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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 −
|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.
|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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