The modern era of electronic commerce, or e-commerce, can be traced back to October 1994, when the first version of the Netscape browser was released to the public. This innovation made the internet more accessible to everyday users, paving the way for businesses to reach consumers online. By the late 1990s, electronic commerce was growing at an explosive rate, fueled by excitement over the internet’s potential to revolutionize global trade.
From August 1998 to mid-1999, the world economy was booming, and the information technology (IT) sector was expanding at an unprecedented pace—a phenomenon that became known as the dot-com bubble. Investors and entrepreneurs alike were eager to capitalize on the new digital frontier. The term “dot-com” became synonymous with innovation and limitless opportunity. During this period, even startups with little more than a website and a business plan could attract millions in funding. Many companies launched initial public offerings (IPOs) and raised vast sums of money despite never having made a profit.
However, this optimism was unsustainable. On March 10, 2000, the dot-com bubble burst. Overvalued internet companies saw their stock prices collapse, and by 2001, the market had entered a steep decline. Many dot-coms quickly burned through their venture capital and went bankrupt, leading to widespread skepticism about the future of online business. Between 2000 and 2003, analysts and journalists wrote what seemed like obituaries for e-commerce, describing it as a failed experiment.
Yet, by 2003, a new phase of growth began. The companies that had survived—such as Amazon and eBay—emerged stronger and more disciplined. They focused on sustainable business models, customer trust, and profitability. As the economy recovered, e-commerce evolved from speculation to a mainstream form of commerce.
Researchers began describing new hybrid models—“click and mortar,” “bricks and clicks,” and “cyber-enhanced retailing”—to capture how traditional retailers were integrating online and physical channels. This combination of digital innovation and real-world presence marked the true maturation of electronic commerce, transforming it into a permanent and vital part of the global economy.The Rise, Fall, and Rebirth of Electronic Commerce
