The Rise of E-Commerce
How Online Shopping Changed Consumer Behavior
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E-commerce is the buying and selling of goods and services over the internet. Today it accounts for over 16% of all U.S. retail sales, totaling more than $1.2 trillion in 2025.
What is E-Commerce?
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The Early Beginnings
- 1979: Michael Aldrich connects a TV to a computer, inventing electronic shopping
- 1982: Boston Computer Exchange becomes one of the first online marketplaces
- 1994: First secure online transaction made using SSL encryption
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The Dot-Com Boom and Bust
- 1995: Amazon and eBay launch
- 1998-2000: Billions pour into internet startups
- 2000: The bubble bursts, but survivors like Amazon emerge stronger than ever
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Paypal
The Rise of Trust and Security
- 1998: PayPal launches as a secure payment processor
- 2004: PCI Security Standards Council established
- Customer reviews give shoppers social proof before buying
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How Online Shopping Changed Consumer Behavior
Shoppers now expect:Fast, free shippingEasy returnsPersonalized recommendationsInstant price comparisons
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E-commerce sales jumped 43% in 2020, from $571B to $815B. IBM estimates the pandemic pushed digital shopping adoption forward by five years.
The COVID-19 Acceleration
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60-70% of global online sales now happen on mobile devices TikTok, Instagram, and Pinterest let users shop without leaving the app Gen Z discovers products on social media before searching anywhere else
Mobile and Social Commerce
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The Future of E-Commerce
- AI personalizes your shopping experience in real time
- Augmented reality lets you try before you buy
- Global e-commerce projected to reach $8 trillion by 2027
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Summary
From a TV connected to a computer in 1979 to a $1.2 trillion industry today, e-commerce has completely transformed how we shop. Security innovations like SSL and PayPal built the consumer trust needed for online shopping to take off. The COVID-19 pandemic then accelerated digital adoption by nearly five years overnight. Today, mobile devices and social platforms like TikTok are redefining where and how purchases happen. Convenience, trust, and technology have driven every major shift along the way, and the biggest changes may still be ahead.
Next
Summary Question
What factor do you think had the greatest impact on e-commerce growth?
- SSL encryption (1994)
- Amazon and eBay launch (1995)
- COVID-19 pandemic (2020)
- Social commerce and TikTok
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Write a great text by clicking on Text in the left sidebar. Note: the fonts, size, and color should match the theme you're working on.
Sources
Library of Congress. (n.d.). History -- E-commerce: A research guide. Research Guides. https://guides.loc.gov/e-commerce/history U.S. Census Bureau. (2022, April 27). Annual retail trade survey shows impact of online shopping on retail sales during COVID-19 pandemic. https://www.census.gov/library/stories/2022/04/ecommerce-sales-surged-during-pandemic.html University of Texas Permian Basin. (n.d.). The evolution of e-commerce. UT Permian Basin Online. https://online.utpb.edu/about-us/articles/business/the-evolution-of-e-commerce/ Kaushik, V., & Goel, A. (2022). Buyers' trust and mistrust in e-commerce platforms: A synthesizing literature review. Information Systems and e-Business Management. https://pmc.ncbi.nlm.nih.gov/articles/PMC8581124/ Neufeld, D., & Roghanizad, M. (2018, January 23). Research: How customers decide whether to buy from your website. Harvard Business Review. https://hbr.org/2018/01/research-how-customers-decide-whether-to-buy-from-your-website
The Rise of E-Commerce
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Transcript
The Rise of E-Commerce
How Online Shopping Changed Consumer Behavior
start ➛
E-commerce is the buying and selling of goods and services over the internet. Today it accounts for over 16% of all U.S. retail sales, totaling more than $1.2 trillion in 2025.
What is E-Commerce?
continue ➛
The Early Beginnings
continue ➛
The Dot-Com Boom and Bust
continue ➛
Paypal
The Rise of Trust and Security
continue ➛
How Online Shopping Changed Consumer Behavior
Shoppers now expect:Fast, free shippingEasy returnsPersonalized recommendationsInstant price comparisons
continue ➛
E-commerce sales jumped 43% in 2020, from $571B to $815B. IBM estimates the pandemic pushed digital shopping adoption forward by five years.
The COVID-19 Acceleration
continue ➛
60-70% of global online sales now happen on mobile devices TikTok, Instagram, and Pinterest let users shop without leaving the app Gen Z discovers products on social media before searching anywhere else
Mobile and Social Commerce
continue ➛
The Future of E-Commerce
continue ➛
Summary
From a TV connected to a computer in 1979 to a $1.2 trillion industry today, e-commerce has completely transformed how we shop. Security innovations like SSL and PayPal built the consumer trust needed for online shopping to take off. The COVID-19 pandemic then accelerated digital adoption by nearly five years overnight. Today, mobile devices and social platforms like TikTok are redefining where and how purchases happen. Convenience, trust, and technology have driven every major shift along the way, and the biggest changes may still be ahead.
Next
Summary Question
What factor do you think had the greatest impact on e-commerce growth?
continue ➛
Write a great text by clicking on Text in the left sidebar. Note: the fonts, size, and color should match the theme you're working on.
Sources
Library of Congress. (n.d.). History -- E-commerce: A research guide. Research Guides. https://guides.loc.gov/e-commerce/history U.S. Census Bureau. (2022, April 27). Annual retail trade survey shows impact of online shopping on retail sales during COVID-19 pandemic. https://www.census.gov/library/stories/2022/04/ecommerce-sales-surged-during-pandemic.html University of Texas Permian Basin. (n.d.). The evolution of e-commerce. UT Permian Basin Online. https://online.utpb.edu/about-us/articles/business/the-evolution-of-e-commerce/ Kaushik, V., & Goel, A. (2022). Buyers' trust and mistrust in e-commerce platforms: A synthesizing literature review. Information Systems and e-Business Management. https://pmc.ncbi.nlm.nih.gov/articles/PMC8581124/ Neufeld, D., & Roghanizad, M. (2018, January 23). Research: How customers decide whether to buy from your website. Harvard Business Review. https://hbr.org/2018/01/research-how-customers-decide-whether-to-buy-from-your-website