1. **The Early Stages of Online Commerce:**
– In the 1960s, IBM developed a system called OLTP, which facilitated real-time financial transactions.
– One notable example was the SABRE system for American Airlines, which allowed travel agencies to access a central IBM computer, enabling simultaneous transactions and information sharing.
2. **The Transition to Online Shopping:**
– Initially, the internet was primarily used for advertising, providing information about products but not enabling actual transactions.
– The shift to online shopping occurred with the introduction of interactive web pages and secure transmission protocols, which enabled safe electronic purchases.
3. **Milestones in Internet-Based Shopping:**
– The internet’s evolution into a shopping platform began around 1994, marked by the first online sale of Sting’s album “Ten Summoner’s Tales.”
– Subsequently, products like wine, chocolates, and flowers became early pioneers in online retail, driving the initial growth of internet-based shopping.
4. **Factors Driving the Success of Internet Commerce:**
– Research indicates that the suitability of products for online sales is closely linked to the success of internet-based commerce.
– Easily-describable products that customers do not need to physically examine were particularly successful in the early days of online shopping.
The customer base for online shopping has expanded significantly over time, moving beyond the initial narrow demographic of affluent, older males.
Today, internet-based commerce plays a crucial role in the UK retail sector, with sales figures varying across different product categories.
This shift has reshaped the retail landscape, providing consumers with greater convenience and accessibility, while also presenting both opportunities and challenges for businesses.
