The days of conducting business, such as buying and selling goods and services for money solely through conventional means, in which a consumer physically visits a physical store, browses the available goods, makes a selection, and then pays the agreed-upon price, are long gone. However, with the development of e-Commerce, customers can now make purchases, pay bills, or transfer money with only the click of a button.
Even though this is nothing more than a fallacy, many people continue to favor traditional trade over e-Commerce because they are under the impression that the latter does not provide adequate protection. However, this is not the case. The traditional method of conducting business and online commerce each have advantages and disadvantages; therefore, we have attempted to highlight the key distinctions between them.
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The Meaning Of The Term “Traditional Commerce”
Whether it be traditional commerce or simply commerce, commerce is a business component that incorporates all the different activities that make exchange possible. The term “commerce” refers to the actual act of trading goods and services and the support activities that go along with it. Auxiliaries to trade include banking, insurance, transportation, advertisement, packaging, and so on; these activities assist in the successful completion of exchanges between parties. The term “trade” refers to buying and selling goods and services for cash or in kind.
When broken down into parts, commerce refers to all of the processes, beginning with the manufacturing stage and continuing to the point when the ultimate consumer makes their purchase. When a product is manufactured, it does not immediately make its way to the end user; rather, it must first travel through a series of intermediate steps classified as commercial operations. Its primary purpose is to fulfill customers’ needs by making products accessible at the ideal time and location, following their preferences.
The Meaning Of “E-Commerce”
The term “e-Commerce,” which is short for “electronic commerce,” describes the transaction of products and services, monetary transactions, or information between businesses and customers through an electronic network, such as the internet or an online social network. Trading and offering help to trading operations through the use of the electronic medium is what is meant by the term “e-Commerce.” This indicates that all actions related to trading, such as buying, selling, placing orders, and making payments, are carried out through the internet. The following topics will be covered concerning the breadth of e-commerce:
- B2B commerce is the term used to describe a commercial transaction that occurs via the internet between two companies in the same line of business.
- B2C commerce is the exchange of goods and services between a business and a customer over the internet.
- “C2C” or “customer-to-consumer” commerce refers to exchanging goods and services between consumers through electronic channels.
- Intra-B commerce: Intra-business e-commerce refers to transactions that occur within a company or other commercial establishment and involve the utilization of electronic media.
The Difference Between Traditional Commerce And Electronic Commerce
The process of trading products and services via digital mode, with the payment for the goods and services in electronic form, is referred to as e-commerce. E-commerce, or electronic commerce, is a kind of online retail industry in which customers can easily buy goods and services from the comfort of their own homes while taking advantage of several discounts and having the things delivered right to their front doors. The process of directly trading products and services in the form of money is known as “traditional commerce.” Dealing with all parties involved in a transaction in traditional commerce face-to-face and in person to carry out the exchange of goods and services at predetermined pricing is required.
Through e-commerce, the majority of time and money that would have been spent on traveling and selecting goods can be saved. The payments may be made via any digital channel, including digital wallets, net banking, credit cards, and debit cards. With the advent of e-commerce, it is now possible to purchase items at any hour of the day or night, hassle-free, whenever we find ourselves with some spare time. E-commerce offers several advantages, like the convenience of quickly purchasing goods and services.
The beginning of traditional commerce may be traced back to when people started using a barter system millions of years ago. The practice of exchanging products for one another rather than for monetary value during times when monetary transactions were not possible is known as the barter system.
This is the origin of traditional commerce, which began here and has persisted until today in monetary trade rather than the simple exchange of products. The advent of electronic commerce in the early 20th century led to a decline in the use of traditional business practices and a corresponding loss of popularity
Head-To-Head Comparison Between E-Commerce Vs. Traditional Commerce
Here are the top 9 ways that e-commerce and traditional commerce are different.
E-commerce: E-commerce is a form of online shopping where users can buy goods and services from their electronic devices, such as laptops, mobiles, and tablets.
Traditional commerce: Traditional Commerce is a traditional approach to buying goods and services in person, which involves face-to-face dealing.
- E-commerce: It is used to save valuable time and money.
- Traditional commerce: It is ancient and still in use where the digital network is not reachable.
- E-commerce: It is easier to use and operate if the customer has essential digital gadget knowledge.
- Traditional commerce: It can be followed by any person irrespective of education or knowledge.
- E-commerce: It is in electronic or digital mode only.
- Traditional commerce: It can be in any form, which is non-electronic or manual form.
- E-commerce: It is available round the clock.
- Traditional commerce: It is available for a limited time as prescribed by the law and based on the type of business.
- E-commerce: Inspecting a product before purchasing is not possible in this type.
- Traditional commerce: Inspecting a product before purchasing is possible in the traditional business model.
- E-commerce: Inspecting a product before purchasing is possible in the traditional commerce business model.
- Traditional commerce: It involves face-to-face involvement of both buyer and seller
- E-commerce: More business can be done easily without any hassles
- Traditional commerce: It is difficult to perform more business in this model
- E-commerce: Easier to maintain this as only the warehouse is enough to store the goods.
- Traditional commerce: It is cost-effective as display and showcase of the products are required to attract customers.
Critical Differences Between E-Commerce And Traditional Commerce
- E-commerce and traditional commerce are both well-liked options available on the market; however, several key distinctions between the two types of business need to be taken into account.
- Traditional commerce takes place exclusively offline and in person or face-to-face. In contrast, e-commerce is conducted solely through digital means and the internet, with all interactions taking place in electronic transactions.
- In contrast to traditional commerce, which is confined to a specific geographical area, often a smaller one, e-commerce may be accessed anywhere in the globe and has more interconnectedness.
- Whereas the information of exchange in traditional commerce takes place in the form of hoardings or pamphlet distribution or through any physical method of exchange, E-Commerce information of exchange takes place in various forms, such as through digital ads or emails, etc.
- In contrast to traditional commerce, which can only engage in one-way marketing, e-commerce can facilitate one-to-one marketing.
- E-commerce can accept several different payment methods, including digital wallets, online transactions, and cash on delivery; traditional commerce, on the other hand, can only accept payments in the form of cash in person.
- While in conventional commerce, things are delivered instantly, in E-commerce, they may not arrive until the following day, depending on logistics and other factors related to the client’s locations.
- In traditional commerce, there will be no discounts or fewer discounts, and no other options except to contact new sellers, which takes time. On the other hand, e-commerce delivers a lot of discounts at cheaper rates than traditional commerce.
- Traditional commerce does not offer any kind of customer support. However, e-commerce does, and it does so in a variety of formats, such as the opportunity to chat with a customer service representative or to make a direct phone call to a customer service representative.
- Compared to traditional commerce, which does not offer a return policy unless the product is damaged, E-Commerce allows customers to send back products within 7–15 days if they decide they are not interested in them or do not like them. In contrast, traditional commerce does not offer this type of return policy.
- In contrast to traditional commerce, which can only accommodate a limited number of products from a single vendor due to space constraints, e-commerce delivers many products over a broad range of categories and a diverse selection of those products.
Integration Of E-Commerce And Traditional Commerce
Combining online and offline purchasing allows you to reach a broader client base and provide your regulars the choice to buy your wares from any location they have internet access.
How, then, can you successfully manage a company that has a foothold in both the actual world and the virtual one?
First, you must guarantee a solid connection between your physical and virtual stores. There are two possible interpretations of this, depending on the platform you’re using:
1. Integrating Your Point-Of-Sale System Into Your Online Shopping Cart
Shopify and BigCommerce are just two examples of e-commerce platforms that can integrate with point-of-sale (POS) software like Clover, allowing seamless data sharing between the two.
This ensures that you never sell something you don’t have in stock by instantly reflecting in-store internet transactions.
2. Relying On a Unified Method. There Are Solution Providers That Provide Both Online And Offline Options.
For instance, Shopify provides its own point-of-sale system. By going with a single provider for all your point-of-sale and e-commerce needs, you may avoid the hassle of integrating several platforms.
The best option for you relies on your specific technical requirements and infrastructure. If you’re content with your current eCommerce platform, inquire as to whether or not they offer a built-in e-commerce option or support integration with other POS systems. Whatever path you take, something is still missing from your toolkit for doing business online and off.
In this case, we’re referring to your online banking system. You must be able to easily collect payments whether conducting business in-person or online. Therefore, you require a payment platform that is accessible both online and off, allowing you to accept various payment types.
It is at this point that Stax becomes useful. If you’re looking for a streamlined method of accepting payments, look no further than our comprehensive platform.
- Brick-and-mortar. Stax is compatible with various POS and credit card terminals, allowing you to better serve customers and speed up the checkout process.
- eCommerce. Your eCommerce store can be powered by Stax and its compatibility with numerous payment gateways. Our convenient online shopping cart allows you to submit and fulfill orders simultaneously.
In a nutshell, the Stax Platform consolidates all of your financial transactions into a single, user-friendly interface. Every one of the online payments you accept will be recorded and available there, alongside your bank statements, deposit reports, and PCI compliance status.
If you use Stax, you can forget the hassle of using two separate merchant processing systems for brick-and-mortar and online sales.
E-Commerce And Traditional Commerce: A Concluding Thought
E-commerce is quickly becoming the most popular method of conducting business and is now being utilized by most business traders and sellers for retail and wholesale transactions. The practice of traditional trade is still common in locations that are geographically remote from metropolitan centers and that lack the infrastructure necessary for receiving goods and services. Additionally, areas, where a minority of the population lacks the financial means to purchase digital devices are classified as illiterate, and traditional trade is a common type of economic activity in these areas.
E-commerce has reached most of its target audience now because digital devices can be purchased at the most affordable prices, and many sellers compete with one another. In addition, this process has become much more straightforward, and day by day, more people are also becoming connected to the digital world as a direct result of the efforts made by the industry of e-commerce. E-commerce and traditional commerce methods are both still popular today due to the availability, demand, and continued rise of customer demand.
7 thoughts on “e-commerce vs traditional commerce statistics in 2022”
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