E-commerce has revolutionized the way we shop and has become an integral part of our daily routines. From its inception with eBay to the present-day hegemony of Amazon, e-commerce has gone through several transformations to meet the diverse shopping preferences of the customers.
The eBay Era
eBay was founded in 1995, and it was the first platform that linked buyers and sellers in a digital marketplace. It revolutionized the retail industry as it allowed anyone with an internet connection to sell their goods. It paved the way for small businesses and individuals to enter the marketplaces without having a physical store. eBay's auction model, where the buyer with the highest bid wins, further incentivized the users to bid aggressively. However, this model also led to a lot of scams and fraudulent activities.
The Dominance of Amazon
Amazon was founded in 1994 but it initially started as an online bookstore. Jeff Bezos quickly realized the potential of an online marketplace and decided to expand the operations. Today, Amazon dominates the e-commerce market with over 2.5 million active sellers. Amazon's focus on customer satisfaction and fast delivery has made it a preferred choice for most shoppers. Amazon's Prime membership, with its free and fast delivery options, has further increased its customer base. Amazon's acquisition of Whole Foods and launching of Amazon Go, its cashier-less convenience store, has shown its commitment to expand the retail industry and offer innovative solutions to its customers.
The Rise of Mobile Commerce
With the increasing use of smartphones and tablets, customers have started to prefer mobile commerce. Mobile commerce or M-commerce refers to the buying and selling of goods and services through mobile devices. A report by Statista suggests that mobile commerce will cover 72.9% of the total e-commerce sales by 2021. To keep up with this trend, eBay and Amazon have both launched their mobile applications to provide a seamless shopping experience to their customers. The use of popular apps such as Instagram and Facebook to promote and sell products has further augmented the prevalence of mobile commerce.
The Emergence of Social Commerce
Social media channels such as Facebook, Instagram, and Pinterest have also contributed to the evolution of e-commerce. Social commerce refers to buying and selling products through Social media channels. These platforms have millions of active users, and it offers an opportunity for businesses to showcase their products to a larger audience. Small businesses and individuals have been turned into entrepreneurs through social commerce. Instagram's shoppable posts and Facebook's marketplace are examples of how social media channels are capitalizing on the e-commerce market. Social commerce is still in its nascent stages, and it is estimated that it will be worth $604.5 billion by 2027.
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