Web retailing began to flourish the following year, when Netscape (now a division of Time Warner) came out with a version of its Web browser that incorporated the Secure Sockets Layer (SSL) security protocol, Kohn said. SSL creates a connection between a desktop computer, or client, and a server, over which data can be sent securely. The most recognisable sign of SSL at work are Web addresses that begin with "https:" rather than the more familiar "http:" designation.
Microsoft also adopted the SSL protocol as the encryption standard for its Internet Explorer Web browser, further cementing it as a common method for protecting the transmission of confidential information on the Web. That same year, a little Seattle company called Amazon.com set up a book shop online.
Security still a worry
While 10 years of fine-tuning the technology have made e-commerce easier, data security remains a concern for online shoppers and merchants. Though SSL is nearly impossible to break, hackers have found other ways to attack, using computer viruses, "phishing" and other tricks.
Phishing is a scam involving bogus emails that appear to come from legitimate businesses, such as Citibank, eBay or PayPal. The emails often say the company has lost or must update the recipient's accounts. The user is prompted to follow a link to a phoney site and enter passwords, credit card numbers and other personal information.
At least 30 million Americans have been the target of a phishing attack, and nearly two million of them have been hooked, divulging credit card numbers and other information, according a Gartner survey. The technology research firm recently warned that phishing, which cost US credit card companies and banks more than $1.2bn last year, may seriously sap consumer enthusiasm for online shopping if nothing is done to combat it.
Another threat to e-commerce is the proliferation of computer viruses that override security features in popular Web servers and browsers, particularly Microsoft's Internet Explorer (IE). One such virus that infected computers in June redirected visitors from certain Web sites to sites controlled by hackers allegedly in Russia. The virus, dubbed JS.Scob.Trojan, also planted a remote-access program onto infected computers to record keystrokes and capture login information.
Computer security experts believe the attack affected a relatively small number of Web sites but was that largest, most effective assault of its type to date. The attack prompted some people to switch from using Explorer to alternatives, such as Mozilla and Firefox from the Mozilla Foundation and Opera from Opera Software.
Despite the threats, most people are more comfortable than ever with shopping online, said Darin Sennett, director of design and technology, at Powell's City of Books. The Portland, Oregon, book store has been taking orders online for nearly 10 years and has been largely unaffected by such attacks, he said.
"That was sort of the James Bond of e-commerce high-jacking," Sennett said of the Russian virus that spread in June. "I don't think there's an overwhelming concern about doing commerce online because of threats to security."
