Do you know what is the difference between Traditional and E-Commerce businesses? If you do not know, then today I am going to tell you the difference between Traditional Business Vs E-commerce Business through this article. Before understanding the difference between these two, it is important to understand both of them, so let’s know about them in detail.
What is Traditional Business?
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The traditional business we call that business when we open our shop, or mall at one place (our own land or rented land). At that shop, we wait for the customer. We open our shop for 10 to 12 hours. We call this business a traditional business.
What is E-Commerce?
E-commerce or electronic commerce is the process of buying and selling products and services over electronic systems such as the Internet and other computer networks. It also includes the complete online process of marketing, selling, delivery, servicing, and making payments for products and services.
Traditional Business Vs E-Commerce Business?
| Basis of difference | Traditional Business | E-Commerce Business |
| Location | A shop or mall is opened at a permanent place in the market. Where the number of customers is high. So that you can make a profit. | You start this business through a website or app. You must have a computer or mobile phone to ask for goods on this. |
| Presentation | A lot of attention is paid to the layout of the store or shop’s poster and to the customer service. | On the website also, we are made the layout of the poster. Or to reach from a star to the people, an advertisement has to be done. |
| Method of payment | No cash, credit card, and UPI are all facilities for money payment. | Now credit cards, debit cards, UPI, and cash on delivery are all available to pay for ordered goods. |
| Delivery | The delivery of the purchased goods is given in the store or mall itself. Home delivery can also be arranged in the local area | The couriers delivered at the doorstep are ordered through the customer. |
| Size | The area of the shop or store depends on the type and size of goods sold and the number of customers | The size of e-commerce by customers. Stores are also expected to have heavy traffic on the affected products and e-stores (ex:- a large number of orders) with sufficient bandwidth, processing power, and data storage capacity. |
| Pricing policy | The shops follow the fixed price policy most of the time. | Pricing may depend on season, order size, stock condition, etc. |
| Security | Requirement of Physical Security of Cash Inventory (Stock): Security is maintained through security guards. Closed-circuit cameras and alarm systems. | The e-commerce site is secured through passwords, encryption, screening routers, proxy servers, etc. The scale of crimes committed against online stores is huge |
| Catalog | There may be physical catalogues that are generally invalid and rigid. | Keep a digital catalogue that may change from time to time based on weather, stock conditions, etc. |
| Target | The goal of a shop is to sell to many customers. The idea is also to make customers a regular item for times to come. Its purpose is to create personal contact with customers. | The goal is to get as many different customers as possible. There is no personal contact order from customers. |
| Expansion | Extend horizontally, le., gaining more space. | Lean vertically, extending employees, supervisors, and managers. much more |