Boston Computer Exchange Pioneered E-Commerce in 1983 with 300 Bits per Second

The early days of online buying and selling showed the potential for transformative technology, even when it seemed slow and impractical.

Published on Feb. 26, 2026

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In 1983, Alex Randall and his wife started the Boston Computer Exchange, one of the world's first e-commerce marketplaces, using a 300-bits-per-second modem to connect buyers and sellers of used computers. Despite the slow speeds, the business took off, leading to sales as far as Chile and laying the foundation for the multi-trillion-dollar e-commerce industry we have today.

Why it matters

The Boston Computer Exchange story highlights how transformative technologies can seem impractical or even ridiculous in their early stages, only to become ubiquitous and essential. This pattern is playing out again today with emerging technologies like AI and quantum computing, where investors need to look beyond the hype to identify companies with the financial strength and earnings power to turn innovation into long-term gains.

The details

Randall and his wife started the Boston Computer Exchange to help people buy and sell used computers, initially using a card-and-pencil system to match buyers and sellers. After computerizing their records and connecting to an electronic bulletin board via a 300-bits-per-second modem, the business took off, leading to a sale to a customer in Chile. This was a bold and novel idea at the time, when most businesses still relied on traditional in-person sales and physical stores.

  • In 1981, Alex Randall bought an IBM personal computer with 16 kilobytes of memory and two floppy-disk drives.
  • In 1983, Randall and his wife started the Boston Computer Exchange out of a small office.
  • On March 4, 1983, the Boston Computer Exchange began using a 300-bits-per-second modem to connect to an electronic bulletin board, leading to their first sale to a customer in Chile.

The players

Alex Randall

A PhD in systems theory who started the Boston Computer Exchange to help people buy and sell used computers.

Boston Computer Exchange

One of the world's first e-commerce marketplaces, founded in 1983 to facilitate the buying and selling of used computers.

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What they’re saying

“The prices were all over the place, and the descriptions didn't make any sense.”

— Alex Randall

What’s next

As emerging technologies like AI and quantum computing continue to evolve, investors will need to carefully evaluate which companies have the financial strength and earnings power to turn innovation into long-term gains, rather than chasing the latest headlines.

The takeaway

The Boston Computer Exchange story shows how transformative technologies can seem impractical or even ridiculous in their early stages, only to become essential parts of our daily lives. This pattern is playing out again today, underscoring the importance of identifying companies with the durability to weather the hype cycle and turn innovation into sustainable success.