The difference between e-commerce and traditional commerce

E-commerce has greatly improved the benefits and efficiency of traditional business activities. Compared with traditional business systems, e-commerce on the Internet has its unique advantages, including:

1. Brand-new advantages in time and space

Traditional business is a store-style sales characterized by a fixed sales place (that is, a store) and a fixed sales time. Online sales are carried out through online stores characterized by information base, so its sales space extends with the extension of network system. There is no geographical barrier, and its retail time is determined by consumers, that is, online users themselves. Therefore, compared with the traditional sales model, Internet sales has a brand-new time and space advantage, which can meet the consumption needs of online users to a greater extent. In fact, online shopping has no national boundaries and there is no difference between day and night.

2. Reduce dependence on materials and fully display the advantages of products and services.

The business activities of traditional enterprises must have a certain material foundation to carry out business activities, while virtual enterprises can be established through the Internet, such as online stores and online banks, and basically do not need a lot of physical infrastructure. Enterprises can also transfer the saved funds to consumers, which is why the famous online bookstore Amazon can provide consumers with preferential discounts that traditional bookstores cannot provide.

At the same time, online sales can use the performance of network multimedia to display the internal structure of products and services in an all-round way, thus helping consumers to fully understand the goods or services before buying. Although traditional sales can show real goods to customers in shops, for ordinary customers, their understanding of the goods they buy is often superficial, they can't understand the internal quality of the goods, and they are often easily confused by external factors such as the appearance and packaging of the goods. Theoretically speaking, consumers' rational purchase not only improves the consumption utility, but also saves social resources.

3. Reduce inventory and reduce transaction costs.

In order to meet the unpredictable market demand, enterprises have to keep a certain inventory of products and raw materials. The basic reason of inventory is poor information, and e-commerce based on information technology can solve the problem of inaccurate and untimely information in enterprise decision-making. Through the internet, the market demand information is transmitted to enterprises for decision-making and production, and at the same time, the demand information of enterprises is immediately transmitted to suppliers for timely replenishment, thus realizing zero inventory management. At the same time, enterprises can improve marketing efficiency and reduce promotion costs through online marketing activities. According to statistics, advertising on the Internet can increase sales by 10 times, but its cost is110 of traditional advertising. Moreover, e-commerce can reduce procurement costs, because with the help of the Internet, enterprises can seek the best suppliers in the global market and reduce intermediate links. Some data show that the use of EDI can usually save 5% ~ 65% of the procurement cost for enterprises.

4. Close user relationship and deepen the advantages of user understanding.

Because of the real-time interactive communication on the Internet, consumers of products or services are more likely to express their evaluation of products or services without any external interference. On the one hand, this evaluation enables online retailers to have a deeper understanding of users' internal needs. On the other hand, the instant interaction between retailers promotes the close relationship between them.

5. Advantages of reducing intermediate links and transaction costs.

E-commerce redefines the traditional circulation mode, reduces intermediate links, and makes direct transactions between producers and consumers possible, thus changing the whole social and economic operation mode to some extent.

E-commerce provides a virtual global trading environment for enterprises, which greatly improves the level of business activities and service quality. The advantages of new business communication channels are obvious, including:

(1) greatly improves the communication speed, especially in the international scope.

(2) It saves potential expenses, such as e-mail saving communication postage, while electronic data exchange greatly saves management and personnel costs.

(3) Increase the contact between customers and suppliers. For example, the website of e-commerce system enables customers and suppliers to know each other's latest data, while electronic data interchange (EDI) means that cooperation between enterprises has been strengthened.

(4) Improve the service quality, which can provide information of enterprises and their products and services required by customers quickly and conveniently.

(5) Provide interactive sales channels. So that businesses can get market feedback in time and improve their work.

(6) Provide all-weather service, that is, 24 hours a day, 365 days a year.

(7) The most important point is that e-commerce has enhanced the competitiveness of enterprises.

It is precisely because of these characteristics and advantages that e-commerce has wide application value and prosperous development prospects.