Traditional commerce is part of a business that has all activities that facilitate exchange. Trade and auxiliaries of trade are kinds of traditional commerce whereas e-commerce refers to the exchange of goods & services, funds/information between customer and business by means of an electronic network
The major differences between Electronic commerce (E-commerce) and traditional commerce are as follows −
| E-commerce | Traditional commerce |
|---|---|
| It is cost-effective. | It is less cost-effective than E-commerce. |
| No role for middlemen. | Middlemen have a role to play in traditional commerce. |
| Less overhead cost. | High overhead cost than E-commerce |
| Takes less time. | Takes more time. |
| Better connectivity. | No better connectivity. |
| The size of the business is easily expandable. | The size of the business is not easily expandable. |
| The new product is easily introduced. | The introduction of new products is not easy. |
| Immediate analysis of customer feedback can be done. | Takes more time in analysing customer feedback. |
| Increase profits by cost-cutting and streamlining operating expenses. No physical inspection. | Physical inspection. |
| 24*7 accessibility. | Limited time of accessibility. |
| Not suitable for perishable and high-value products/items. | Suitable for perishable and high products/items. |
| High-qualified staff is required. | High-qualified staff is not required. |
| Screen-to-face customer interaction. | Face-to-face customer interaction. |
| Automated process of business. | Manual processing of business. |
| End-to-end business relationship. | Vertical/linear business relationship. |
| The chances of fraud are very high. | The chances of fraud are less compared to E-commerce. |
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