Question

Differentiate between E-Commerce and Traditional commerce. State any five points.

Differentiate between E-Commerce and Traditional Commerce.

Answer 1

Sr. No.	Basis of Distinction	E-Commerce	Traditional commerce
1.	Medium of Transaction	Transactions, orders, and payments are carried out electronically through computer networks and the Internet.	Transactions are conducted physically through face-to-face interactions, over-the-counter dealings, and paper documents.
2.	Geographical Reach	E-commerce has a global reach, allowing buyers and sellers from different parts of the world to conduct business.	Traditional commerce is generally limited to local or regional markets unless the business expands physically.
3.	Time/Availability	E-commerce provides 24×7 access, enabling customers to make purchases at any time.	Traditional commerce is restricted to the working hours of shops and business establishments.
4.	Cost Structure and Intermediaries	It involves lower transaction costs and can reduce or eliminate intermediaries through direct sales.	It usually involves higher distribution and transaction costs, with the presence of intermediaries.
5.	Delivery and Product Types	Digital products such as software and e-books can be delivered online, and documentation can be paperless.	Products are mainly delivered physically, and paperwork and manual documentation are commonly used.
6.	Customer Interaction and Service	It offers personalised services, quick online support, and detailed product information.	It relies on in-person service, offers limited personalisation, and provides slower information updates.