e-commerce

10 Honest Things About E-commerce vs Traditional Commerce

E-commerce & traditional commerce

E-commerce has revolutionized how we shop, starkly contrasting with traditional commerce. Unlike physical stores, electronic-commerce operates globally, 24/7, from your couch. This digital model offers unparalleled convenience and access to a vast array of products without geographical limits. It also boasts lower overhead for businesses, often translating to better prices for consumers. However, it lacks the tactile experience of holding a product or the immediate gratification of walking out with a purchase. Traditional commerce, conversely, thrives on personal interaction and sensory engagement within a local setting. The fundamental difference lies in their reach and the consumer experience they prioritize.

πŸ›’ What is Commerce?

Commerce means buying and selling. It’s how people swap things β€” like when you go to a store, give money, and get a toy or snack in return. There are two main types of commerce:

  • Traditional Commerce (the old way)
  • E-Commerce (the web way)

Let’s break them down!

🌐 What is E-Commerce?

E-commerce stands for electronic commerce. It is buying and selling goods online.

Instead of going to a physical shop, you visit an e-commerce website (e.g., Amazon, Daraz, or Flipkart) and order the product. It’s delivered at your doorstep!

πŸͺ What is Traditional Commerce?

Traditional commerce is the way people used to shop before the internet.

Imagine:

Going to a store around your place

Using money or cards to pay for things

Speaking to the store owner in person

This is how your parents or grandparents mostly shopped.

Examples:

  • Buying clothes from a mall
  • Buying vegetables from the local market
  • Buying books from a bookstore

Examples of Electronic-commerce websites:

These websites are hosted on electronic-commerce platforms like Shopify, WooCommerce, or Magento, which allow sellers to host their online shops.

πŸ†š Electronic-Commerce vs Traditional Commerce

Let’s compare how they differ in a simple table:

FeatureTraditional CommerceE-Commerce
LocationPhysical storeOnline store (website)
TimeFixed hours24/7 available
PaymentCash, cardOnline payments, UPI, COD
Personal InteractionYesNo (chatbots or emails instead)
ReachLocalGlobal or national
DeliveryImmediateTakes time (shipping)
Business CostHigh (rent, staff, etc.)Lower (website setup, hosting)

πŸ’‘How Electronic-Commerce Business Works

An eCommerce business is running a business selling your products online. You can do so by:

  1. Making a product (like clothes or crafts)
  2. Creating an electronic commerce website
  3. Putting your products on the website
  4. Buyers buy from your website
  5. You deliver the product to them

Or you put your products on an online shopping site like Amazon or Daraz.

Example:

If Sujal makes handmade bags, he can sell them on his website or use Daraz to sell more.

βœ… Electronic-Commerce Benefits

Here are some great things about electronic-commerce:

1. Shop Anytime

You don’t need to wait for stores to open. E-commerce sites are open 24/7!

2. No Travel Needed

You can shop all from your phone or computer β€” even in bed!

3. More Choices

There are thousands of items offered through online stores that you will not find locally.

4. Price Comparison

You have the ability to compare prices across different sellers and get the best deal.

5. Access to More Buyers

For sellers, an eCommerce business allows them to access individuals across the country or the globe.

6. Low Start-Up Cost

No necessity to rent a big store. Simply create an e-commerce website and you are good to go!

❌ E-Commerce Disadvantages

It’s not that great, though! These are a few of the cons of e-commerce:

1. No Touch and Feel

You cannot try out garments or test gadgets before buying.

2. Delivery Takes Time

Unlike shopping malls, you do not get the product immediately.

3. Internet Issues

If there is no internet, you cannot shop or run your store.

4. Scams and Fake Products

Some websites may be fake, or you might be given low-quality items.

5. Returns Can Be A Problem

At times, it’s cumbersome or hard to return something you don’t need.

πŸ”„ E-Commerce vs Electronic-Business

Some people think eletronic-commerce and electronic-business are one and the same. However, they are slightly different:

TermMeaning
E-CommerceBuying and selling online
E-BusinessAll online business work (includes selling, marketing, support)

Thus, e-commerce is a sub-set of e-business.

For example, shipping a product is electronic-commerce. But shipping an email to a client or using software for order processing is e-business.

🌟Why E-Commerce is Growing So Fast (Especially in Nepal)

In Nepal, more and more individuals use the internet and mobile phones. That means:

  • Online shopping is getting simpler
  • Kids are starting eCommerce businesses
  • Platforms like Daraz and Foodmandu are popularizing
  • Delivery services are improving even in small cities

The COVID-19 pandemic also showed people that online shopping is safe and convenient.

πŸ§‘β€πŸ’»Starting Your Own E-Commerce Business

Want to start your own online store? It’s easy:

Here’s a step-by-step plan:

Step 1: What to Sell

Think of something interesting or useful β€” for example, clothes, food, crafts, or gadgets.

Step 2: Build an Electronic Commerce Website

Shopify or WordPress + WooCommerce. Or simply sell on sites like Daraz.

Step 3: Add Products and Info

Add images, prices, and descriptions.

Step 4: Promote Your Store

Use Facebook, TikTok, or Instagram to notify people.

Step 5: Manage Orders

Send the goods, track deliveries, and support customers.

It’s that easy!

πŸ“ŒSummary – Key Differences Between E-Commerce and Traditional Commerce
TopicE-CommerceTraditional Commerce
Where you shopOnline (e-commerce website)Physical stores
TimeAnytime (24/7)Only during business hours
PaymentDigitalCash or card
Location neededNo physical storeNeed shop/space
ReachGlobalLocal
Setup costLowHigh
ExampleAmazon, DarazYour local grocery store

πŸ“ Final Thoughts

Electronic-commerce is changing the manner in which one sells and purchases. It is faster, easier, and more convenient compared to conventional business. Despite its limitations, advantages are significantly higher and make it a great option β€” for new adults and small businesses in Nepal.

Whether you’re ordering your first product online or starting your eCommerce business, know what is conventional vs. eletronic-commerce will place the wisest decisions at your fingertips.

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