25 Jan

Written by Kathryn Vercillo on January 25, 2010

We’re giving away an Amazon voucher. See the end of this post for details!

Online shopping is something that most of us take for granted these days. We enjoy the convenience and other benefits of shopping online. However it wasn’t that long ago that we couldn’t shop online from home at all. Online shopping didn’t even develop until the mid-1990’s. When we remember that, we realize that we’re still in the early stages of online shopping. We’re still learning what works, what doesn’t and how we can improve this great shopping option so that it’s even better in the future than it is today. Let’s take a look at the history of online shopping so we can see how far we’ve come to date.

Before Online Shopping: What It Required to Start Shopping Online

There is some history of online shopping that dates back to the late 1970’s and early 1980’s. However most of this was theoretical. The Internet was neither widespread in use nor fast enough to accommodate e-commerce at this time. As a result, although there were steps made to make online shopping happen back then, not much really took place that relates to the online shopping tools we use today.

There were a few different things that had to happen before online shopping could become an option for us. Once those things had occurred, we were able to enter the early stages of shopping online. The things that had to happen included:

  • Regular access to the world wide web. We needed for there to be some way to access online stores before those stores could be up and running. The Internet had to develop to a point where in-home computer access was increasingly common. This didn’t happen until the early 1990’s.
  • Possibility of online banking. There needed to be some method of payment that would work online before online shopping could happen. It wasn’t until 1994 that this type of option became truly available for potential online retailers to take advantage of.
  • Early adopters to test it out. Companies needed to be willing to take a risk on this new form of reaching their customers.
The First Online Bookstore
You probably know that Amazon was one of the first online retailers so you might think that it was certainly the first online bookstore. However that isn’t actually the case. In 1992, several years before Amazon was launched, the first-ever online bookstore was opened by a man named Charles Stack. Originally called Book Stacks Unlimited it eventually become Books.com.
Pizza Hut, eBay and Amazon Break Ground
The first businesses to really make shopping online popular may (or may not) be the ones that you would think of first today. The two leading businesses that really got things going in the world of online shopping were Amazon and eBay. However neither of these was the first widely-recognized name to offer online shopping. That honor actually goes to Pizza Hut which developed an online ordering and payment system as early as 1994 for testing in some areas. Interestingly, although they started online shopping options back then, it wasn’t until 2007 that this option became available for every single one of their locations. Growth of the Internet, increased Internet speeds and other technological advances were what eventually made this happen.
Amazon was the first big online retailer to develop, launching back in 1995. It wasn’t long at all before eBay followed suit. These two businesses remain among the top online shopping sites today. The differences between them foreshadowed the different routes that online shopping would take over time. On the one hand you have a huge store that offers a lot of different merchandise of its own. And on the other, you have an auction site where the average person can advertise their products for sale in auction format. Both styles of online shopping are different from one another and both are quite popular.
Security Threats and the Dot-Com Bust
There were two major problems that threatened the viability of online shopping at the end of the twentieth century. The first problem was that hackers were causing a lot of identity theft issues for people who were shopping online. The second problem was that the dot-com bust resulted in a number of online retailers going bankrupt. These two things, particularly when combined together, held the potential to ruin online shopping for good. However that isn’t what happened. Instead, security was strengthened and stores came back. This shows that there is a high demand for online shopping in our society.
Twenty-first Century Changes to Online Shopping
Online shopping continues to grow and change in the twenty-first century. Some of the major changes that have occurred include:
  • Large increase in the number of online stores. This includes both online counterparts to brick-and-mortar stores as well as new web-only stores.
  • Advances in mobile shopping technology. We’re able to shop from our phones, receive mobile coupons and use geolocation services to find stores near us. All of this makes mobile web shopping much more common than ever before.
  • Increase in the number of “deal of the day” sites. We’re seeing a strong push from online retailers who are offering a deal of the day to entice customers to do more online shopping.
  • Online shopping has become increasingly affordable. Reducing the cost of running a store means that retailers can pass savings on to others. Combine that with the growth in popularity of online discount codes and you’ve got a great deal when shopping online.
QUESTION AND GIVEAWAY INFORMATION
We’re giving away a £10 Amazon voucher to the best commentors on our site. We’ve got two vouchers to give away. You can win if you leave the most number of comments on the site this week OR if you leave us the most unique and interesting comment of the week.
Rules:
  • Comments must be reasonable entries. Single-word entries repeated over and over don’t count for “most comments”. Make sure that you say something meaningful.
  • Contest begins immediately. Contest ends 24th January 2010.
  • Winners will be notified by email. Make sure to leave your email address or blog site with email contact info in your comment.
A question to kick things off:
What do you think online shopping will look like in five years? What will be different? What will be the same?

Hey, seems you’re new here, you may want to subscribe to our RSS feed, so you will be the first to get our free money saving tips. New today, free Blue Chip Vacations Discount Codes. Get 20% off stays of 3+ nights at selected ROCKLANDS apartments in NEWQUAY when taken between 09.12.09 and 27.03.10. Thanks for visiting!

One Comment

  1. 1

    Russel
    January 25th, 2010

    Nice little post…consider me among the converted to online shopping. It’s just too easy, convenient and fun to ignore. And if I may, I recommend users check out Sortprice.com as their de facto price comparison site–I’ve found they have the best selection of varying merchants, meaning better selections and higher probability of saving some money.

Leave a Response

About the authors

Kathryn

We are Kathryn and Captain Frugal two money saving fanatics. Kathryn is a freelance writer living in San Francisco which means that she's had to work hard to maintain a frugal budget. Captain Frugal learned from a young age that a penny saved is a penny earned, he's made it his life's mission to beat "the system" a few cents at a time. "Living the high life is easy!" say's captian frugal, "all you need is a little creativity, to improve your lifestyle and still save money!

British Blogs