History of online shopping | Global Encyclopedia

Summary

The COVID-19 pandemic has accelerated the adoption of online shopping, with internet sales skyrocketing to 30% in April 2020. Originating from early experiments like Jane Snowball's 1984 order via 'Videotex', the industry has evolved through innovations like NetMarket's secure transactions and Amazon's launch. Globalization and consumer behavior shifts played pivotal roles, with smartphones and internet accessibility propelling the online shopping revolution.

Takeaways

• 🛒 The COVID-19 pandemic has significantly increased online shopping, with many turning to e-commerce for essentials and non-essentials alike.
• 📈 Online sales have seen a dramatic rise during the pandemic, with statistics showing a jump from 2.8% to 30% in the UK within a few months.
• 🏡 The shift to online shopping has been a gradual process, with the roots of modern e-commerce dating back to the 1980s.
• 👵 The first recorded online shopping transaction was by a grandmother in England in 1984, using a remote control to order groceries via a 'Videotex' system.
• 🌐 The early 1990s saw the emergence of online marketplaces like NetMarket and the launch of major e-commerce players such as Amazon and eBay.
• 📈 Globalization in the mid-1990s played a significant role in the growth of e-commerce by enabling rapid scaling of production and meeting consumer demands.
• 📱 The widespread adoption of smartphones by 2017 facilitated a significant increase in online shopping, with many consumers making regular online purchases.
• 🌟 The success of e-commerce is attributed not only to technological advancements but also to a shift in consumer behavior and a desire for convenience.
• 🔍 The internet has empowered consumers with the ability to research products extensively, compare prices, and make informed purchasing decisions.
• 📊 The pandemic has accelerated the adoption of online shopping, making it a mainstream behavior and potentially shaping the future of retail.

Q & A

How has the Covid-19 pandemic impacted online shopping habits?

The Covid-19 pandemic has significantly increased online shopping as people relied on e-commerce for contact-free and fast delivery of essentials and non-essentials, leading to a spike in online sales.

What was the percentage of internet sales of total retail sales in the UK in April 2020, and how did it change from 2006?

In April 2020, internet sales as a percentage of total sales in the UK shot up to 30%, compared to 2.8% in November 2006.

What was the first item ever purchased online through a digitally secure transaction?

The first item purchased online through a digitally secure transaction was a Sting CD, retailing at $12.48 (£10), on NetMarket in 1994.

Which company was one of the early adopters of online sales, and what year did they start?

Pizza Hut was one of the early adopters of online sales, starting in 1994 through their 'PizzaNet' portal.

What was the role of globalization in the growth of online shopping in the mid-1990s?

Globalization in the mid-1990s played a significant role by enabling production to scale up quickly and significantly, making e-commerce a viable and highly profitable selling channel.

How did the consumer shift in behavior contribute to the rise of online shopping?

Consumers embraced online shopping as a democratized way to consume, conducting extensive research and evaluating price-to-value ratios before making purchases.

What was the approximate smartphone penetration rate worldwide by 2017, and how did it influence online shopping?

By 2017, smartphone penetration hit 80% worldwide, which greatly facilitated the increase in online shopping as more consumers had access to online platforms through their mobile devices.

Who was the first person to use a remote control to order groceries, and what was the technology used?

Jane Snowball, a 72-year-old grandmother, was the first person to use a remote control to order groceries using the 'Videotex' system developed by Michael Aldrich in 1984.

What was the original purpose of the Videotex system used by Jane Snowball?

The Videotex system was originally conceived as a social service for the elderly and disadvantaged, enabling them to order groceries and have them delivered to their homes.

What was the inflection point for online shopping as we know it today, and when did it occur?

A real inflection point for online shopping as we know it today could be traced to around 2017, when many Americans were shopping online as frequently as doing routine chores.

What percentage of Americans used a computer or phone to buy something online in 2017, according to the Pew Research Center?

According to the Pew Research Center, eight in 10 Americans used a computer or phone to buy something online in 2017.