Trade is as old as the existence of mankind. The method of trade has evolved with time; as we speak today, multiple trade methods coexist.
However, the Internet World did bring a tremendous shift in trading. Today, eCommerce makes up the most significant part of the trade cycle.
If it wasn’t important earlier, it is now to understand the key differences that separate traditional and eCommerce businesses.
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eCommerce vs Traditional Business
Traditional Business includes every activity that encompasses the exchange, be it of a product or service between two or more parties.
It is exchanging a product or service for monetary value by two parties, a buyer and a seller.
Commerce would include all those activities that include trade and auxiliaries to trade.
Activities like Insurance, Marketing, Transportation, Banking, Packaging, and others are included in the activities called auxiliary to trade.
Traditional Businesses are conducted in the absence of the Internet, mostly at physical locations.
eCommerce business, as the name suggests, is conducted over the Internet. It has a Global span and could help you grow your business tremendously.
As a matter of fact, the rise of eCommerce has ignited the development of millions of different businesses across the Globe.
The definition of eCommerce, simply put, is” The exchange of goods and services between the businesses and consumers over an electronic network.”
eCommerce businesses are conducted over the Internet using a Website, Applications, Social Media sites, and much more.
Everything is conducted over the Internet, from checking out the products/services to placing orders, making payments, buying, and selling.
eCommerce isn’t fully automated in most cases. Most eCommerce businesses do have a manual side to them. For example, Getting Cash on Delivery payment modes.
eCommerce businesses have an unhindered scope and are yet to grow prolifically.
Here are different forms of eCommerce businesses generally in practice.
Different forms of eCommerce business
B2B eCommerce Business
The mode of exchange between two businesses regarding products or services over the Electronic medium is B2B eCommerce Business.
B2C eCommerce Business
The mode of exchange between business and consumer over the electronic medium for the purchase of goods and services is called B2C eCommerce business.
C2C eCommerce Business
The mode of exchange between 2 consumers over an electronic medium for purchasing and selling goods and services is called C2C eCommerce Business.
Be it a traditional or eCommerce business, the core concept of the business remains the trade of goods and services against money.
Let’s understand the key differences that distinguish eCommerce businesses from traditional businesses.
eCommerce vs Traditional Business
|Point of Comparison||Traditional Business||eCommerce Business|
|Meaning||Traditional Business includes the exchange of goods and services between two parties involved in a trade at a physical location, traditionally.||eCommerce businesses are conducted over the Electronic medium and include the exchange of goods and services between 2 or more parties, like traditional businesses.|
|Timings||Traditional Businesses have a restricted time frame and operate for certain hours a day.||eCommerce businesses are usually conducted round the clock, 24*7 throughout the year. You get a business even when you are not working when you are selling electronically.|
|Process||Traditional Businesses are majorly manual with bits of automation.||eCommerce is largely and at times even fully automated. It requires zero manual intervention to place an order, processes the payments, and make deliveries.|
|Physical touch||Goods and services can be physically accessed at the point of sale.||There is no way to physically assess the goods or services while placing orders. Videos, Images, and Descriptions try to blur the limitation caused by the absence of physical touch.|
|Interaction||Direct interaction with the buyer is possible which establishes faith in the purchase of high-value items.||Direct face-to-face interaction is absent in eCommerce Businesses. However, Firms today offer 24*7 support and care, Call assistance, Video Call services, and much more to gain the trust of people over the Internet.|
|Reach||The reach of traditional business remains limited geographically.||eCommerce businesses have an opportunity to expand globally.|
|Delivery of Goods||In traditional businesses, you get the delivery of goods almost instantly.||In an eCommerce business, it takes at least a day to get the product or service delivered to you. Most of the time it takes up to a week to get the product delivered from eCommerce businesses.|
|Focus on resources||The resource focus is on the supply side.||The resource force is demand inclined.|
|Payment Mode||Cash Credit Cards, Debit Cards, net banking, UPI||Cash, Credit Cards, Debit Cards, net banking, UPI|
|Marketing||Traditional business adopts one-way marketing for their products and services.||eCommerce businesses conduct one-to-one marketing and in many cases are a 2-way street.|
Earlier the limitations of eCommerce businesses cautioned people from purchasing or selling online. However, the Internet world is more secure than ever.
The tech is enhanced more than ever. The evolving nature of eCommerce business has removed the lines that make traditional businesses different.
In today’s world, eCommerce businesses are the way of today and the future.
They are more enhanced than traditional commerce and have practically removed all the limitations of a traditional business.
The world of eCommerce offers an opportunity for growth unimagined by the mass.
It’s time for you to transform your traditional business with an upgrade of eCommerce.
At DeepIT, we help you smoothly transition from traditional to eCommerce with our powerful IT services.
Be it web development or app development, we are here to address your unique business needs in the most efficient way.
Get in touch with us and allow us to help you make a successful entry into an eCommerce business.