Understanding the Difference between Traditional Commerce and E-Commerce

Understanding the Difference between Traditional Commerce and E-Commerce

E-commerce is the procedure of exchanging goods and services in the shape of digital mode where the payment to the goods and services happens in electronic form. ECommerce is a form on the online shopping market where clients can buy goods and services from their home easily including a few discounts and the goods will be delivered at the doorstep. Traditional Commerce is the procedure of exchanging goods and services in the form of money right away. Traditional Commerce involves in person and face to face dealing with all the parties to perform the exchange of goods and services with predefined costs.

The below-mentioned points are noteworthy so far as the difference between traditional commerce and ecommerce is concerned: E-Commerce refers to carrying out commercial transactions or exchange of information, electronically on the internet. In traditional commerce, the transactions are processed manually while, in the case of e-commerce, there is automatic processing of transactions.

One of the major challenges of e-commerce is that the customers cannot physically inspect the goods prior to purchase, however, if customers do not like the goods after delivery they can return it within the fixed time.

Conversely, in traditional commerce physical examination of goods is possible.

In traditional commerce, the exchange of goods and services, for money can take place, only during working hours. On the other hand, in e-commerce, the selling and buying of goods can occur anytime.

The scope of business in traditional commerce is restricted to a particular area, i.e. the reach of business is limited to the close by places where it functions.

On the contrary, the business has worldwide reach in case of e-commerce, because of its ease of access.

In traditional commerce, the communication between buyers and sellers is direct, i.e. face to face. As against this, there is indirect customer interaction, in the case of ecommerce, as it may be possible that the customer is miles away from where they place an order for the purchase of goods.

As there is no fixed platform for information exchange in traditional commerce, the business has to depend on the intermediaries for information fully. Unlike e-Commerce, where there is a universal platform for information exchange, i.e. electronic communication channel, which lessen the reliance on persons for information.

In traditional commerce, the business relationship is vertical or linear, while in the case of e-commerce there is directness in command leading to a horizontal business relationship.

Traditional commerce is concerned with the supply side. In contrast, the resource spotlight of e-commerce is the demand side.

In traditional commerce, due to standardization, there is mass/one way marketing. However, customization exists in e-commerce leading to one to one marketing.

The delivery of goods is immediate in traditional commerce but in the case of e-commerce, the goods are delivered at the customer’s place, after some time, typically within a week.

Payment for transactions can be done by paying cheque, cash, or via credit card. On the other hand, payment in e-commerce transactions can be done through online payment modes like credit card, fund transfer, etc.

Haroon Qureshi created a movement in generating wealth. His mission has been to develop the next generation of e commerce experts who become the pioneers of new global product launches. Before even hitting 27 Haroon Qureshi had built a 7-figure E Commerce business empire.

Source Link: https://haroonqureshitheecomexperts.wordpres s.com/2021/08/27/understanding-the-differenc e-between-traditional-commerce-and-e-commerc e / Website: https://www.theecomexperts.com/ Add: United Kingdom