Gone are the days when business activities, such as exchanging products and services for money had to occur in a conventional setting between two parties. Traditional commerce is distinguished by the consumer’s visit to the market, an inspection of various products, selection of desired items, purchase, and actual payment. However, new methods of selling products and services have emerged with the advent of technological advancements.
eCommerce is the exchange of products and services over the medium of the internet, where payment for goods and services occurs digitally. E-commerce is a type of online shopping where people can order products and services from the comfort of their homes, often with several discounts, and have them delivered right to their doorstep. Traditional commerce is the act of buying and selling goods and services via conventional brick-and-mortar stores. Commerce entails direct communication with all parties to trade products and services at agreed-upon rates.
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Saturday 23 Nov. 2024
Functions of E-commerce
- Online shopping: E-commerce allows consumers to browse and purchase products and services online from anywhere at any time, without the need to physically visit a store.
- Payment processing: It facilitates secure online payment processing through various methods such as credit cards, digital wallets, and bank transfers.
- Order fulfilment: E-commerce platforms manage the entire order fulfilment process, from processing orders to shipping products and handling returns.
- Customer service: E-commerce offers various customer service options such as online chat, email, and phone support to ensure customer satisfaction.
- Marketing and advertising: Online platforms provide tools for marketing and advertising products and services to reach a wider audience.
- Inventory management: E-commerce platforms provide tools for inventory management, including real-time inventory tracking, automated restocking, and product categorization.
- Data analysis: E-commerce platforms collect data on customer behaviour and preferences, which can be analyzed to improve business operations and marketing strategies.
- Supply chain management: E-commerce platforms can optimize the supply chain by streamlining the procurement and delivery of goods and services.
DTDC is one of India’s known courier service providers that excels at operational efficiency. It employs a robust technology solutions to provide seamless order fulfilment for the benefit of its consumers and allows them to track in real-time. These advantages are undoubtedly leveraged by the company which helps them reduce DTDC courier prices.
Difference between Traditional Commerce and E-commerce :
| TRADITIONAL | E-COMMERCE |
| Meaning | |
| Traditional commerce refers to business dealings or information sharing, as well as the buying and selling of goods and services from person to person without the use of the Internet. | E-commerce is the term used to describe business transactions, information sharing, and the electronic purchase and sale of goods and services over the Internet. |
| Accessibility | |
| Standard practices are challenging to create and sustain in conventional trade hence It is only accessible for a short period each day. | Standard practices are simple to develop and uphold in e-commerce, making them available 24 *7. |
| Interaction | |
| Traditional trade involves direct communication between the vendor and the customer. It is conducted by telephone, mail, or face-to-face channels. | Through the use of electronic media and the internet, the vendor and the customer engage indirectly in e-commerce. |
| Scope | |
| Its scope is limited to the physical areas as transaction processing is manual in traditional trade. | Worldwide scope as transaction processing is automated. |
|
Speed |
|
| In conventional trade, product delivery is immediate. | In e-commerce, product delivery can be immediate as well as take 2-3 business days to reach the customer. |
| Reach | |
| Where digital networks are not accessible, traditional trade is conducted. Traditional commerce is often localized and confined to limited consumers. | E-commerce covers every nook and corner of the world due to the easy availability of the internet. |
| Focus | |
| On the supply side. | On the demand side. |
| Availability of information | |
| There is no such standard platform for customer support or information sharing. | There is a standardized platform for information exchange and customer assistance. |
Impact of Traditional Commerce and E-commerce on The Marketplace
In today’s competitive environment, e-commerce is emerging as the most important actor and contributor to the global economy’s growth and development. India is likewise witnessing an e-commerce business revolution in its home market. In the Indian context, e-commerce players, on the one hand, generated new and abundant job possibilities, enhanced the quality of products and services, and provided an enhanced shopping experience to Indian customers through discounts, cash-backs, and other appealing offers.
- Convenience & Easiness
For many people in the world, e-Commerce has become one of the preferred ways of shopping because of its easiness and convenience. They can buy products or services from the comfort of their homes at any time.
- Reduces energy consumption
One positive effect of the emergence of e-commerce is that it may save energy. Consumers who shop online rather than drive to stores use less fuel and their cars emit less pollution. Also, because e-commerce reduces the need for warehouse space to house goods near retail stores, these warehouses use less energy.
- Cost Reduction
E-commerce can reduce costs for consumers when companies cut down on middlemen involved in distributing goods, warehouse space to store the goods and personnel expenses. E-commerce also enables companies to manage their inventory better. To be competitive, businesses are likely to pass down at least some of these savings to consumers
- Decreasing the cost of inventory management
With an e-commerce business, the suppliers can decrease the cost of managing their inventory of goods so that they can automate inventory management using a smart management system, further saving their operational costs.
Traditional commerce on the other hand has been the backbone of the country’s economy for ages and has facilitated the exchange of goods and services across the world. Some of the major impacts of traditional commerce are discussed below:
- Establishment of Physical Marketplaces
One of the most significant impacts of traditional commerce is its role in creating physical marketplaces. These marketplaces provide a platform for buyers and sellers to interact directly and engage in trade. Traditional commerce has also facilitated the development of physical retail stores, which provide a wide range of products to consumers
- Development of supply chains
The growth of traditional commerce has led to the establishment of supply chains that ensure goods are available in the right quantities and at the right time. This has created employment opportunities for people working in the retail and logistics industries.
However, traditional commerce has also faced significant challenges in recent years due to the rise of e-commerce. Many consumers now prefer the convenience and accessibility of online shopping, which has led to a decline in foot traffic for traditional retail stores.
CONCLUSION
Overall, both traditional and online commerce has benefits and drawbacks, and a customer must decide which is best for him or her based on his or her needs and preferences.
