What are the differences between e-commerce and traditional business?

One, the operation of the two processes are different:

1, e-commerce mode of operation: the operation of the e-commerce process, although there are also pre-transaction preparations, trade negotiations, contract signing and implementation, as well as payment of funds and other aspects of the transaction, 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 negotiation, 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.

II. The two involved in the geographical scope and the scope of commodities are different:

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

2. The regional and commodity scope involved in the traditional business model: the traditional business involves a limited range of regions and commodities.

3. Commodity circulation mechanism between the two are different:

1. E-commerce mode of commodity circulation mechanism: the emergence of e-commerce so that each kind of goods have established the most direct circulation channels, so that manufacturers can directly transfer the goods to the user, and from the user to obtain the most valuable information on demand, to achieve the smooth flow of information exchange.

2. The traditional business model of commodity circulation mechanism: the traditional business model of commodity circulation is an "indirect" circulation mechanism. Most of the products produced by manufacturing enterprises have to go through a series of intermediaries to reach the hands of end-users.

Extended information:

Traditional business refers to the process of conducting and managing business transactions through traditional media such as the telephone, fax, and letters. Users can market, advertise, obtain marketing information, receive ordering information, make purchasing decisions, make payments, and provide customer service support through traditional means.

E-commerce is the information network technology as a means to exchange goods as the center of commercial activities. Information technology can also be understood as the Internet, corporate intranet and value-added networks in the form of electronic transactions and related services.

E-commerce refers to the electronic, networked and informationized aspects of traditional business activities. The Internet, as a medium for commercial activities, belongs to the category of e-commerce.

The traditional business model is characterized by many links, high cost, low efficiency, and distance between the two sides.

E-commerce and traditional business involves different geographical scope and range of commodities

The geographical scope and range of commodities involved in traditional business is limited, but with the promotion and popularization of the Internet, especially with the emergence of various professional websites, the geographical scope and time involved in e-commerce is unlimited and beyond time and space.

Reference:

Baidu Encyclopedia-Traditional Business

Baidu Encyclopedia-E-Commerce