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Manonita Rathore
Gig economy and behaviour &soft skills Expert
Asked a question last year

Is electronic commerce overtaking traditional commerce?

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Manonita Rathore
Gig economy and behaviour &soft skills Expert

As technology develops, the traditional way of commerce changes and e-commerce is becoming more popular. It’s also known as electronic commerce or internet commerce and refers to the buying and selling of goods or services using the internet.

The digital transformation had an impact on many industries, including the commerce industry. Nowadays, people are more likely to make a purchase over Amazon or similar sites, rather than in a classic store.

A number of dollars spent on e-commerce sites are growing every year.

Although e-commerce and traditional commerce have the same purpose and goal, there is a big difference between them. We’re going to explain their similarities and differences in this article.

Commerce is industry from the very beginning of the world. It is the key point of almost every other industry. The world simply cannot function without it.

So, traditional commerce is when you buy or sell face-to-face with the potential buyer. It is usually made in stores, or on the markets.

E-commerce, on the other hand, refers to buying and selling goods on the internet — through the websites. Hence prefix “e” stands for “electric”, just like in an e-mail, e-banking, e-business, etc.

This type of commerce is developed to simplify the buying process itself. There’s no need to leave the home, or more importantly, to wait in the queues. All of the purchases are done through the websites, outside the physical store.

Now when you know what traditional commerce and e-commerce look like, it’s time to point out the differences between them. It’s necessary to know the other side of the story to be able to understand it or, in this case, to manage it successfully.

The biggest difference between these two is accessibility. For instance, if you want to buy something at the store, you have to visit it during their working hours. To be able to do that, you have to first leave the house. If you’re tight with time, it’s possible you won’t make it.

Unlike traditional commerce, e-commerce is available 24 hours a day, seven days a week. No matter if a holiday or working day, you can buy whatever you want, whenever you want. Moreover, your target audience is no more just regional, it becomes national or even international.

To establish a business,  which can handle all the requirements like shipping, return processes, or sales, you need a quality infrastructure. It includes good strategy, organization, and technologies.

Besides accessibility, the difference is in employees and the ability to see and touch the product. In stores, you can always check your item right away or ask someone to help you out with it. The most important, when you make a purchase, you have it immediately, without having to wait for it to be shipped.

When you look at the e-commerce site, customers lose both factors. They can always ask a question or in Q&A. The problem is they have to wait for a response unless they have a chat bot .  Also, e-commerce sites need detailed descriptions and specs of the product, but that still doesn’t provide the right security in buying a particular product.

Obviously, both types have their pros and cons. However, with the technology development and face-paced world we live in, it makes more sense to start e-commerce rather than traditional commerce.

E-commerce brings much more benefits, it’s easier and cheaper to implement. It’s growing every day in both – demand and supply. It’s easily accessible 24/7. A customer can decide when to enter your store and it’s worldwide.

 

 

 

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