Question

How E - commerce is different from traditional commerce? Describe four differences with example.

Answer 1

Traditional commerce refers to all activities that encourage the exchange of goods and services in some way or other. It can be manual or non-electronic in nature. Whereas in E- commerce, there are commercial transactions or exchange of information, and this is happenning electronically over internet.

Differences:

In traditional commerce the availability is restricted to a limited time, because the no. of hours your shop is opening is defined by law. But in E-commerce, the availability is 24*7*365.

The Customer Interaction in traditional commerce is F2F. Whereas in E-commerce, the customer interaction is screen to face. Example: Amazon or Walmart vs your local shops in the area.

In traditional commerce, inspection before purchase is possible. But in E-commerce, the inspection before purchase is not possible.

In traditional commerce, you have a limited scope for business. But in E-commerce, your business can achieve global status. Example: Amazon or Walmart vs your local shops in the area.

In traditional commerce, the main focus is on the supply side. Whereas in E-commerce, the main focus is on the demand side.

The delivery of goods takes time in E-commerce. But in traditional commerce, the delivery is instant because you are buying the goods F2F. Example: Amazon or Walmart vs your local shops in the area.

In E-commerce, the layers of delivery are less, which increases the profit margin for the manufacturers, and enables better prices for customers. Whereas in traditional commerce, there are multiple layers from manufacturers to customers, which reduces the profit margins. Example: Amazon or Walmart vs your local shops in the area.