More and more business owners see the need to bring their businesses online. While e-commerce
will not totally replace traditional commerce, it is now a preferred mode of doing business.
Basically the difference between e-commerce and traditional commerce is the fact that all
business transactions in e-commerce are done online. Both involve the automatic process of
transacting or sharing of information to complete a business deal. One obvious drawback of
traditional commerce is its limitation to a particular geographical area. That already presents a
number of challenges because as a business owner, you want to quicken transaction in order to
satisfy your customers.
As implied, e-commerce businesses are on the rise due to the convenience of online transactions.
This convenience results in increased cost effectiveness as compared to traditional commerce
where middlemen are employed to deliver or distribute the products. Direct communication and
interaction with customers are perhaps one of the strongest points of e-commerce. It eliminates
trouble for both parties because all concerns are immediately addressed as the online world
opens up opportunities for communication that will take a long time in traditional commerce.
The traditional method of distribution may also require the operation of several branches to cater
to the needs of customers in each target area. This means more financial investment too with no
promise of immediate returns.
Another advantage of e-commerce is the presentation of other types of services or products. You
can request for a quick feedback by sending out links to online surveys to ensure customer
satisfaction. In this way, you can also immediately and easily find out the preference of your
target group which will in turn, allow room for easily customization or even replacement of
products. Traditional commerce can also offer this option but again, it will take time to gather all
of the data and time for decision-making should also be set. Basically, e-commerce saves you
two very important resources: time and money.
On the other hand, e-commerce also presents a problem that needs serious consideration:
customers cannot physically inspect goods or products. Moreover, you also need to strengthen
the security of website or modes of payment. As mentioned, e-commerce cannot totally replace
traditional commerce because another advantage of the brick and mortar type of business is the
shopping enjoyment that e-commerce cannot offer. There is a cathartic effect in physically
involving yourself in a shopping spree. Feeling, smelling, and trying on the products offer a
radically different experience from the mere viewing of a product online.