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Savvy entrepreneurs diving into the eCommerce world have a lot to learn about this industry. In this article, we’re going to cover all essential eCommerce basics every retailer needs to know, but before we do that, let’s answer this fundamental question.

Ecommerce, or electronic commerce, refers to transactions conducted via the internet. Every time individuals and companies are buying or selling products and services online they’re engaging in eCommerce. The term e-commerce also encompasses other activities including online auctions, internet banking, payment gateways, and online ticketing.

The first e-commerce transaction was made in 1994. A guy named Phil Brandenberger used his Mastercard to buy Sting’s Ten Summoners’ Tales via the internet for $12.48. This particular transaction made history and signaled to the world that the “internet is open” for e-commerce transactions. Why? Because it was the first time that encryption technology was used to enable an internet purchase.

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