What is the difference between E-commerce and traditional commerce?

Finance ManagementBanking & FinanceGrowth & Empowerment

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-commerceTraditional 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.
raja
Updated on 18-May-2022 10:11:34

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