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Traditional Commerce
Traditional commerce refers to business transactions or information exchange, as well as buying and selling products/services from person to person, without the use of the internet, which is an older type of business approach. People nowadays do not favour this business method because it is time-consuming and requires physical exertion. An actual market or bazaar is an example.
E-commerce
E-commerce is a newer idea of the business style that refers to commercial transactions or information exchange and buying and selling products/services electronically via the internet. People nowadays appreciate this since it saves time and eliminates the need for a physical location to conduct business. Instead, everything can be done using laptops, Smartphones, and the internet. Online shopping platforms are an example.
Meaning
Traditional commerce relates to business transactions or information exchange and the buying and selling of goods and services from one person to another, without the need for the internet, which is an older manner of doing business.
The buying and selling of goods and services through the Internet are known as e-commerce. Computers, tablets, cellphones, and other smart devices are used to conduct the survey. Today, almost everything can be acquired via e-commerce. Moreover, it can be used in place of physical storefronts, while some companies choose to keep both.
Characteristics
Electronic commerce or internet commerce are other terms for e-commerce. These services are delivered online over the internet network. E-commerce also includes the exchange of money, funds, and data. With conventional commerce, buyers have the choice to come in directly to acquire your items and services. Traditional commerce’s most essential features are delivering more customized service and allowing customers to engage all five senses before purchasing.
Advantages
The major benefits are the low costs, flexibility, speed, and large amounts of data. Consumers can try out the product before they buy it. Because there are no hackers or scammers in the real world, the owner cannot lose money. People who do not have access to the internet can shop in stores.
Customers frequently travel considerable distances to visit their chosen physical store. With e-commerce, they may virtually visit the same store with just a few mouse clicks. An e-commerce merchant can get a lot of information about its customers by using the information that a client supplies in the registration form and installing cookies on the customer’s computer.
It can then be utilized to deliver important information. For example, if you search for a product on Amazon.com, you will be shown lists of other things that are comparable. Amazon.com may also send you emails about connected products. One of the main reasons to start an e-commerce website is that it is much less expensive than opening a physical store. You can utilize the best marketing approach involving organic search, pay-per-click, or social media traffic to lower the pricing for your e-commerce business.
In addition, compared to a physical store, the number of people and property required to get the business up and going is significantly lower. People migrate from traditional trade to e-commerce mostly to save time and money on travel. A customer must visit a physical retail store to purchase an item, but an e-commerce website or app allows him to do it with a few clicks while sitting on the sofa. With the introduction of e-commerce, customers have been able to save even more time by purchasing things online.
Traditional Commerce and E-commerce: Difference
Traditional commerce is fully offline and conducted in person or face to face, whereas E-Commerce is completely digital and electronic, with all communication conducted through electronic means
Traditional commerce is limited to a specific geographical location, especially smaller, and has less connectivity, but E-Commerce is accessible worldwide and has more interconnectivity
Information exchange in E-Commerce takes several forms, such as digital ads or emails
In contrast, information exchange in Traditional Commerce takes the shape of hoardings, pamphlet distribution, or any other physical medium of interaction
Traditional commerce can only have one-way marketing, while E-Commerce can have one-way marketing
Traditional commerce can only accept cash payments in person, whereas E-Commerce can accept online transactions, e-wallets, or cash on delivery
In E-commerce, things are delivered on the same day or any other day, depending on logistics availability and other factors such as the consumers’ location
Still, in traditional commerce, goods are delivered quickly
Traditional commerce offers no or few discounts and no other options except to approach different sellers, which takes time
On the other hand, E-commerce offers many discounts and at lower rates. In contrast, traditional commerce offers no or few discounts and no other options except to approach different sellers, which takes time
E-commerce offers excellent customer service in several forms, such as a chat option or a direct call with a customer service representative, whereas traditional commerce does not
E-Commerce allows customers to return things within 7 to 15 days if they are not interested or like them, depending on the seller
However, traditional commerce does not allow returns unless the object is defective
Traditional commerce has a restricted number of products with a particular seller because of space constraints
However, E-Commerce has many products in breadth and a wide variety of products regardless of brands or types of products
Conclusion
E-commerce is the most popular type of business nowadays, with most business traders or sellers using it for retail and wholesale purposes. However, traditional trade is still popular in areas where it is difficult to distribute goods and services to locations outside of urban areas. Where a small number of individuals cannot obtain digital devices, they are classified as ignorant and traditional commerce is a common kind of business in this circumstance.
