Question

3 paragraphs on Traditional Business versus e-Commerce

Answer 1

Cost effective

If we compare both the models then E-commerce is much cost effective. Middlemen cost is eliminated in the e-commerce because there is a direct link between the business and the customer. The aggregate overhead cost required to run e-business is comparatively less, compared to traditional business.

Time sparing

It takes a great deal of time to complete a transaction in traditional commerce. E-commerce saves a considerable measure of valuable time for both the consumers and business. An item can be ordered and the transaction can be completed in few minutes through internet.

Geographical accessibility

In traditional commerce, it is quite easy to expand the size of the target market from regional to national level..

By facilitating a website, by putting advertisements on the internet and fulfilling certain legal standards, a business can penetrate into worldwide market. It is quite easy to draw in customers from worldwide markets at a minor cost.

Benefit

E-commerce helps to increase the sales of the association. It helps the association to enjoy greater benefits by increasing sales, cutting cost and streamlining operating processes.

Because the various cost such as middlemen commission, inventory cost, overhead. Limited sales area drag down the benefit of the association in traditional commerce.