What's the difference between e-commerce and traditional commerce?

First, the operation process of the two is different:

1. Operation flow of e-commerce mode: Although the operation flow of e-commerce also includes preparation before transaction, trade negotiation, signing and execution of contract, and payment of funds, the specific operation methods used in transaction are completely different. In the e-commerce mode, the preparation before the transaction and the supply and demand information of the transaction are generally obtained through the network, so the communication between the two parties is fast and efficient.

Transaction negotiation, the negotiation process of both parties in e-commerce is to turn written documents into electronic documents and realize transmission on the network; The signing and execution of the contract, the network protocol under the e-commerce environment and the functions of the e-commerce application system ensure the correctness and reliability of all the transaction negotiation documents of both parties.

And it has legal effect under the authorization of a third party, which can be used as the arbitration basis for disputes arising in the implementation process; Payment of funds, payment of funds in e-commerce transactions generally takes the form of online payment.

2. Operation process of traditional business model: The actual operation in traditional business transaction process consists of pre-transaction preparation, transaction negotiation, contract and execution, payment and liquidation. Among them, the preparation before the transaction means that both parties to the transaction begin to enter the specific transaction negotiation process after they know the supply and demand information about products or services. Transaction negotiation is actually a process of oral negotiation or transmission of written documents by both parties.

Written documents include inquiry forms, order contracts, invoices, transport bills, invoices, acceptance certificates, etc. Contract and execution process, in traditional business activities, the process of transaction negotiation is often completed by oral agreement, but after the negotiation, both parties to the transaction must sign a legally binding business contract in writing.

Finally, the payment process, traditional business activities generally have two payment methods: check and cash, and check is mostly used in the transaction process of enterprises.

2. The geographical scope and commodity scope involved are different:

1. Geographical scope and commodity scope involved in e-commerce model: The geographical scope and time involved in e-commerce are infinite and transcend time and space.

2. Traditional business model involves regions and commodity scope: traditional business involves limited regions and commodity scope.

3. The commodity circulation mechanism between them is different:

1. Commodity circulation mechanism of e-commerce mode: The emergence of e-commerce has established the most direct circulation channel for each commodity, enabling manufacturers to directly deliver the goods to users, and obtain the most valuable demand information from users to realize the smooth exchange of information.

2. Commodity circulation mechanism under traditional business model: Commodity circulation under traditional business model is an "indirect" circulation mechanism. Most products produced by manufacturing enterprises have to go through a series of middlemen to reach the end users.

Extended data:

Traditional business refers to the process of business transaction and management through traditional media such as telephone, fax and letter. Users can market, advertise, obtain marketing information, receive ordering information, make purchase decisions, pay and provide customer service support through traditional methods.

E-commerce is a commercial activity with information network technology as the means and commodity exchange as the center. Information technology can also be understood as transactions and related services conducted in the form of electronic transactions on the Internet, Intranet and value-added networks.

E-commerce refers to the electronization, networking and informatization of all aspects of traditional business activities. As a medium of business activities, Internet belongs to the category of e-commerce.

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

E-commerce and traditional commerce involve different geographical scope and commodity scope.

The geographical scope and commodity scope involved in traditional commerce are limited, but with the popularity of the Internet, especially the emergence of various professional websites, the geographical scope and time involved in e-commerce are infinite and transcend time and space.

References:

Baidu encyclopedia-traditional business

Baidu encyclopedia-e-commerce