Economics

E-commerce versus
Traditional commerce
Trans.601.55
Nguyễn Thế Anh - HE172469
Nguyễn Tùng Dương - HE170397
Bùi Văn Minh - HE170467
 Table of content
I. Definition

II. E-commerce vs Traditional commerce Comparison

III. Pros and cons of E-commerce and Traditional commerce

Definition
 Definition
Traditional Commerce E-Commerce

• Traditional approach • Online shopping

• Buy commodity and services • Buy commodity and services
• Person which involves face to • Their electronic devices
face dealing.
 Traditional Commerce

• Face to face
• 5 senses
• Long-term customer loyalty
Traditional Commerce

• Hefty cost
• Hire staff
• Products in stock
 Traditional Commerce

• Time limit
• Limitation on potential expansion
 E-Commerce

• 25% growth in march 2020

• Relying on E-Commerce
• Decrease costs
• Increase convenience
E-Commerce

• Attract more customers

• Everywhere
• All devices
 E-Commerce

• Higher of product returns

• 30% of online purchases returns
• 8.9% offline purchase returns
E-commerce & Traditional commerce
comparison
 Usage
Traditional Commerce E-Commerce

• Ancient • Save valuable time

• Still in usage • Money
• The digital network
• Not reachable
 Process
Traditional Commerce E-Commerce

• Followed • Easier to use

• Any person • Operate
• Irrespective of education • The customer
• Knowledge • Basic digital gadget knowledge
 Mode
Traditional Commerce E-Commerce

• Any form • Electronic

• Non-electronic • Digital mode
• Manual form
 Time
Traditional Commerce E-Commerce

• Available during the limited • It is available round the clock.

time as prescribed
• The law
• Based on the type of business
 Purchase
Traditional Commerce E-Commerce

• Inspecting a product before • Inspecting a product before

purchasing is possible in a purchasing is not possible in this
traditional commerce business type.
model.
 Involvement
Traditional Commerce E-Commerce

• It involves face-to-face • It involves only digital gadget

involvement of both buyer and engagement to place the order.
seller.
 Business
Traditional Commerce E-Commerce

• It is difficult to perform more • More business can be done

business in this model. easily without any hassles.
 Maintenance
Traditional Commerce E-Commerce

• It is cost effective as display • Easier to maintain this as the

• Showcase of the products only warehouse
• Required to attract the • Enough to store the goods
customers
Pros and cons of E-commerce &
Traditional commerce
 Traditional commerce

Advantages Disadvantages

• Can test • Costs money to build

• Without internet • No have the exact item
• No hackers and scammers
 E-commerce

Advantages Disadvantages

• Availability • Limited customer service

• Speed of access • Limited product experience
• Wide availability • Wait time
• Easy accessibility • Security
• International reach
• Lower cost
• Personalization and product
recommendations
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