed internet is available almost everywhere, so we are all familiar with the eCommerce industry of today. But who invented eCommerce? Keep reading to find out!

The Early Days of Online Shopping

For most of us, the early days of online shopping are hard to remember. Even though from a historical point of view, eCommerce is a relatively new technology, it is something that was invented thanks to the Silent Generation and Baby Boomers and that is now older than Gen X. The early days of online shopping occurred in the 1970s when the English innovator Michael Aldrich created the earliest version of electronic shopping by combining a telephone line, a transaction-processing computer, and a modified TV.

Michael Aldrich: The Pioneer

Michael Adrich was an English innovator, inventor, and entrepreneur whose ideas shaped the tech industry. When people want to know who invented eCommerce, the first man that should be mentioned is Aldrich, as he is considered the father of the internet. In 1979, Aldrich invented online shopping and he made online transaction processing between businesses (B2B) and between businesses and consumers (B2C) possible. The technique that he developed became later known as eCommerce. Aldrich’s invention was truly unique as it was the first communication tool that made interactive mass communication possible. However, until the Internet became more widespread, his invention was quite costly and not very financially viable for most businesses.

Tim Berners-Lee and the World Wide Web

The next important technological step that helped create the world of eCommerce was the invention of the World Wide Web (WWW). This happened in 1989, while British scientist Tim Berners-Lee, was working at CERN. Initially, he built the WWW to cater to the demand for automated information sharing between university scientists and science institutes around the globe. The first proposal for the WWW came from Lee, in March 1989 and his second proposal in May 1990 when he joined forces with Belgian systems engineer Robert Cailliau. Lee and Cailau outlined the initial concept behind the World Wide Web, which by the end of the 1990s became the first Web server and browser.

Fun Fact: You can still access the first website and web server in the world at info.cern.ch and the first Web page address at http://info.cern.ch/hypertext/WWW/TheProject.html

Jeff Bezos and the Rise of Amazon

Now this name probably rings a bell – Jeff Bezos, an American entrepreneur and one of the richest men in the world played an essential role in the rise of eCommerce. He is the founder and CEO of Amazon, initially a merchant of books that evolved and became the giant we all know today. An electrical engineering and computer science graduate, in 1994, Bezos quit his job at New York investment bank D.E. Shaw to establish a virtual bookstore that sold its first book in 1995. His idea baffled many, but Bezos had a vision and he was not wrong. Once the internet became widely available, and people got a taste of the endless possibilities offered by this innovative technology, Amazon became a leader in e-commerce. Through the 2000s Amazon started to offer a wide range of products, from electronics to apparel, and by 2018 the platform was worth billions of dollars. Bezos stepped down as CEO in 2021, but he continues to be an executive chairman of the company.

Pierre Omidyar and the Creation of eBay

The history of eCommerce would not be complete without mentioning Pierre Omidyar and the creation of eBay. Pierre Omidyar was in his late 20s in 1995 when he started to build an online platform where people could participate in online auctions for collectable items. Omidyar launched a platform called Auction Web, in September 1995, that would become eBay in 1997. The platform’s growth was surprising even to Omidyar who, alongside his partner Jeffrey Skoll, became a billionaire by 1998. Omidyar’s eBay bought Elon Musk’s online payment company PayPal, in 2002, thus increasing the value of his platform even more. Omidyar stepped down from eBay’s board in 2020 but remained active in the company as director emeritus.

Reed Hastings and Netflix

Among the people who invented eCommerce, Reed Hastings is worth mentioning. An eCommerce giant – Netflix, the platform that helps us sleep and gives us an extra reason to chill, was created by software developer Reed Hastings in 1997. As most millennials remember, Netflix was initially a subscription-based movie rental service. Hastings’ idea was that movies could easily be ordered and delivered through the mail, so in 1998, he and his business partner Marc Randolph got to work. Initially, the service allowed the customers to rent a DVD for seven days, but in 1999, Hastings and Reed implemented a subscription service and the customers could pay a fixed monthly fee to rent an unlimited number of DVDs. Sounds familiar? Maybe the initial idea was a bit more analogous than today but the concept was quite similar. Netflix became a staple platform when it comes to streaming services and it is now worth USD 274.84 billion.

Evolution of Payment Systems

Digital payments and eCommerce are indispensable tools that go hand in hand and that have undergone tremendous change over the past decade. Thanks to online payment systems, eCommerce platforms can now be part of our day to day routine. We now enjoy safe, fast, and convenient transactions thanks to the brilliant minds of several engineers and developers such as Dan Kohn, Max Levchin, Peter Thiel, Luke Nosek, and even Elon Musk. Many tech innovators contributed to the development of digital transactions, and some of the most notable pioneering companies include Minitel and Bildschmirtext, who brought non-secure online shopping to Europe in the 1980s, Amazon, Pizza Hut, and Paypal who offered the first money transfer services in the 1990s, and the first mobile companies Ericsson and Telemer, who introduced mobile ticket purchasing in 1999. From there, things evolved quickly and we now have a wide range of platforms, apps, and websites that allow us to make online payments in just a few seconds.

The Influence of Marketplaces

Online shopping evolved at an accelerated pace as people became aware of its many advantages. An important portion of online shopping takes place on marketplace platforms, which changed the way we shop. The popularity of marketplace shopping is owed to a wide range of factors including convenience, diversity, speed, competitive pricing, and effective marketing. Buyers are compelled to purchase from online marketplaces as these platforms are reliable, offer a wide range of products and services, have good customer support, offer loyalty programmes and discounts, and are extremely user-friendly. They also provide brands and sellers with a cost-effective and accessible route to new markets and new clients, enabling them to grow their businesses.

If at the beginning of the article, you were wondering who invented eCommerce, now you probably know that several brilliant minds contributed to the industry that we get to enjoy today. From Aldrich to Musk, eCommerce was created pixel by pixel and bit by bit, through hard work, innovation, and strokes of genius. If you are already running an eCommerce site, we’d recommend ordering an eCommerce audit so you can find out how you can grow your sales and make it a highly profitable venture.