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How Does an Ecommerce Business Differ from Traditional Business?
How Does an Ecommerce Business Differ from Traditional Business?

September 15, 2021

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Starting a business is not an easy task, it's something that requires proper planning. The main question that will be highlighted in this post is how ecommerce is different from traditional business which you will come to know after going through this entire blog.

Traditional business is local store that offers products and services to local customers. In simple terms, customers need to step to the store for buying the products. Earlier there was no word like ecommerce for setting the business online.

Also, in traditional business, the cost of infrastructure is high. Renting office space is quite expensive

For entrepreneurs, who are muddled in deciding between the two types of businesses need to be aware of the difference between them. Differences will not make one type best however they will help one in deciding the one out of two.

Since different businesses are suitable for different market types, some want to attract local customers while some wish to attract international customers depending on the organization size as well as type.

Now let's get started with this guide! Happy Reading!

Traditional Business

It’s a practice of selling products face to face. Such businesses are limited to specific locations only so they don’t have worldwide audience. 

In traditional business, one can see the product's quality, ingenuity and so on that a customer is buying. However, they are not available 24*7.

Ecommerce Business

Ecommerce is the new type of business where buyer and seller don’t have to interact face to face, however can get in touch over the internet for buying and selling products. In reality, ecommerce business has grown a lot.

Ecommerce sites are boosted up and more and more people are turning to them. Due to numerous benefits like 24 hours availability, ease of access, worldwide delivery and so on. 

  • Traditional commerce implies commercial transaction of goods and services without using internet. Ecommerce is done via internet for transaction of products
  • Business relation in case of traditional commerce is direct whereas in ecommerce its end to end
  • In traditional, business scope is limited to specific geographical area while in ecommerce its worldwide
  • Product delivery is quick in traditional whereas in ecommerce it generally takes some time for delivering the products
  • You will be able to get much better customer support in ecommerce by direct chat, email or call. But with traditional, this is not the case.
  • You will get different product ranges with ecommerce but with traditional, there’s a possibility that you may not get much variety due to inadequate shop space.

The competition is in favour of shopping online due to users' reliability. Shopping sites like Flipkart, Amazon, Myntra have changed the ideas of customers getting out in search of products.

But still there are lots of people who love to do live shopping in order to inspect the product before buying it.

How can One Promote their Traditional Business?

One can promote the traditional kind of business through the below given mechanisms like:

  • Business cards and personalized giveaways
  • Design brochures for products
  • Run advertisements of business via magazines, radio, TV etc
  • Pamphlets, posters for your shop or brand
  • Mouth to mouth advertising

Since radio and TV forms of advertising are expensive and it's not possible for every business to afford it.

How One Can Promote Ecommerce Business?

One can promote their online business by below given means:

  • Creating and updating website blogs
  • Utilize social networking sites
  • Send newsletters to subscribe visitors
  • Digital marketing
  • Paid ads on Google, affiliate marketing, Facebook etc

Risk Factor

If it's about risk factors then traditional business is quite risky than ecommerce business. Wondering why? Since ecommerce business requires investment initially for website designing as well as promotion.

In ecommerce there is less investment and odds of output are more. However, in traditional form of business, there is more investment and no surety of return.

Ecommerce is not suitable for perishable and high value products. So, in such a case traditional business works better. On the other side, it's not appropriate for software and music purchases. So, both the modes are required in the market today.

Wrap Up

Hope you have enjoyed reading this post and it helped you in knowing more about the difference between the two. In short, there’s a requirement for both and both have their own pros. But there’s no doubt in saying that ecommerce business has captured a huge market.

Ecommerce is quite trending nowadays since it saves enough time and money thereby providing a comfort zone for shopping from their own place.

But, still traditional form of marketing is followed where delivery of products takes time especially in urban areas. Also, some people who won't have much idea about digitalization or utilization of gadgets shop using traditional commerce method.  

So, at last we can say both have pros and provide benefits in some way. Both are equally vital for nation’s economy.

 


 

 

 


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Ashish is a seasoned industry veteran and holds strong experience in Technology PreSales Customer Service and People Management

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