What is traditional business?

Traditional business means that users can use telephone, fax, letters and traditional media to realize business transactions and management processes. Users can conduct marketing, advertising, obtain marketing information, receive order information, make purchase decisions, pay money, customer service support and so on through traditional means. This method has the characteristics of many links, high cost, low efficiency and long distance between the two sides.

E-commerce combines the transmission modes of logistics, capital flow and information flow in traditional business activities with network technology. Enterprises directly connect important information with customers, employees, distributors and suppliers distributed all over the world through the global information network (www), intranet or extranet, creating more competitive business advantages.

Extended data:

The traditional business transaction process is the actual operation steps and treatment process of the enterprise in the specific business transaction process, which consists of pre-transaction preparation, transaction negotiation, contract and execution, payment and liquidation.

1. Preparation before the transaction: For the process of commercial transaction, preparation before the transaction is the process of how the supply and demand sides publicize or obtain effective commodity information. The marketing strategy of commodity suppliers is to publicize their commodity information through newspapers, television, outdoor media and other advertising forms.

For demanders, enterprises and consumers, they should get the information they need as much as possible and enrich their purchasing channels. Therefore, the preparation before the transaction is actually a process of publishing, querying and matching commodity information.

2. Trade negotiation process: After the supply and demand sides of commodities know the supply and demand information of commodities, they begin to enter the specific trade negotiation process. Trade negotiation is actually a process of oral negotiation or transmission of paper trade documents between the two parties.

Paper trade includes inquiry, price negotiation, order contract, delivery, transportation, invoices, receipts, etc. All kinds of paper trade documents reflect the price intention, marketing strategy management requirements and detailed commodity supply and demand information of both parties to the transaction.

In the process of trade negotiation in traditional business activities, the tools used are telephone, fax or mail. Because fax is not enough as the basis for court arbitration, all kinds of formal trade documents are mainly delivered by mail.

3. Contract and execution: In traditional business activities, the process of trade negotiation is often completed by oral agreement. However, after the negotiation process is completed, both parties to the transaction must sign a legally binding business contract in written form, determine the negotiation result and supervise the implementation. If there is any dispute, the contract shall be arbitrated by the corresponding institution.

4. Payment process: In traditional business, there are generally two payment methods: check and cash. Checks are mainly used for business processes between enterprises, and check payment involves both units and banks. In the process of selling goods to individual consumers, enterprises often use the cash method.

Baidu encyclopedia-traditional business