CA Foundation Exam June 2023 » Difference Between » Traditional Commerce and E-Commerce

Traditional Commerce and E-Commerce

This article gives a clear idea about the difference between traditional and e-commerce, including their characteristics, and advantages.

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 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.


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.


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.


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, you will be shown lists of other things that are comparable. 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

  1. 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

  2. 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

  3. Information exchange in E-Commerce takes several forms, such as digital ads or emails

  4. In contrast, information exchange in Traditional Commerce takes the shape of hoardings, pamphlet distribution, or any other physical medium of interaction

  5. Traditional commerce can only have one-way marketing, while E-Commerce can have one-way marketing

  6. Traditional commerce can only accept cash payments in person, whereas E-Commerce can accept online transactions, e-wallets, or cash on delivery

  7. 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

  8. Still, in traditional commerce, goods are delivered quickly

  9. Traditional commerce offers no or few discounts and no other options except to approach different sellers, which takes time

  10. 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

  11. 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

  12. E-Commerce allows customers to return things within 7 to 15 days if they are not interested or like them, depending on the seller

  13. However, traditional commerce does not allow returns unless the object is defective

  14. Traditional commerce has a restricted number of products with a particular seller because of space constraints

  15. However, E-Commerce has many products in breadth and a wide variety of products regardless of brands or types of products


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.


Frequently asked questions

Get answers to the most common queries related to the CA Examination Preparation.

What is traditional commerce's strategy?

Answer: Traditional commerce refers to the face-to-face practice of purchasing and selling things in a physi...Read full

Which of the following is a factor in traditional trade?

Answer: Any business transaction that takes place face-to-face in a real store area is considered traditiona...Read full

Write one advantage of traditional commerce and e-commerce

Answer: The one advantage was flexibility.