Traditional commerce involves the direct exchange of goods and services for a price, occurring in person, and encompasses additional services such as insurance, banking, and transportation, which are essential for facilitating successful transactions between buyers and sellers.
In contrast, e-commerce, or electronic commerce, refers to the transaction of products, services, money, and information between businesses and consumers via electronic networks, primarily the internet.
Currently, e-commerce is experiencing remarkable growth, particularly in the context of the ongoing Coronavirus pandemic, which has led to lockdowns and social distancing measures. An increasing number of individuals are opting to place orders from the comfort of their homes, receiving both essential and non-essential items through home delivery. This raises the question: how does this business model differ from traditional commerce? Let us explore:
E-commerce operates entirely in a digital environment, eliminating face-to-face interactions between buyers and sellers, whereas traditional commerce relies on direct personal engagement.
In e-commerce, communication occurs through digital channels such as email or website chat, while traditional commerce allows customers to engage directly with sales personnel in physical stores.
Marketing strategies in e-commerce can be categorized as inbound or outbound. Inbound marketing focuses on delivering valuable content to attract customers, utilizing tools such as blogs, infographics, and videos, alongside online advertisements like pay-per-click. Conversely, traditional commerce predominantly employs outbound marketing techniques, which include advertisements in print media, radio, television, billboards, and flyers.
The marketing approaches in e-commerce enable personalized, one-on-one interactions, a feature that is not feasible in traditional advertising methods, which tend to be generic and one-directional.
Furthermore, e-commerce provides a variety of payment options, whereas traditional commerce may not offer the same level of convenience, with many establishments accepting only cash or a limited range of payment methods, such as cash and credit cards.