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Traditional Commerce Versus E-Commerce

Table 1.1 shows the comparison between traditional commerce and e-commerce.

Table 1.1: Difference between Traditional Commerce and E-Commerce
 Traditional Commerce 
 E-Commerce 
 In traditional commerce, cost has to be incurred for the role of middlemen to sell the products. E-commerce is very cost effective. The total overhead cost required to run an e- business is comparatively less.
 It takes a lot of time to complete a transaction in traditional commerce. It saves a lot of valuable time for both the consumers and business firm.
 Customers themselves have to directly visit the business firm for the purchase of products. E-commerce provides convenience to both the customers and the business. Customers can browse through the respective website and order for the product, from anywhere in the world.
 It is not easy to expand business, since business organisations have to incur a lot of expenses to expand the business. In e-commerce, it is easy to expand the size of the market from regional international.
 It takes a lot of time and money to introduce a new product and analyse the response of the customers. It is easy to introduce a product on the web | site and get the immediate feedback of the customers.
 The cost incurred on the middlemen overhead, inventory and limited sales pulls down the profit of organisation. It helps to increase the sales of the organisation and also helps to enjoy greater profits by increasing sales, cutting cost and streamlining operating processes.
 Business is open only for a limited time. Round the clock 24x7 service is available in e-commerce.
 It is suitable for perishables and "touch and feel" items. It is not suitable for perishable goods and high valuable items such as jewellery, but suitable for purchasing tickets, books, music and software.
 In traditional commerce, the interaction between the business and the customer is "face-to-face". | In e-commerce, the interaction between the business and customer is "screen-to- face". Since there is no personal touch in e-business.
 There is manual processing of business transactions in traditional commerce. There are chances of clerical errors to occur. There is an automated processing of helps to minimise the clerical errors. business transactions in e-commerce. 1t
 The business relationship in traditional commerce is vertical or linear. In e-commerce the business relationship is characterised by end-to-end.



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