One of the earliest forms of trade conducted online was IBM's online transaction processing OLTP developed in the 1960s, which allowed the processing of financial transactions in real-time. The computerized ticket reservation system developed for American Airlines called Semi-Automatic Business Research Environment SABRE was one of its applications. There, computer terminals located in different travel agencies were linked to a large IBM mainframe computer, which processed transactions simultaneously and coordinated them so that all travel agents had access to the same information at the same time. At some point between 1971 and 1972, students at Stanford and MIT used the internet precursor ARPANET to make a deal to exchange marijuana, but the interaction does not qualify as e-commerce because no money was transferred online.
The landscape of online shopping as we know it today took shape with the rise of the Internet. Initially serving as a mere advertising platform, the Internet transitioned swiftly into a dynamic space for actual online transactions. This transformation was fueled by the development of interactive web pages and secure transmission protocols, marking a pivotal moment in 1994 with the first online sales of Sting's album, Ten Summoner's Tales.
This milestone event set the stage for the diversification of online retail, with early adopters such as wine, chocolates, and flowers paving the way. These products became pioneers in the e-commerce realm, capturing the attention of a growing audience. Researchers identified a crucial factor for internet success – the suitability of products for online transactions. Generic items that didn't necessitate physical interaction gained traction, propelling the online shopping trend forward.
In its nascent stages, online shopping faced a limited audience. The early adopters were predominantly affluent males aged 30 and above. However, this demographic landscape underwent significant changes over time, and the online shopping sphere became more inclusive.
Over the years, the United Kingdom has witnessed a substantial shift in consumer behavior, with online shopping accounting for a noteworthy percentage of retail transactions. The extent of this influence varies depending on the product category, highlighting the diverse ways in which consumers engage with online platforms.
Growth in online shoppers
As the revenues from online sales continued to grow significantly researchers identified different types of online shoppers, Rohm & Swaninathan identified four categories and named them convenience shoppers, variety seekers, balanced buyers, and store-oriented shoppers. They focused on shopping motivations and found that the variety of products available and the perceived convenience of the buying online experience were significant motivating factors. This was different for offline shoppers, who were more motivated by time saving and recreational motives.
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