What is the difference between e-commerce and traditional business model

E-commerce and traditional business model has three different points:

One, the operation of the two processes are different:

1, the e-commerce model of the operation of the process: the operation of e-commerce process, although there is also the preparation of the transaction, the trade negotiations, the signing of the contract and the implementation of the funds and other parts of the payment, but the transaction of the specific use of the operation method is completely different. In the mode of e-commerce, the pre-transaction preparation, trade supply and demand information is generally obtained through the network, so that the two sides of the communication of information with rapid and efficient characteristics.

Transaction negotiation, e-commerce, the two sides of the negotiation process is the written documents into electronic documents and the realization of the transmission of the network; contract signing and implementation of the e-commerce environment of the network protocols and e-commerce applications to ensure that the two sides of the transaction negotiation of the correctness and reliability of all the documents.

And in the case of third-party authorization has the legal effect, can be used as in the implementation of the process of disputes arising from the basis of arbitration; the payment of funds, e-commerce transactions in the payment of funds generally take the online payment method.

2, the traditional business model of the operation process: the traditional business of the transaction process of the practical operation by the pre-transaction preparation, trade negotiation, contract and implementation, payment and clearing and other aspects of the composition. One of the pre-transaction preparation is that both sides of the transaction are aware of the supply and demand information about the product or service, then start to enter the specific transaction negotiation process, the transaction negotiation is actually the two sides of the transaction for verbal negotiation or the transmission process of written documents.

Written documents, including quotations, ordering contracts, delivery notes, transportation orders, invoices, acceptance of the single and so on. Contract and implementation process, in the traditional business activities, the transaction negotiation process is often completed through the oral agreement, but after the consultation, the two sides of the transaction must be in writing to sign a trade contract with legal effect.

Finally, the payment process, the traditional business activities of the payment generally have a check and cash in two ways, the check method is mostly used in the business transaction process.

Two, the two involved in the scope of the geographical area and the scope of goods is different:

1, e-commerce mode involved in the geographical area and the scope of goods: e-commerce involved in the geographic area and time is unlimited, is beyond space and time.

2, the traditional business model involved in the geographical scope and scope of goods: traditional business involved in the geographical scope and scope of goods is limited.

Three, the two commodity flow mechanism is different:

1, the e-commerce mode of commodity flow mechanism: the emergence of e-commerce makes every kind of commodity can establish the most direct flow channels, manufacturers can send the goods directly to the user, but also from the user to get the most valuable demand for information, to achieve the exchange of information without hindrance.

2, the traditional business model of the commodity flow mechanism: traditional business under the flow of goods is an "indirect" flow mechanism. Most of the goods produced by manufacturing enterprises have gone through a series of intermediaries before reaching the hands of end-users.

Baidu Encyclopedia - E-Commerce

Baidu Encyclopedia - Traditional Business