TRADITIONAL

COMMERCE VS
E- COMMERCE
BY – Nalin Naugain
02814901823
BBA (B&I) (M) 2nd Sem
What is ecommerce?
 E COMMERCE (ELECTRONIC COMMERCE) IS THE BUYING
AND SELLING OF GOODS AND SERVICES OR THE
TRANSMITTING OF FUNDS OR DATA, OVER AN
ELECTRONIC NETWORK, PRIMARILY INTERNET

 THESE BUSINESS TRACTIONS CAN OCCUR IN –

B2B
B2C
C2C
Process of e-commerce
 THE CONSUMER BROWSES THE CATALOG OF PRODUCTS FEATURED ON
THE SITE AND SELECTS ITEMS TO PURCHASES. THE SELECTED ITEMS
ARE PLACED IN ELECTRONIC EQUIVALENT OF A SHOPPING CART &
PROVIDES A BILL AND SHIP TO ADDRESS FOR PURCHASE AND DELIVERY
Traditional commerce
 TRADITIONAL COMMERCE REFERS TO PRACTICE OF SELLING
PRODUCTS AND SERVICES WITHIN A SINGLE INDUSTRY AND
IN SOME CASE, WITHIN A SPECIFIC GEOGRAPHICAL AREA.
Difference between E commerce
and traditional commerce
  Reach in traditional commerce
In traditional commerce only you are restricted
to people who actually come to your shop

 Reach in E-Commerce
Wide range of customer we can reach as compare
to traditional commerce.
Problems faced by traditional commerce
businesses nowadays
 Consumers are the new POS, not the stores!
Consumers today quite literally have become the POS! Consumers have moved way
beyond the notion of omni channel as shopping. They now decide, when and where
to purchase, how to pay, and when/where/how to take delivery. The shopper's
smartphone has literally become their point of sale. Traditional retailer systems
were designed to transact in store and separately online, but not across multiple
channels at different points in time when the consumer choses to buy.
 Traditional retailers sell "things" with few ways to manage relationships
The most important "sale" today is not the product in the basket, but the
relationship with the consumer. Amazon can provide an entire history of "wish lists,"
purchases and shipment history. Few traditional retailers have the capacity to
"follow you home from the store." The lack of consumer-centric CRM (Customer
Relationship Management) is one of the single biggest omnichannel gaps and
perhaps one of the biggest challenges for traditional retailers today.
 Digital consumption of everything has resulted in
declining store traffic
If you look across the spectrum of media, that has been a
massive migration to digital. Movies, music, news, and
even software has been become available both as digital
downloads and streaming. This has disintermediated
some media retailers like Blockbuster entirely. Digital
consumption, coupled with online digital shopping, has
significantly reduced store visits. "Footfalls" in store have
literally dropped by as much as half. Stores simply have
less "at bats" to sell customers something. And, even if
retailers dramatically improve store conversion rates, it
will not be enough to make up for the considerable
decline in store traffic.