Summary
E-commerce is the exchange of products and services using digital technology, with payment for goods and services taking place online. In e-commerce, customers receive products and services from the comfort of their homes, often with a few discounts, and have them delivered right to their doorstep (Jimenez et al., 2019). In traditional commerce, all parties interact in person through face-to-face transactions to exchange products and services at agreed-upon rates (Jimenez et al., 2019). Despite the merits and demerits of e-commerce and traditional business, they both differ specifically when it comes to convenience and geographical accessibility.
Convenience
E-commerce makes both customers’ and businesses’ lives easier in terms of transactions. Customers no longer need to leave their houses in order to browse through countless directories of catalogs, compare costs across items, and select the desired product. The ability to virtually visit a company’s website at any time and from any location through the Internet makes e-commerce a superior form of connection for its potential and prospective clients.
Geographical Accessibility
In traditional trade, it is simple to increase the market’s size from a regional to a national level. In order to access the global market, business entities must invest heavily. In e-commerce, it is easier to increase the market’s size from a local to a global scale (Jimenez et al., 2019). A company can enter the worldwide market by having a website, running online marketing, and adhering to specific regulatory requirements (Jimenez et al., 2019). With e-commerce, attracting clients from international marketplaces is simple and inexpensive.
Advantages and Disadvantages of E-Commerce
Advantages
E-commerce has the potential to save everyone involved a significant amount of time. Consumers are not required to visit physical locations to examine items or read about services, and companies are not required to create up physical venues and displays (Taher, 2021). Another benefit of working with an e-commerce company is accessibility. Customers may now reach businesses all over the world with the touch of a mouse, and businesses can have a global client base.
Disadvantages
The most significant disadvantage is the considerable waiting time that transactions entail. One may purchase goods by just clicking a button. However, they will have to wait for them to come. E-commerce has flipped marketing on its head for firms, making many conventional corporate marketing strategies absurd (Taher, 2021). When a potential customer is not physically there, it might be harder to persuade them to purchase your goods.
Advantages and Disadvantages of Traditional Business
Advantages
Face-to-face communication is the traditional business model’s main benefit. The parties participating in the exchange will come together and talk about their choices. Before making a purchase, consumers may examine or try on things in person. Furthermore, businesses might use marketing strategies that have been used for decades. The ability of those without internet access to participate in conventional business is a crucial benefit.
Disadvantages
In essence, the disadvantages of traditional commerce are the same as the advantages of, E-Commerce. Traditional commerce is limited to particular schedules and specific locations (Balgomera et al., 2022). Consumers have to travel to stores during business hours to find what they need. However, they may end up finding out that it may not be out of stock at that location. Traditional commerce also tends to be more expensive than E-Commerce. This is typically due to factors such as; paying for a building, interior design and supplies, utilities, additional employees, and more.
E-commerce and traditional business are both commercial models used in the purchase of goods and services. However, there is a big difference when it comes to their mode operations, specifically in geographical accessibility and convenience. Unlike e-commerce which involves digital technology, traditional business entails face-to-face transactions. Furthermore, depending on their mode of operation, both have their own advantages and disadvantages.
References
Balgomera, K., Cruz, A. E. D., Santiago, J. E. G., & Fernandez, R. R. (2022). Consumer trust in mobile phone industry: a comparative study on traditional commerce & e-commerce. Journal of Business and Management Studies, 4(2), 100-116.
Jimenez, D., Valdes, S., & Salinas, M. (2019). Popularity comparison between e-commerce and traditional retail business. International Journal of Technology for Business, 1(1), 10-16.
Taher, G. (2021). E-commerce: advantages and limitations. International Journal of Academic Research in Accounting Finance and Management Sciences, 11(1), 153-165.