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Difference between E-commerce vs Traditional commerceE-commerce is the process of exchanging goods and services in the form of digital mode where the payment to the goods and services happens in electronic form. E-Commerce is a form on the online shopping market where customers can buy goods and services easily from their home including a few discounts and the goods will be delivered at the 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 perform the exchange of goods and services with predefined prices. E-commerceIn E-commerce most of the time and money can be saved in spending on traveling and selecting the goods. The payments can be made in any form of digital modes such as Credit Card, Debit Card, Digital Wallets or Net Banking. In E-Commerce, the goods can be bought round the clock without any hassles during our free time. E-Commerce provides greater benefits in buying goods and services easily. Traditional commerceTraditional Commerce began at the time of the barter system which was introduced in the early millions of years ago. The barter system defines the exchange of goods with other goods instead of money where money was not available during those days. This is where Traditional Commerce began and has been continuing till today in the form of exchanging money rather than with only goods. Nowadays Traditional Commerce lost its popularity and got reduced due to the E-commerce introduction 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 commerceBoth 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 vs Traditional commerce Comparison TableLet’s look at the top Comparison between E-commerce vs Traditional commerce –
Conclusion – E-commerce vs Traditional commerceE-commerce is the trending form of business being carried nowadays by most of the business traders or sellers for retail and wholesale as well. Traditional commerce is still popular where there is no reachability for the delivery of the goods and services to faraway places from the urban areas. Also where few people are not in a position to attain the digital gadgets come under uneducated and traditional commerce is a popular form of business in this case. E-commerce has reached most of the target audience now as the digital devices can be available at lowest prices and lot of competitive sellers, this has also become easier and day by day the connectivity to the digital world is also getting increased due to the efforts being done by the e-commerce industry. Both E-commerce vs Traditional commerce models are still popular based on the availability, requirement, and emergence of the requirement to the customers. Recommended ArticlesThis has a been a guide to the top difference between E-commerce vs Traditional commerce. Here we also discuss the E-commerce vs Traditional commerce key differences with infographics, and comparison table. You may also have a look at the following articles to learn more-
This post discusses the differences between traditional businesses and digital businesses. It also talks about the types of business models that come under these two forms of businesses. Managing a business is both challenging and interesting. It’s not like your 9-5 government job where one reaches the office at or before a particular time, does some mundane tasks, and then wraps up for the day at a fixed time. With business, everything takes a different turn. Inherent risks and the constant need to pacify customer requirements float in the business owners’ minds. A traditional business setup has a physical presence, and it serves people locally by providing services or products through brick-and-mortar stores. In case of a digital business setup, people sitting in any corner of the world can scroll through the web and avail the company's services and products. What is Traditional Business? What is Traditional Business?Organizations such as restaurants, agencies, and anything resembling an office-setup fall in this category. Traditional business-oriented organizations usually sell products or services through stores. A traditional business serves customers in exchange for monetary compensation. It works on CAPEX and OPEX. While such organizations focus on profit generation, a few of them—non-profit organizations—work for customers without expecting profits. Types Of Traditional Business ModelsVarious types of business models used in traditional business are: ManufacturerThe manufacturer business model utilizes raw materials to create products that are then sold in the market. This type of business model involves the assembly of pre-manufactured items. The products are either directly sold to the customers in what’s known as B2C model (business to customer), or to another business unit in the form of B2B model (business to business). Automobile manufacturers are an example of B2C model, and wholesalers follow the B2B model. DistributorA company in the distributor business model buys products directly from the manufacturer. The company then sells the procured products to consumers or retailers. RetailerA company following the retailer business model purchases products from the wholesaler/distributor. It then sells the inventory to the public. Brick-and-mortar stores fall in this category. FranchiseIn this setup, the company buys the franchise of a very successful brand and promotes the brand’s services/products to the general public. The franchise segment is a popular way to build awareness across geographies. What is Digital Business?Digital business is the modern form of business, a significant deviation from the established norm. This model leverages technology for value creation & addition, thereby giving an entirely different customer experience. The umbrella term includes both digital-only brands as well as traditional businesses that use modern-day innovations. Prominent examples of digital businesses are Uber, the cab-owning service which allows the user to book cabs online, Disney+Hotstar, and Netflix (video streaming service). Types Of Digital Business ModelsTypes of the business model used in digital business are: BasicSmall businesses fall in this category. With a small presence on digital platforms, such ventures rely on traditional marketing methods like direct mail and print advertising. A level where small businesses employ tools like websites with basic functionality; these sites don't have e-commerce or mobile rendering capabilities. Other factors like listing in online directories and third-party marketplaces play a major part here. AdvancedAdvanced websites with mobile app versions or e-commerce abilities are used by digital businesses in this category. The reliance on Social media engagement is quite significant. Video conferencing, SAAS apps, etc. are part of the toolkit. This model is the epitome of digital business. Such ventures have high social media visibility, have little or no physical presence (as in brick-and-mortar stores), and engage with customers extensively through the internet. Traditional Business V/S Digital BusinessTraditional v/s Digital BusinessThere are various differences between traditional business and digital business which are listed below:
FAQsWhat is the difference between traditional business and digital business?A traditional business setup has a physical presence, and it serves people locally by providing services or products through brick-and-mortar stores. In the case of a digital business setup, people sitting in any corner of the world can scroll through the web and avail the company's services and products. Why is online business better than traditional business?Digital businesses work 24/7 and overcome both geographical and timing barriers. You can carry out online purchases in the middle of the night from anywhere in the world. Traditional business has restrictions on when and where they function. What is traditional business?Organizations such as restaurants, agencies, and anything resembling an office-setup fall in this category. Traditional business-oriented organizations usually sell products or services through stores. What are traditional business models?Types of Traditional Business Models:
What is the difference between traditional and non-traditional business?The major difference between traditional and non-traditional business are: TraditionalStandalone stores, retail spaces in malls, and any other type of place that houses a usual location for a given franchise fall under the category of traditional businesses. Non-TraditionalNon-traditional businesses conduct most of their operations over the internet. They might have a few physical stores but these are generally for resolving customer issues and function as a point-of-contact. What are the types of ECommerce Business models?Four Traditional Types of Ecommerce Business Models are:
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