| Traditional Business | E-commerce Business |
|---|---|
| Operates at business hours within a certain period of time. Doesn’t being able to conduct business 24 x 7 | Being able to conduct business 24 x 7 |
| Increase cost to buyers | Reduce cost to buyers |
| Increase cost to suppliers | Reduced cost to the suppliers |
| Market entry was not easy | Easy market entry – Market entry is easier with no geographic limits |
| Not much variety of goods was manufactured at that time | Increase in variety of goods – As the market expands; wide variety of goods are available than ever before. |
| Middleman – Indirect communication | No Middleman-There is a direct contact with customers in E-commerce through internet without any intermediation. Companies can now focus more on specific customers by adopting different one-to-one marketing strategy |
| Global reach was not possible at that time | Global reach-just by creating a web site and uploading it on the server, a firm is able to reach millions of customer worldwide |
| Less Customized products | Customized products – On the basis of the demand from the customers for their requirements about the product, it is possible to differentiate the product. There are many websites which helps in reorganizing, revising or editing the digital products. |
| No Information Sharing | Information sharing – It takes only few seconds to share information over the internet. A firm can e-mail its customers about any new product and can solve their product related queries and welcome suggestions. This is a major advantage overcoming the limitation of traditional methods of doing business |
| Less Global Reach all over the world. | Global reach-just by creating a web site and uploading it on the server, a firm is able to reach millions of customer worldwide |
| Profit margins are very low as compared to E-Commerce business due to manual handling of transactions, paper exchanges, Transportations and Goods etc. | Higher profits – A very great amount of reduction in cost is measured in doing ecommerce in terms of various kinds of commercial transactions i.e. no manual handling of the transactions, paperless exchange, easy payments from customers, no transportation except in the case of tangible products and higher profit margins from higher sales volume. Also business over the internet attracts every customer from all over the world and exposure in the new markets enhances the profits of the business firm. |
| Doesn’t ensure much secrecy about payments and unauthorized access. | Ensure secrecy – The various security measures that are in- built are used in e-commerce Transactions to prevent any unauthorized access to information on the internet. These are encoding, encryption, passwords, etc. |
Traditional VS Ecommerce
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