E-Commerce was birth out of the World-Wide-Web (WWW). Although many people use the terms WWW and Internet interchangeably, the WWW is just one of the many services available on the Internet. The aspect of the WWW actually is a relatively new aspect of the Internet. While the Internet was developed in the late 1960s, the WWW came into existence more than a decade ago - in the early 1990s. Since then, however, it has grown phenomenally to become the most widely used service on the Internet.

Although the Web has made online shopping possible for many businesses and individuals, in a broader sense, e-commerce has existed for many years. For decades, banks have been using electronic funds transfer (EFT, also called wire transfer), which are electronic transmissions of account exchange information over private communication networks.

Businesses also have been engaging in a form of electronic commerce, known as electronic data interchange, for many years. Electronic Date Interchange (EDI) occurs when business transmits computer-readable data in a standard format to another business. In the 1960s, businesses realized that many of the documents they exchange related to the shipping of goods - such as invoices, purchase orders, and bills of lading - and included the same set of information for almost every transaction. They also realized that they were spending a good deal of time and money entering these data into their computers, printing paper forms, and then re-entering the data on the other side of the transaction. Although the purchase order, invoice, and bill of lading for each transaction contained much of the same information such as item numbers, descriptions, prices and quantities - each paper form had its own unique format for presenting that information. By creating a set of standard formats for transmitting that information electronically, businesses were able to reduce errors, avoid printing and mailing costs, and eliminate the need to re-enter the data.

ELEMENTS OF TRADITIONAL COMMERCE (seller side)

1. Conduct market research to identify customer needs.
2. Create product or service that will meet customer's needs.
3. Advertise and promote product or service.
4. Negotiate a sale transaction, including:
* Delivery logistics
* Inspection, testing and acceptance
5. Ship goods and Invoice customer
6. Receive and process customer payments
7. Provide after-sales support, maintenance and warranty service.

There are more activities than business processes in the traditional procedure. There are also more incompatible systems which the EDI does not communicate well with different Operating systems.

Electronic Commerce has brought the solution to this problem and drastically altered the structure and process for business transactions across networks.

Street Smart

Replying to [Street Smart]:
Like it or not, e-commerce is here to stay, and it is slowly becoming a part of our lives, like the cell phone, and the television set.

Business took a turn in 1990s and the change has shifted the rules have changed, the game is the same, and the methods and playing field has also been changed. Small businesses do not look any different from large corporation, and the boundaries have been extended and there is no time frame. Business run 24 hours a day and 7 days a week, non stop. Geographically it has stretched to the four corners of the world, and the means to reach these markets are just a fraction of the cost from what it used to be, by fax or telegraphs, it has emails, and communication by messages, and video conferencing from the desk top.

Executives can work on the move, while travelling on the plane, or in a car or train, the efficiency of the communication has become any time, any where and at no cost. That is what makes it so viable and promising.

Business people have no choice, to work with it and survive or to leave it out completely, stagnate and die of natural death.

Street