Trade has always been a part of human civilization and so has the development of science and technology. One of the most important achievements of science and technology is the development of the internet. Well. the expanding use of the internet has changed the course of many activities including trade. Well, trade and commerce have now been divided into two divisions based on the way transactions are carried out. The two different trade world divided due to the use of the internet are eCommerce and traditional commerce. These two are similar on some basis and at the same time, different to some extent. So, let’s get into knowing about the similarities as well as differences between eCommerce and traditional commerce.
The Basic Understanding
Traditional Commerce is the buying and selling of goods and services to the local customers through the setup of local stores. People need to physically visit the store for buying any products or booking the services. Traditional commerce requires physical presence through stores, offices, presence of visible products, and many more.
Similarly, eCommerce is the digital buying and selling of products and services through the use of the internet. The customers don’t need to physically visit the store for choosing and buying the goods. All they need to do is to surf the internet and order online. The goods and services are then delivered to the customer’s desired place. eCommerce is the modification of traditional commerce.
Similarities between eCommerce and Traditional Commerce
- Both types of commerce have the common goal of buying and selling goods and services. No matter what the medium of trade is, the common aim is to sell various products to customers.
- The main motive of eCommerce as well as traditional commerce is to reach and attract maximum numbers of customers to increase the sells.
- All the transactions done in these two types of commerce are monetary. The monetary benefit is the major priority.
- Both of these attract the customers through the attractive presentation and display of the products. Traditional stores display the product in the store in an attractive way. Similarly, eCommercial platforms display high-quality photos and videos.
Let’s Move to The Differences
|Meaning||The buying and selling of goods and products are done through the physical store.||The buying and selling of products and services are done through the use of the internet.|
|Area of service||The service provided by the traditional stores is limited within certain areas within the access of the store.||eCommerce can provide service to larger areas that can be even global.|
|Need for a physical visit||The customers need to physically visit the store for buying stuff.||The customers don’t need to visit the store physically. All they need is a stable internet connection and access to the store’s site.|
|Delivery of goods||Customers immediately get the bought products and services in traditional commerce.||It may take some time for goods to be delivered when shopping is done through online stores.|
|Requirement of delivery person||Usually, traditional stores don’t require delivery persons as the goods are instantly received by the customers.||The function of the delivery person is mandatory in eCommerce.|
|Expenses and Investment||Traditional commerce has more expenses compared to eCommerce as the venue, maintenance, furniture, staff, etc. All should be properly maintained.||eCommerce requires a lesser expense and investment . A website is the main thing to be maintained.|
|Accessibility||Offline shops are accessible during a limited time period only||eCommerce is accessible 22/7 as it resides right in customers’ devices.|
|Inspection of goods||Customers are able to inspect the goods properly before buying them.||Physical inspection isn’t possible. So, customers get to see the pictures or videos only|
Some of the business combines traditional commerce and eCommerce by selling products both through the website and physical store. Explore the competencies provided by both eCommerce & traditional commerce. Both of them have their own pros and cons. Choose the best for you!