Put two men on an island, and they would do business. Robinson Crusoe’s island too became a market in the sequel to the widely read novel. When the internet arose as a communication tool there were not many who saw its business potential. It was only the dotcom boom of the last years of the millennium that ecommerce took off. The reason behind its popularity was its wide acceptability among consumers. There were many doubts regarding online commerce. The systems were not in place.
Money transfer was problematic and there were threats of fraud. Human psychology, which favors physical testing of products before purchase, went against the online mode of purchase through click of a mouse-button. People did not get immediate delivery, and such like. However, ecommerce became a success as many of the technological barriers were overcome, and some of the psychological hurdles attended.
The tremendous success of such stores as Amazon.com or the auction site eBay changed the parameters of online purchasing behavior. People were eager to buy products online because they could see more of them, get more information and could conduct research and in general get a better deal. The online stores could dispense with many inventory related expenses, thus providing a discount to final customers. Business to Consumer Portals, where businesses sell directly to consumers, became a huge rage which allowed consumers to buy products from across the world. On the internet, it is the presence of B2C portals that has made the phenomenal success of ecommerce possible.