Difference between E-commerce vs Traditional commerce
E-commerce is the digital exchange process of goods and services, where the payment for the goods and services happens electronically. E-Commerce is a form of online shopping market where customers can buy goods and services easily from their homes, including a few discounts, and the goods will be delivered to their doorstep. Traditional Commerce is the process of exchanging goods and services in the form of money directly. Traditional Commerce involves face-to-face and in-person dealing with all the parties to exchange goods and services with predefined prices.
E-commerce
E-commerce can save time and money by eliminating the need to travel and simplifying the process of selecting goods. Customers can make payments through various digital modes such as credit cards, debit cards, digital wallets, or net banking. E-commerce allows consumers to purchase goods anytime without hassle during their free time. E-Commerce provides greater benefits in buying goods and services easily.
Traditional commerce
Traditional Commerce began during the barter system, introduced millions of years ago. The barter system defines exchanging goods with other goods instead of money, where money was unavailable during those days. This is where Traditional Commerce began and has continued till today, exchanging money rather than only goods. Nowadays, Traditional Commerce lost its popularity and is reduced due to the introduction of E-commerce in the early 20th century.
Head To Head Comparison Between E-commerce vs Traditional Commerce (Infographics)
Below is the top 9 difference between E-commerce and Traditional commerce
Key Differences Between E-commerce vs Traditional Commerce
Both E-commerce vs Traditional commerce are popular choices in the market; let us discuss some of the major Difference Between E-commerce and Traditional commerce:
- E-Commerce is completely an in digital and online mode where the communication is through electronic form completely whereas Traditional Commerce is completely offline and through in person or face to face.
- It is reachable worldwide and has more connectivity, whereas Traditional Commerce is limited to a particular geographical area, especially smaller.
- E-Commerce information of exchange takes place in different forms, either through digital ads or emails. In contrast, the exchange of information in Traditional Commerce happens through hoardings or pamphlets distribution or any physical mode of exchange.
- E-Commerce can have one-to-one marketing, whereas Traditional Commerce can have only one-way marketing.
- E-Commerce can have several payment modes, such as online transactions or digital wallets or cash on delivery, whereas Traditional Commerce can have only cash payment in person.
- The delivery of goods in E-commerce is either the on the same day or any other day depending on the availability of logistics and several other restrictions depending on the customers’ location. In contrast, in traditional commerce, the delivery of goods is instant.
- E-commerce provides many discounts at lower rates, whereas in Traditional commerce, there will be no or fewer discounts and no other options except to approach different sellers, which takes time.
- It provides good customer services in different forms, such as chat options or direct calls with customer care executives, whereas Traditional commerce does not provide any such customer support.
- E-Commerce accepts the return of the products if not interested or not liked by the customer within 7 – 15 days, depending on the seller. Traditional commerce does not provide such a return policy until there is damage to the product.
- E-Commerce provides many products in scope and a wide variety of products irrespective of brands and types of products. In contrast, Traditional commerce has a limited number of products with a particular seller as space is limited.
E-commerce vs Traditional commerce Comparison Table
Let’s look at the top Comparison between E-commerce vs Traditional commerce –
| The basis of comparison Between E-commerce vs Traditional commerce |
E-commerce |
Traditional commerce |
| Definition | E-Commerce is a form of online shopping where users can buy goods and services from their electronic devices such as a laptop, mobile, or tablet. | Traditional-Commerce is a traditional approach to buying goods and services in person, which involves face-to-face dealing. |
| Usage | It is used to save valuable time and money. | It is ancient and still in use where the digital network is unreachable. |
| Process | It is easier to use and operate if the customer has basic digital gadget knowledge. | It can be followed by any person irrespective of education or knowledge. |
| Mode | It is in electronic or digital mode only | It can be in any form, which is non-electronic or manual form. |
| Time | It is available round the clock | It is available for a limited time as prescribed by the law and based on the type of business. |
| Purchase | Inspecting a product before purchasing is not possible in this type. | Inspecting a product before purchasing is possible in a traditional commerce business model. |
| Involvement | It involves only digital gadget engagement to place the order | It involves face-to-face involvement of both buyer and seller |
| Business | More business can be done easily without any hassles | It is difficult to perform more business in this model |
| Maintenance | Easier to maintain this as the only warehouse is enough to store the goods. | It is cost-effective as display and showcase of the products are required to attract customers. |
Conclusion – E-commerce vs Traditional commerce
E-commerce is the trending form of business carried out nowadays by most business traders or sellers for retail and wholesale. Traditional commerce is still popular where there is no reachability for delivering goods and services to faraway places from the urban areas. Also, where few people cannot attain digital gadgets come under uneducated and traditional commerce is a popular form of business.
E-commerce has reached most of the target audience as digital devices can be available at the lowest prices and many competitive sellers. This has also become easier, and day by day, the connectivity to the digital world is also increasing due to the efforts being made by the e-commerce industry. Both E-commerce vs Traditional commerce models is still popular based on the availability, requirement, and emergence of the requirement to the customers.
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