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What is the difference between E-commerce and traditional commerce?
Traditional commerce is part of a business that has all activities that facilitate exchange. Trade and auxiliaries of trade are kinds of traditional commerce whereas e-commerce refers to the exchange of goods & services, funds/information between customer and business by means of an electronic network
The major differences between Electronic commerce (E-commerce) and traditional commerce are as follows −
E-commerce | Traditional commerce |
---|---|
It is cost-effective. | It is less cost-effective than E-commerce. |
No role of middlemen. | Middlemen have a role to play in traditional commerce. |
Less overhead cost. | High overhead cost than E-commerce |
Takes less time. | Takes more time. |
Better connectivity. | No better connectivity. |
Size of business is easily expandable. | Size of business is not easily expandable. |
New product is easily introduced. | Introduction of new products is not easy. |
Immediate analysis of customer feedback can be done. | Takes more time in analysing the customer feedback. |
Increase profits by cost cutting and streamlining operating expenses. No physical inspection. | Physical inspection. |
24*7 accessibility. | Limited time of accessibility. |
Not suitable for perishable and high-value products/items. | Suitable for perishable and high products/items. |
High qualified staff is required. | High qualified staff is not required. |
Screen to face customer interaction. | Face-to-face customer interaction. |
Automated process of business. | Manual processing of business. |
End-to-end business relationship. | Vertical/linear business relationship. |
Chances of fraud is very high. | Chances of fraud is less compared to E-commerce. |
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