How difference e-commerce and traditional commerce?

With the development of technology, e-commerce has been born and is increasingly growing strong, changing the consumption habits of customers as well as the business methods of many companies. However, traditional commerce has not disappeared but still remains one of the important activities in daily life. These two forms do not eliminate each other but complement and combine to create a complete picture in the world economy. So what are the differences between e-commerce and traditional commerce?

Overview of e-commerce and traditional commerce

E-commerce

E-commerce is the buying and selling of goods and services and providing support services for transactional activities through the use of electronic means. All activities such as purchasing, selling, ordering, and payment are conducted over the internet. Currently, there are four main types of e-commerce:

• B2B: Business-to-business transactions between companies.
• B2C: Exchange of goods and services between businesses and individual customers.
• C2C: Buying and selling of goods and services between individual consumers.

In recent years, with the growing demand, consumers can easily and quickly order food, clothing, household items, electronics, books, etc. on e-commerce websites or mobile apps such as Shopee, Tiki, Lazada, Baemin, The Gioi Di Dong, Dien May Xanh, etc. These items are paid for through electronic wallets, internet banking, QR code scanning, bank transfer, etc., and are delivered directly to the consumer’s doorstep by shipping companies. These are specific examples of e-commerce.

Traditional commerce.

Traditional commerce is the act of trading, exchanging goods, information, buying and selling products and services directly between buyers and sellers without using the internet. Typically, the seller will use physical stores to conduct direct transactions, face-to-face with customers. Going to the market to purchase goods is a classic example of traditional commerce.

In the early 2000s, when there was a need, consumers would go to markets and supermarkets to buy food, clothing, household items, electronics, etc., and pay for them in cash rather than through bank transfers, credit card swipes, or QR code scans of e-wallets as is the case today. In the event that the consumer purchases too many goods and is unable to carry them home, the stores and supermarkets will assist with delivery to their homes. These are examples of traditional commerce.

What is the difference between e-commerce and traditional commerce?

E-commerce and traditional commerce differ in several ways:

• Transaction medium: E-commerce uses the internet and electronic means to transact, while traditional commerce uses physical storefronts.

• Transaction scope: E-commerce can transact globally, while traditional commerce is limited to geographical boundaries.

• Transaction time: E-commerce can transact 24/7, while traditional commerce is limited by business hours.

• Payment methods: E-commerce has various payment options such as digital wallets, bank transfers, credit cards, QR code scanning, while traditional commerce usually accepts cash payments only.

• Convenience: E-commerce saves users time and transportation costs to physical stores, and makes buying and selling faster and more convenient.

• Competition: E-commerce has more intense competition due to the larger number of businesses participating, while traditional commerce typically has fewer competitors in local areas.

In summary, e-commerce and traditional commerce have clear differences and both have their own advantages and limitations. Choosing the appropriate method for a business’s purposes will help achieve the highest effectiveness.