Difference Between e-Business & Traditional Business

There has been a paradigm shift in the shopper in me from a conventional storefront to ordering a product from halfway around the world online with just a few clicks. E-business and traditional business are the two ways of conducting business with a unique character of their own. While the rise of e-business has created a fascinating dichotomy with traditional practices, some of us still prefer a personal touch, especially when buying for a large occasion. Let us find out what’s behind this evolving clash between the models and understand what each model can teach us about the future of commerce.

What is e-business?

Business activities conducted over the Internet or any other computer network are called e-business or electronic business. It includes business activities like trade, commerce, and industry conducted electronically. E-business is all about using the internet and other computer networks and technologies that provide superior customer service, increase sales, and reduce costs significantly. To conduct e-business, computer networks that are more secure, effective, and efficient are often used.

What is traditional business?

Traditional businesses have been the foundation of numerous industries and is usually a typical brick and mortar establishment with a strong supply chain and age-old customer relationships. In a traditional business, the offers of products or services are led through a local shop, store etc. to the local customers. One needs to visit the store physically for the touch and feel experience. A traditional business model involves huge costs for infrastructure and hiring of staff for smooth operations. Other important components include a hierarchy of command, clear roles and responsibilities, and predefined processes. Traditional businesses offer stability and a proven track record.

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

e-Business vs Traditional Business

If you are planning a business you may debate on whether to launch a traditional business or an e-business as both have unique offers and challenges. Thriving on technology providing global reach 24/7 and low operation cost could be the model for a business venture but you may also want the advantage of a traditional excellence for your business with robust personal relationships and a dazzling physical presence fostering trust and loyalty. Ultimately the determinant is the nature of the product or service and the objective of your business.

One would like the best of both worlds – leveraging the technological edge of e-business while preserving the personal touch of traditional business. The choice is yours.

FAQs

Q1. Is e-business more profitable than traditional business?

Ans. The cost of setting up an e-business is low as there is no requirement for physical facilities. The cost of setting up a traditional business is high as there is a requirement for physical facilities.

Q2. What is the impact of e-business on the traditional business?

Ans. E-commerce can impact traditional businesses by:

• dropping people's interest in shopping at traditional markets
• increasing people's consumptive behavior
• increasing market access for traditional businesses
• increasing the ability of traditional businesses to adapt to technology

Q3. Why would you prefer e-business over traditional business?

Ans. An e-commerce website needs a low investment as compared to a physical store. Hence, these reduced costs could be passed on to customers at discounted prices. You cut down the prices for your e-commerce website by using of best marketing strategies like organic search, social media traffic, or social media traffic

Q4. What is traditional business strategy?

Ans. A Traditional Business Model is a system referring to how a company operates and conducts business activities with its customers. It includes the design of value creation, delivery, and revenue generation mechanisms within an organisation.