Difference between Traditional Commerce and E-Commerce.
TRADITIONAL COMMERCE VS. E-COMMERCE
Due to the exponential growth of internet, nature and structure of competition in traditional way of doing business and e-commerce has been changed dramatically. In traditional way of doing commerce, most businesses had to compete within a single industry and often within a specific limited geographical area, but the internet is breaking all these boundaries. Example: Amazon.com. The company began as an online bookstore but quickly expanded into new products and markets such as music, videos, home improvement supplies.
The traditional Commerce is based on the following rules:-
1. It needs to hire sales executive, sales managers, accountants, and other staffs.
2. Operates at business hours within a certain period of time.
3. Requires location renting/purchasing, staff employment, advertising, inventory, shipping and handling all sums up the high-cost equation which makes many people negate. from starting a business entirely.
4. No sharing of the information with the competitors.
5. The basis of a traditional business depends on the frequency of new and old customers buying from them to keep the business running.
In today’s fast-paced world, in order to stay in contention and thrive in the business world, it is very important to break -through these conventional rules and adapt the information technology ways of doing business.
E-Commerce has important phases explained below:
1. It is related with advertising of the products electronically and enabling the customers to browse through the available offers.
2. It involves an agreement between the involved parties to continue with the succeeding phases.
3. Order is made for the goods after an agreement is concluded.
4. E-payment systems on the internet are used for receiving payments.
5. Goods are delivered to the customers. If it is a tangible product, it is sent by transportation. In case of tangible products, electronic delivery is made and security issues apply to it.
The main points of difference between traditional commerce and E-Commerce are as follows:- In E-commerce:
1. Everything is digital.
2. Less overhead costs.
3. Elimination of the middleman(disintermediation)
4. Financial transactions on the internet can actually be more secure than in traditional retail environments.
5. Speed.
6. Empowerment.
7. Personalization.