People in the 21st century are familiar with the words traditional commerce and e-Commerce. When you run a business in today’s uber-mobile world, having an e-Commerce set up in addition to your brick-and-mortar business is essential. Having both is a great way to reach the maximum number of customers and grow your business. However, in order to highlight the distinctions between the two, let’s shine the spotlight on each.
Traditional commerce refers to the trade that existed before the digital revolution. It was, in fact, the only kind of trade available at the time. It entails the actual transfer of goods or information from one person to another in return for money. This sort of commerce takes place in the absence of the internet, with all transactions taking place in person.
During the digital revolution, however, an entirely new and more efficient kind of business called electronic commerce, or e-Commerce as it is now often known, arose.
Instead of a physically present commercial marketplace where buyers and sellers must come to trade goods, this new notion of commerce draws on the same age-old commerce as before, but with a modern twist: the market is online. People, especially millennials who use the internet a lot, are rapidly turning to e-commerce since it is considerably less time consuming and has now become the easiest method of commerce.
Let’s look at the top 7 differences between traditional commerce and e-Commerce.
e-Commerce is a type of online shopping in which customers may purchase goods and services through their computers, tablets, and smartphones.
Traditional commerce is a method of purchasing products and services in person, involving face-to-face interaction.
In e-Commerce, if the consumer has some fundamental digital and internet understanding, it will be easy to use and run.
Traditional commerce may be followed by anybody, regardless of their educational or expertise level.
e-Commerce can only be used in electronic or digital mode.
Traditional commerce can take any form, including non-electronic or manual.
e-Commerce is available 24 hours a day, 7 days a week.
Traditional commerce is accessible for a period of time set by law and depends on the type of business.
In e-Commerce, it is not feasible to inspect a product in person before purchasing it.
In traditional trade, it is feasible to inspect goods before acquiring them.
In e-Commerce, more business can be done quickly and effortlessly.
In the traditional commerce model, it's tough to scale up business quickly.
In e-Commerce, it is simpler to maintain the inventory because only a warehouse is required to keep the items.
In traditional commerce, to attract clients, items must be shown and showcased physically.
Due to the lack of a regulator, one of the biggest problems of conventional trade is that it is difficult to establish and sustain standard procedures. As a result, various standards may be established for the same product in the same market. This leads buyers to be perplexed and distrustful. In the case of e-Commerce, this difficulty is overcome because there is a regulatory website where all of the items are listed for sale. There is a strong incentive to obey the guidelines since failure to do so might result in the product being removed from the online market.
e-Commerce will never offer the same level of personalization as traditional commerce. People conduct business directly in traditional commerce, which means that the relationship between the buyer and the seller is up close and personal. Long-term customer connections might result from this. However, with e-Commerce, this interaction does not occur, and the human aspect is thus eliminated.
Conventional and e-Commerce are fundamentally different in that traditional commerce focuses primarily on the supply side of the company, whereas e-Commerce focuses on the demand side. Sellers in conventional commerce anticipate market demands and create demand by selling more of their things. In the case of e-Commerce, the seller will know ahead of time what the market's need is and will be able to stock up on and offer the things that the market requires.
Money is transacted manually in traditional trade. In return for commodities, money is delivered in the form of paper or coins. However, in the case of e-Commerce, cashless transactions are the most popular. People can send money straight to the vendor using their bank accounts or e-wallets. The internet allows for a wide range of transactions that would not be possible otherwise.
Both conventional and e-Commerce have their own set of benefits and drawbacks. However, given the current state of affairs, there is a significant likelihood that e-Commerce will continue to dominate the industry.
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