BASE FOR COMPARISON

TRADITIONAL COMMERCE

E-COMMERCE

Definition

Traditional commerce includes all those activities which encourage exchange, in some way or the other of goods / services which are manual and

non-electronic.

E-Commerce means carrying out commercial transactions or exchange of information, electronically on the internet.

Transaction Processing

Manual

Electronically

Availability

transactions

of

commercial

For limited time.

24×7×365

Nature of purchase

Goods      can      be                 inspected

physically before purchase.

Goods      cannot      be                 inspected

physically before purchase.

Customer interaction

Face-to-face

Screen-to-face

Business Scope

Limited to particular area.

Worldwide reach

Information exchange

No      uniform      platform           for

exchange of information.

Provides a uniform platform for

information exchange.

Resource focus

Supply side

Demand side

Marketing

One way marketing

One-to-one marketing

Payment

Cash, cheque, credit card, etc.

Credit card, fund transfer, Cash in

Delivery, Payment Wallets, UPCI application etc.

Delivery of goods

Instantly

Takes time, but now e-commerce websites have created options of same day delivery, or delivery

within 4 hours.

Layers of Delivery (Profit Impact)

Reduced profits due to layers of delivery from manufacturer to customers.

(i)

(ii)

Increases         the                                profit marginof manufacturers. Customers       get                         better

prices.

Layers of Delivery (Time Impact)

Delivery from manufacturer to customers takes more overall time.

(i)

(ii)

This helps customers get faster product deliveries.

Manufacturers can have better                                inventory management.As they will always know what products customers are buying. They shall be able to maintain inventory on

JIT (Just in Time) basis.