E-COMMERCE REPORT SCRIPT | BASED ON SOURCED ACADEMIC RESEARCH | APRIL 2026
REPORT SCRIPT
Understanding
E-Commerce:
History & How It Works
A plain-language report script with real-world examples — based on sourced academic research
PURPOSE Explain e-commerce history and how it works in plain, everyday language
AUDIENCE General audience, students, presenters, or anyone new to the topic
FORMAT Narrated report script with examples, analogies, and key facts
BASED ON 17 sourced citations — Library of Congress, Stripe, HowStuffWorks,
ResearchGate, IBM, and more
SECTIONS Part 1: History of E-Commerce | Part 2: How E-Commerce Works
DATE April 2026
📋 How to Use This Script
This document is written as a REPORT SCRIPT — meaning it is designed to be read aloud,
presented, or used as a study guide. Each section has three layers:
▶ NARRATION BOXES (blue left border) — these are what you say out loud.
📌 EXAMPLE BOXES (gold left border) — real-world situations that make the idea concrete.
🟢 KEY FACTS (green left border) — important statistics and quotes from the research.
Page 1 | E-Commerce Report Script | History & How It Works
E-COMMERCE REPORT SCRIPT | BASED ON SOURCED ACADEMIC RESEARCH | APRIL 2026
PART 1 OF 2
History of E-Commerce
Where it came from, how it grew, and the people who built it
Chapter 1: What Exactly Is E-Commerce?
▶ NARRATION — READ ALOUD OR PRESENT THIS:
Let’s start with the basics. E-commerce — short for electronic commerce — simply means
buying or selling something using the internet.
Every time you order food on an app, buy shoes from a website, or pay a bill online — that is e-
commerce. It happens millions of times every second around the world.
But here’s what surprises most people: e-commerce did NOT start with the internet. It actually
started decades before most of us were even born.
📌 EXAMPLE: What counts as e-commerce?
✔ You order a pizza through an app and pay online — e-commerce.
✔ A company orders 1,000 office chairs from a supplier through an online portal — e-commerce.
✔ You subscribe to Netflix and your card is charged monthly — e-commerce.
✔ You sell a pair of sneakers on eBay to someone in another city — e-commerce.
✘ You go to a store and pay cash at the counter — NOT e-commerce (that is traditional retail).
🌍 In 2021, global e-commerce generated $4.9 TRILLION in sales. By 2025, it is projected to exceed
$7 trillion. (Source: UT Permian Basin Online)
Chapter 2: The Very Beginning — 1948 to 1979
▶ NARRATION
Most people think e-commerce started with Amazon in the 1990s. But the real story starts
much, much earlier — in the 1940s.
After World War II, during the Berlin Blockade of 1948, West Germany had a problem: they
were cut off from supplies. Their solution? They used a machine called a telex — basically an
electric typewriter that could send messages over telephone wires — to order what they needed
from far away.
This was the first time in history that commerce — buying and selling — happened
electronically, without anyone being in the same room.
📌 EXAMPLE: The Telex Machine — 1948
Think of a telex like an old-fashioned version of sending an email.
Instead of typing on a computer, you typed on a special machine.
The message traveled through telephone wires and printed out at the other end.
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E-COMMERCE REPORT SCRIPT | BASED ON SOURCED ACADEMIC RESEARCH | APRIL 2026
West Germany used this to order food, fuel, and supplies during the blockade.
It was slow and clunky — but it worked. And it proved a big idea:
→ You don’t need to be in the same place to do business.
▶ NARRATION — CONTINUE
Then came the 1960s. Businesses wanted something better than telex. They wanted
computers to talk directly to each other — and that’s where EDI was invented.
EDI stands for Electronic Data Interchange. Think of it as a language that computers use to
share business paperwork — like invoices, orders, and shipping records — without any human
having to type it all out.
📌 EXAMPLE: What EDI looks like in real life
Imagine a grocery store that sells 500 cans of soup every day.
Before EDI: A manager had to COUNT the cans, WRITE an order, FAX it to the supplier, and WAIT.
After EDI: The store’s computer notices the cans are running low, AUTOMATICALLY sends a
digital order to the supplier’s computer, and the delivery is scheduled. No human needed.
Today, this still happens billions of times a day between companies worldwide.
Every time a supermarket restocks automatically, EDI is behind it.
▶ NARRATION — THE INVENTOR OF ONLINE SHOPPING
Now — the most important person in this early era. His name is Michael Aldrich, a British
inventor. And in 1979, he had an idea that changed everything.
He was talking with his wife about how annoying it was to drive to the supermarket every week.
And he thought: what if the supermarket could come to us? What if we could shop from home?
So he grabbed a regular television set, modified it, connected it to a computer through a
telephone line, and created the world’s first online shopping system.
📌 EXAMPLE: Michael Aldrich’s invention — 1979
What he used:
• A modified TV screen (this was the display)
• A telephone line (this was the connection)
• A computer (this was the shop’s system)
What it could do:
• A person at home could browse products on the TV screen
• They could place an order
• Payment data was sent SECURELY through the phone line
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E-COMMERCE REPORT SCRIPT | BASED ON SOURCED ACADEMIC RESEARCH | APRIL 2026
Why it mattered:
• This was the blueprint. Every online store today — Amazon, Shopee, Lazada —
is built on the same basic idea Aldrich had in 1979.
• The word ‘e-commerce’ didn’t exist yet, but the concept was born.
💡 Michael Aldrich’s inspiration? His wife's weekly supermarket trip. The best inventions often come
from everyday frustrations. (Source: Fleximize)
Chapter 3: The First Real Platforms — 1980 to 1994
▶ NARRATION
By the early 1980s, people started building actual marketplaces online — not just experiments,
but real places where real goods were bought and sold.
The first one was called the Boston Computer Exchange, started in 1982. It was basically an
online marketplace where people could buy and sell used computers.
Think of it like the Craigslist or Facebook Marketplace of 1982 — except it ran through phone
lines and required a lot more patience.
📌 EXAMPLE: Boston Computer Exchange (1982) vs. Facebook Marketplace (Today)
Boston Computer Exchange (1982):
• You posted your used computer on a bulletin board system (BBS) — like a digital notice board
• Buyers would call in or connect through their phone to see listings
• No photos, no instant chat, no reviews
• But it worked! Real computers sold for real money
Facebook Marketplace (Today):
• You post your item in 30 seconds with photos
• Buyers message you instantly
• Payment can be handled digitally
→ 42 years apart. Same basic idea: sell your stuff to someone online.
▶ NARRATION — THE WORLD WIDE WEB CHANGES EVERYTHING
Then, in 1990, a scientist named Tim Berners-Lee invented something called the World Wide
Web — which is what we commonly call ‘the internet’ today.
Before this, computers could share data — but there was no easy way for regular people to
browse, click, and explore. The web changed that. Suddenly, anyone with a computer could
visit a website.
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E-COMMERCE REPORT SCRIPT | BASED ON SOURCED ACADEMIC RESEARCH | APRIL 2026
And in 1991, the government officially opened the internet for commercial use. Businesses
could now have websites. E-commerce could finally reach normal people.
📌 EXAMPLE: Life before and after the World Wide Web
BEFORE the Web (pre-1990):
• Only scientists, military, and universities used computer networks
• There were no websites, no browsers, no clicking
• Sharing data required technical knowledge
AFTER the Web (1991 onwards):
• Anyone could open a browser and visit a ‘page’
• Businesses could show products with pictures and prices
• Customers could find, browse, and eventually — BUY online
It’s like the difference between having a library that only professors can enter
vs. a library that anyone can walk into, read, and borrow books from.
The $12.48 That Changed History
▶ NARRATION
But here’s the moment that everyone in e-commerce history talks about. August 11, 1994.
A 21-year-old named Dan Kohn had built a website called NetMarket. And on that day, his
friend Phil Brandenberger used it to buy a music CD — a Sting album called Ten Summoner’s
Tales — for $12.48.
The payment was made using a brand-new technology called SSL encryption, which scrambled
the payment data so it couldn’t be stolen while travelling through the internet.
The next day, the New York Times ran the headline: 'Attention Shoppers: Internet is Open.' And
from that day forward, the world knew that safe online shopping was real.
"With the headline ‘The Internet is Open’, the August 12, 1994 New York Times
chronicled what was apparently the first retail transaction on the Internet using powerful
data encryption software designed to guarantee privacy." — New York Times, August 12, 1994
(cited in academic research)
📌 EXAMPLE: Why $12.48 was so important
Before this sale:
• People were SCARED to use their credit card online
• No one knew if it was safe to type your card number into a computer
• Most people thought internet shopping was for hackers and tech experts
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E-COMMERCE REPORT SCRIPT | BASED ON SOURCED ACADEMIC RESEARCH | APRIL 2026
After this sale:
• SSL encryption PROVED that card data could travel safely
• Businesses had proof that customers would actually pay online
• The gates opened. Amazon launched the very next year.
Imagine if that $12.48 Sting CD had never been sold. Would Amazon exist today?
🔒 SSL (Secure Socket Layer) was invented by Netscape in 1994. It is the technology behind the
padlock icon you see in your browser today. (Source: Miva Blog)
Chapter 4: Amazon, eBay & the Big Boom — 1994 to 2001
▶ NARRATION
Now we’re in the mid-1990s. The internet is public, SSL makes payments safe, and two
entrepreneurs are about to change the world.
The first is Jeff Bezos. In 1994, Bezos quit his Wall Street job, drove cross-country to Seattle,
and started an online bookstore from his garage. He called it Amazon.
📌 EXAMPLE: Amazon’s first month — July 1995
Jeff Bezos ships the first book: Fluid Concepts and Creative Analogies by Douglas Hofstadter.
Within 30 days of launching:
• Books shipped to customers in ALL 50 U.S. states
• Books shipped to customers in 45 countries
• Weekly sales: $20,000
Why books? Because Bezos knew:
• Books are cheap and easy to ship
• Publishers had already digitized their catalogs — so listing was easy
• A book in Seattle is the same as a book in Tokyo — no quality surprises
He wasn’t just selling books. He was proving that you could sell ANYTHING online.
▶ NARRATION — ENTER EBAY
The second entrepreneur is Pierre Omidyar. In 1995, he built a simple website called
AuctionWeb — later renamed eBay.
Omidyar wanted to see if people would buy each other’s used stuff online. To test it, he listed
something he had lying around: a broken laser pointer.
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E-COMMERCE REPORT SCRIPT | BASED ON SOURCED ACADEMIC RESEARCH | APRIL 2026
He was SHOCKED when it sold for $14.83. Worried the buyer was confused, he emailed to
confirm it was broken. The buyer replied: ‘I’m a collector of broken laser pointers.’
That moment taught the world a powerful lesson about e-commerce: every product has a buyer.
You just need to reach them.
📌 EXAMPLE: eBay’s growth in numbers
1995 — eBay launches as AuctionWeb. A broken laser pointer sells for $14.83.
1996 — 2 employees. $7.2 MILLION in goods sold.
1997 — A Beanie Babies craze drives sales to $95 MILLION.
2007 — 220 MILLION registered users. $52.5 BILLION in annual auctions.
Lesson: eBay did not sell things. It created a place where EVERYONE could sell things.
This model is called a MARKETPLACE — and it is how Shopee, Lazada, and Etsy work today.
The Dot-Com Bubble: Too Much, Too Fast
▶ NARRATION
Between 1998 and 2000, everyone went crazy for internet companies. Investors poured billions
of dollars into any website with a ‘.com’ at the end — even if the company had no real business
plan.
Then in 2000, the bubble burst. Hundreds of companies went bankrupt overnight. One famous
example: [Link], an online fashion store, burned through $185 million in just 18 months
before collapsing.
But here’s the important part: even though the companies failed, the infrastructure they built —
the fiber cables, the server farms, the logistics networks — survived. And it became the
foundation of the e-commerce we have today.
WHAT THE DOT-COM BUBBLE DESTROYED WHAT IT LEFT BEHIND
Hundreds of overfunded, unprofitable Miles of fiber-optic internet cables across the
companies world
Billions in investor money Server infrastructure that still runs the internet
[Link] ($185M gone in 18 months) Payment networks that Amazon and eBay kept
using
[Link] (famous for its puppet mascot, then A generation of engineers who knew how to
bankruptcy) build online businesses
The dot-com crash of 2000 hurt investors — but it made e-commerce stronger. The infrastructure it
left behind is what made Amazon, Google, and modern apps possible. (Source: UT Permian Basin
Online)
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E-COMMERCE REPORT SCRIPT | BASED ON SOURCED ACADEMIC RESEARCH | APRIL 2026
Chapter 5: The Modern Era — 2004 to Today
▶ NARRATION
After the crash, the companies that survived — like Amazon and eBay — became stronger than
ever. And new ones started to appear.
In 2005, Amazon launched Amazon Prime. For a flat yearly fee, customers got FREE two-day
shipping on almost everything. This was a game-changer. Before this, shipping was slow and
expensive. Amazon Prime made buying online feel as easy as going to a store.
📌 EXAMPLE: How Amazon Prime changed everyone’s expectations
Before Amazon Prime:
• Ordering online = waiting 7–14 days for delivery
• Shipping fees of $5–15 per order
• Online shopping felt slower and pricier than going to a mall
After Amazon Prime (2005):
• Order today, receive in 2 days. FREE.
• Suddenly online shopping felt FASTER than driving to a store
• Every other online store had to compete: Walmart, Target, and thousands of brands
were forced to offer faster, cheaper shipping or lose customers
Prime didn’t just help Amazon — it raised the standard for the ENTIRE industry.
Shopify: Giving Everyone a Store
▶ NARRATION
In 2006, three friends — Tobias Lütke, Daniel Weinand, and Scott Lake — tried to sell
snowboarding equipment online. They couldn’t find good software to build a store, so they built
their own.
Then they realized: other businesses need this tool too. They stopped selling snowboards and
started selling the platform itself. That platform is Shopify.
Today, Shopify powers over 1.7 million businesses worldwide — from solo sellers to major
brands. It’s the reason why a small business owner in a rural town can have a professional
online store in a single afternoon.
📌 EXAMPLE: Who uses Shopify?
Small seller: A person who makes handmade soap at home sets up a Shopify store in 2 hours.
Orders come in. Payments are handled. Shipping labels are printed automatically.
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E-COMMERCE REPORT SCRIPT | BASED ON SOURCED ACADEMIC RESEARCH | APRIL 2026
Medium brand: A local clothing brand uses Shopify to sell to customers worldwide.
Their inventory, orders, and payments are managed from one dashboard.
Big business: Major brands like Heinz, Kylie Cosmetics, and Red Bull use Shopify
for parts of their online operations.
→ Shopify essentially said: ‘You don’t need to be Amazon to sell like Amazon.’
The COVID-19 Surge: Five Years of Growth in One Year
▶ NARRATION
Then came 2020. COVID-19 locked down the world. Stores closed. People stayed home. And
e-commerce exploded.
According to IBM’s U.S. Retail Index, the pandemic accelerated the shift from physical stores to
online shopping by approximately FIVE YEARS. In one year, e-commerce grew more than it
had in the previous five.
📈 During COVID-19, global e-commerce transactions soared to $29.267 TRILLION — including $25.5
trillion in B2B and $3.85 trillion in B2C sales. (Source: The Fulfillment Lab)
📌 EXAMPLE: What changed during COVID
Before COVID (2019):
• Most people still bought groceries, clothes, and medicine in physical stores
• Online shopping was growing, but slowly
• Many older generations had never bought anything online
During COVID (2020):
• ALL non-essential stores closed overnight
• People HAD to order food, medicine, and essentials online
• Grandparents who had never used a smartphone learned to order groceries online
• New delivery services exploded: GrabFood, Lalamove, DoorDash
After COVID (2021 onwards):
• The habits STUCK. People discovered how convenient online shopping was.
• E-commerce never went back to pre-COVID levels
• Physical stores had to create online counterparts or lose customers
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E-COMMERCE REPORT SCRIPT | BASED ON SOURCED ACADEMIC RESEARCH | APRIL 2026
PART 2 OF 2
How E-Commerce Works
What actually happens when you click ‘Buy Now’ — explained simply
Chapter 6: The Big Picture — What Happens When You Buy Online
▶ NARRATION
Let’s say you’re on your phone and you decide to buy a pair of headphones from an online
store. You add them to your cart, tap ‘Checkout’, type in your card number, and press ‘Pay’.
The whole thing takes about 10 seconds on your end. But in those 10 seconds, an invisible
chain of events happens — involving your bank, the store’s bank, international card networks,
and security systems checking for fraud.
Let’s walk through the whole process, step by step, using our headphone purchase as the
example.
⚡ The entire payment process — from the moment you press ‘Pay’ to the moment the store gets the
OK — takes fewer than 3 seconds. (Source: Wikipedia / Payment Gateway)
The Three Key Players You Never See
▶ NARRATION
Before we go step by step, you need to know about three invisible characters in every online
transaction. They are: the Payment Gateway, the Payment Processor, and the Merchant
Account.
PLAYER WHAT IT DOES (PLAIN ENGLISH) REAL-WORLD ANALOGY
Payment Collects your card details from the Like a secure mail pouch that only
Gateway website, locks them with encryption, the right recipient can open.
and passes them securely to the
processor.
Payment Receives the data, contacts your Like a security guard checking your
Processor bank to check if you have funds, and ID and wallet before letting you
either approves or declines the through.
payment.
Merchant A special bank account belonging to Like a reception desk that holds
Account the online store where your payment packages until the manager picks
is held temporarily before being them up.
moved to the store’s main account.
Chapter 7: The 5 Steps of Every Online Transaction
▶ NARRATION
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E-COMMERCE REPORT SCRIPT | BASED ON SOURCED ACADEMIC RESEARCH | APRIL 2026
Let’s go back to our headphone purchase. We’re going to follow the money from your phone
screen all the way to the store’s bank account — step by step.
You Press ‘Pay’ — The Order Is Placed
1 You confirm your headphone purchase on the store’s website. The store’s system records
your order and sends your payment information to the payment gateway.
Your Card Details Are Encrypted
Before your card number travels anywhere on the internet, it is scrambled using SSL/TLS
2 encryption. Think of it like putting your details in a locked box that only the right key can open.
Even if someone intercepts it, they see only gibberish.
The Gateway Passes It to the Processor
The payment gateway securely hands the encrypted data to the payment processor. The
3 processor is the company that actually handles the money movement — like Stripe, Adyen, or
PayPal.
Your Bank Is Asked: ‘Is This OK?’
The processor contacts Visa or Mastercard, who contacts YOUR bank. Your bank checks: Do
4 you have enough money? Is this a suspicious transaction? Is the card reported stolen? This all
happens in about 1 second. Your bank sends back a YES or NO.
Result: Approved or Declined
If YES: You see ‘Payment Successful!’. The store gets the green light to ship your
5 headphones. The money moves from your bank → processor → merchant account → store’s
bank account over the next 1–2 days. If NO: You see ‘Payment Declined’ and try again.
📌 EXAMPLE: Following ₱2,000 from your phone to the store (Full Journey)
YOU tap Pay on your phone. ₱2,000 is what you’re spending on headphones.
SECOND 1: Your card details are encrypted and sent to the Payment Gateway (e.g., PayMongo,
Stripe).
SECOND 1-2: The Gateway passes it to the Payment Processor.
SECOND 2: The Processor contacts Visa/Mastercard.
SECOND 2-3: Visa/Mastercard contacts YOUR BANK (e.g., BPI, BDO, GCash).
SECOND 3: Your bank says: ‘YES, this person has the funds and the card is valid.’
SECOND 3: You see: ‘Payment Successful! Order Confirmed.’
DAY 1-2: The ₱2,000 moves from your bank to the store’s Merchant Account.
DAY 2-3: The store transfers it from the Merchant Account to their main business bank.
Total time for YOU: about 3 seconds.
Total time for the money to fully arrive: 1-2 business days.
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E-COMMERCE REPORT SCRIPT | BASED ON SOURCED ACADEMIC RESEARCH | APRIL 2026
Chapter 8: How Your Money Is Kept Safe Online
▶ NARRATION
One of the biggest fears people have about online shopping is: ‘What if someone steals my
card number?’ This is a very fair concern. And the answer is: there are multiple layers of
protection working 24/7 to keep your money safe.
Let’s look at the three most important ones: Encryption, Tokenization, and PCI DSS
Compliance.
Security Layer 1: Encryption (The Locked Box)
▶ NARRATION
Every time you type your card number into a website, that number is immediately scrambled
using a technology called SSL or TLS encryption.
📌 EXAMPLE: Encryption: How it works with a simple analogy
NORMAL (unencrypted) — DANGEROUS:
Your card number is: 4111 1111 1111 1111
It travels through the internet exactly like that. Anyone spying on the connection can read it.
ENCRYPTED — SAFE:
Your card number becomes: xK92#mPq$T@8!Lw47*Nz&R3
It travels through the internet as scrambled nonsense.
Even if a hacker intercepts it, they see only gibberish.
Only the authorized payment processor has the ‘key’ to unscramble it.
This is why you see the padlock icon in your browser’s address bar.
That padlock = SSL encryption is active = your data is protected.
🔐 SSL encryption was invented by Netscape in 1994 — the same year as the first secure online
purchase. Today, its successor TLS is used on virtually every website that handles payments.
Security Layer 2: Tokenization (The Fake Card Number)
▶ NARRATION
Here’s a clever trick that online stores use. When you save your card for future purchases, the
store does NOT actually save your real card number. Instead, it saves a ‘token’ — a random
string of letters and numbers that represents your card, but is useless to anyone who steals it.
📌 EXAMPLE: Tokenization in everyday life
SITUATION: You save your card on an online shopping app for ‘one-click checkout.’
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What you THINK the app saves: 4111-1111-1111-1111 (your real card number)
What the app ACTUALLY saves: a83f-2c19-77bd-e40a (a random token that means nothing to
anyone)
If a hacker breaks into the app’s database:
• They find: a83f-2c19-77bd-e40a
• They CANNOT use this to buy anything. It’s worthless to them.
• Your real card number was NEVER stored on the app’s servers.
Example: When you use Apple Pay or Google Pay, your real card number is NEVER
sent to the store. Only a one-time token is used for each transaction.
Security Layer 3: PCI DSS — The Rules Every Store Must Follow
▶ NARRATION
PCI DSS stands for Payment Card Industry Data Security Standard. It sounds complicated, but
it’s basically a rulebook that every business handling card payments must follow. Think of it like
food safety laws for restaurants — except for online payments.
PCI DSS RULE IN PLAIN ENGLISH
Use and maintain a firewall configuration Have a digital wall that blocks hackers from
entering the system
Do not use default passwords Don’t leave the shop’s system unlocked with
the factory password
Protect stored cardholder data If you save any card data, it must be encrypted
and locked
Encrypt transmission of cardholder data Card info must be scrambled when sent over
the internet
Use and regularly update anti-virus software Keep the store’s computer systems protected
from viruses
Restrict access to cardholder data by business Only the people who absolutely need card data
need can see it
Regularly test security systems and processes The store must check for weaknesses and fix
them regularly
⚠️ Any business — big or small — that accepts card payments MUST follow PCI DSS rules. If they
don’t and a breach happens, they face heavy fines and can lose the ability to accept card payments
entirely.
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💸 The average cost of a data breach in 2024 is $4.88 MILLION. This is why security is not optional for
any online store. (Source: IBM Cost of a Data Breach Report 2024, via Airwallex)
Fraud: What Criminals Try to Do and How Stores Stop Them
▶ NARRATION
Of course, not everyone plays by the rules. Here are the most common types of fraud in e-
commerce, and how modern systems catch them.
📌 EXAMPLE: Common e-commerce fraud types and how they’re caught
FRAUD TYPE 1: Stolen Card Numbers
What criminals do: They steal card numbers (from data breaches elsewhere) and try to
buy things online before the owner notices.
How it’s caught: AI systems flag unusual behavior — e.g., a card used in Manila suddenly
making purchases in London 5 minutes later.
FRAUD TYPE 2: Credential Stuffing
What criminals do: They take leaked usernames and passwords from other websites and try
them on shopping sites. Many people reuse the same password.
How it’s caught: Two-factor authentication (OTP sent to your phone). Even if they have
your password, they can’t get the code.
FRAUD TYPE 3: Chargeback Fraud (‘Friendly Fraud’)
What criminals do: Someone buys a product, receives it, then tells their bank it was
unauthorized to get a refund — while keeping the item.
How it’s caught: Delivery confirmation, purchase history tracking, and fraud patterns
flagged by machine learning models.
Chapter 9: Three Types of Payment Gateways (For Store Owners)
▶ NARRATION
If you ever set up your own online store, you’ll need to choose a payment gateway. There are
three main types. Here’s what they mean in plain language.
TYPE WHAT HAPPENS BEST FOR EXAMPLES
Hosted Gateway Customer is sent to Beginners, small stores PayPal, Paymaya
PayPal’s website to pay, with no technical team. Checkout
then returned to the
store.
Self-Hosted The payment form is ON Mid-size stores wanting Shopify Payments,
Gateway your website. Customer a smooth experience. PayMongo
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never leaves your store.
API Gateway Developers build a Large businesses with Stripe API, Braintree,
totally custom checkout development teams. Adyen
using code and APIs.
🛒 Research shows 70% of customers abandon their cart if the checkout process is too complicated.
Choosing the right gateway directly affects how much money a store makes. (Source: Baymard
Institute, via Airwallex)
Chapter 10: Key Takeaways — What to Remember
▶ NARRATION — CLOSING SUMMARY
Let’s wrap everything up. Here are the most important points from this report.
On the History of E-Commerce:
• E-commerce did not start with the internet. It began in the 1940s with telex machines and
evolved through EDI, ARPANET, and Aldrich’s 1979 invention.
• The first truly safe online purchase was a $12.48 Sting CD in 1994 — made possible by SSL
encryption.
• Amazon and eBay proved in 1995 that ordinary people would shop online if the experience
was easy and trustworthy.
• The dot-com crash of 2000 destroyed companies but built infrastructure. Every modern app
benefits from it.
• COVID-19 in 2020 accelerated 5 years of e-commerce growth into a single year.
• Today, global e-commerce generates over $29 trillion annually and 60% of sales happen on
mobile phones.
On How E-Commerce Works:
• Every online payment involves three invisible players: the Payment Gateway, the Payment
Processor, and the Merchant Account.
• The entire payment process — from pressing Pay to getting approval — takes under 3
seconds.
• Your card is protected by encryption (scrambling your data), tokenization (never saving your
real number), and PCI DSS rules (mandatory security standards for all businesses).
• There are 3 types of payment gateways: Hosted (customer leaves the site), Self-Hosted
(customer stays on site), and API (fully custom-built by developers).
• A complicated checkout costs businesses customers: 70% of shoppers abandon their cart
over a bad checkout experience.
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Sources & References
All information in this report script is based on the following sourced references:
HISTORY OF E-COMMERCE (PART 1)
[1] University of Texas Permian Basin Online. The Evolution of E-Commerce. [Link]
[2] Roos, D. (2008). The History of E-Commerce — HowStuffWorks. [Link]
[Link]
[3] Fleximize. History of eCommerce: From ARPANET to Google Algorithms.
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[4] IWD Agency (2025). The History of eCommerce: How Did It All Begin?.
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[5] ePlaybooks (2025). The History of eCommerce: How It All Began. [Link]
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[6] Tian & Stewart (2006). History of E-Commerce — ResearchGate / Encyclopedia of E-Commerce.
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[7] Library of Congress Research Guides. E-Commerce: A Research Guide — History. [Link]
commerce/history
[8] Miva Blog (2022). The History of Ecommerce: How Did It All Begin?. [Link]
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[9] The Fulfillment Lab (2021). The History of Ecommerce: Timeline & What the Future Holds.
[Link]
[10] TextMaster (2025). The History and Development of E-Commerce Worldwide.
[Link]
HOW E-COMMERCE WORKS (PART 2)
[11] Stripe (2025). Ecommerce Payments 101: A Guide for Businesses.
[Link]
[12] TatvaSoft (2024). E-Commerce Payment Processing: Step-by-Step Guide.
[Link]
[13] Wikipedia (2026). Payment Gateway. [Link]
[14] NFLo Tech (2026). E-Commerce Platform Security: Protecting Online Store & Customer Data.
[Link]
[15] Airwallex US (2025). What Is an Ecommerce Payment Gateway? [Cites IBM Cost of a Data Breach Report
2024 & Baymard Institute]. [Link]
[16] Motus Financial (2025). How Secure Is E-Commerce Payment Processing?. [Link]
industry-news/how-secure-is-e-commerce-payment-processing/
[17] ABCO Systems (2023). The History of eCommerce. [Link]
End of Report Script · E-Commerce: History & How It Works · April 2026 · 17 References
Page 16 | E-Commerce Report Script | History & How It Works