How online shopping has changed over the past 30 years | Let’s talk about techniques and innovation
Alpine Rings has compiled a list of how online shopping has changed over the past 30 years using data from a variety of sources including The New York Times and NBC News.
How online shopping has changed over the past 30 years
How online shopping has changed over the past 30 years
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In August 1994, the New York Times called it: “Attention Shoppers: Internet is Open”. At this time, computers were quickly becoming commonplace in many American homes, and a burgeoning e-commerce scene led by Amazon and several other newly-created companies was revolutionizing shopping by making it ever cheaper, more convenient, and accessible.
Alpine Rings has compiled a list of how online shopping has changed over the past 30 years, drawing on data and research from a variety of sources, including The New York Times and NBC News. From the very first online transaction in 1979 to today, online shopping has evolved rapidly due to technological breakthroughs, advanced monetization methods and platforms, and tremendous changes in consumer behavior. Given the outsized influence of online sales today, it’s hard to believe that e-commerce is just over 40 years old.
Consumers were captivated by the ease of access to a 24/7 online shopping space at the click of a button, and even more so by the fact that they could shop without enduring the traffic. Powerful e-commerce sites such as Amazon and eBay emerged in the mid-1990s. Google introduced itself to the world in 2000; and in 2010, Cyber Monday sales in the United States topped $1 billion for the first time.
Keep reading to learn more about the e-commerce revolution.
1991: Internet goes public
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In 1991, the National Science Foundation lifted restrictions on commercial use and the Internet officially became available to the public. It was a pivotal moment for the e-commerce industry, opening doors in the following years for everyone from independent Etsy sellers to giant corporations like Walmart to start selling online in the years to come.
1994: Netscape becomes the first web browser
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Do you remember Netscape? It was the web browser that created an encryption certificate and launched its first web browser, Mosaic Netscape 0.9, in October 1994. Netscape provided a secure medium for data transmission and pioneered the definition of Secure Socket Layer (SSL), a security protocol. between a server and a client. With the emergence of online shopping, it was important for consumers to have secure channels for online communications and transactions. This security measure is still used today.
Also in 1994, Amazon was founded as a bookseller and became one of the first sites to sell products online.
1995: Launch of Amazon and eBay
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In July 1995, Jeff Bezos opened the virtual doors of the newly created Amazon. In its first month, the company sold books to buyers in 45 countries and all 50 states. It was also during this year that Pierre Omidyar founded an online auction and shopping site called eBay.
1998: PayPal is born
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Originally named Confinity, PayPal made its debut on the e-commerce scene as a digital payment platform. Small businesses, online sellers and consumers have been drawn to the concept of sharing their email and banking information for quick and inexpensive payments. PayPal became an even more profitable business as the company charged fees to its users.
1999: Alibaba enters the e-commerce space
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A former English teacher named Jack Ma teamed up with a group of friends to create the online marketplace Alibaba Group, now the largest e-commerce site on the planet.
Ma traveled to the United States from China, determined to further his education, and during the trip he noticed the absence of Chinese companies in the growing e-commerce space. Ma came up with the idea to launch Alibaba’s website, which was aimed at Chinese companies and eventually attracted investors. Alibaba grew into a multi-billion dollar online shopping powerhouse that is still used today through its three e-commerce sites Alibaba.com, Taobao and Tmall.
2000: Google introduces AdWords as Walmart launches its website
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The turn of the century marked the introduction of Google AdWords as a way for e-commerce businesses to advertise to users online. 2000 also marks the year Google practically invented pay-per-click advertising. At the same time, megastore Walmart launched its website to enable online sales.
2005: Amazon Prime, the beginnings of Etsy
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By launching its Amazon Prime service, Amazon allowed its members free two-day shipping for a fixed annual fee. At that time, the e-commerce giant was selling more than just books: consumers could find just about anything on Amazon. This year also saw the creation of Etsy, an e-commerce community focused on crafts and supporting small businesses.
2006: Launch of Shopify
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Shopify, a Canadian e-commerce platform used to create and manage online stores, launched in 2006 to offer online retailers a variety of services including shipping, marketing and engagement tools. The platform joined the mobile boom in 2010 when it launched its first free mobile app on Apple’s App Store.
2007: Smartphones, Hulu and Walmart’s online pickup services are born
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2007 was a pivotal year for technology that brought about serious changes in online shopping. Smartphones arrived this year with the first iPhone; Hulu, a subscription-based streaming platform, debuted; and Walmart also launched its site-to-store option, giving consumers the option to buy online and pick up (sometimes same day) in-store.
2008: Groupon debuts
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Groupon entered the market in 2008 with a simple concept: introduce consumers to local businesses with daily deals. The company’s target demographic was young, single, educated women. All sorts of deals can be found on the site, from pizza discounts to spa treatments. At the time, Groupon became one of the leading discount sites, reaching a $750 million IPO.
2009: Launch of cryptocurrency and BigCommerce
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Bitcoin, one of the main forms of cryptocurrency, was launched in 2009. Its advent forever changed the way consumers buy items online and continues to be a leader in crypto. In the same year, BigCommerce, an online storefront service, was launched to provide software to various businesses.
2011: Google Wallet inaugurates a new digital payment method
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Google introduced Google Wallet, a debit card-linked smartphone service, in 2011. Google Wallet provides features such as payment history, allowing users to see which card was used for a transaction as well as the transaction time. Google Pay is widely accepted by online retailers.
Google Wallet in 2018 merged with Android Pay to become Google Pay.
2014: Apple Pay introduced as a payment method
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Apple Pay allowed consumers to pay for items directly with their iPhone. Apple Pay works the same way as a debit or credit card: instead of pulling out a wallet or purse, consumers can make purchases using their iPhone. Seven years later, this popular payment method is still widely accepted in physical stores and online stores.
2017: Instagram and BigCommerce join forces
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This collaboration helped Instagram business accounts advertise their products to consumers, giving Instagram users the ability to purchase directly from within the app itself. This easygoing feature gave Instagram users a seamless way to shop for items by endlessly scrolling and swiping across the social platform without ever leaving the app.
2020: E-commerce growth explodes due to COVID-19
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When the COVID-19 pandemic began its relentless march across the world, consumers shifted gears, making purchases online that they would usually make in person at physical stores.
Food, household items and clothing were among the most commonly purchased items online during the health crisis. Instacart reportedly generated $1.5 billion in revenue and Amazon saw a 220% increase in profits, and this growth in online shopping doesn’t appear to be slowing anytime soon.
This story originally appeared on Alpine Rings and was produced and distributed in partnership with Stacker Studio.
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