Comparison of the differences between e-commerce and traditional commerce

Traditional business is that users can use telephone, fax, letter and traditional media to realize business transactions and management process. E-commerce refers to the information network technology as a means to exchange goods as the center of business activities. So what is the difference between e-commerce and traditional business? Here I give you the relevant knowledge of e-commerce and traditional business, welcome to read!

Comparison of e-commerce and traditional business

Difference between e-commerce and traditional business: the process of operation of the two are different

The traditional business process of the transaction process of the practical operation by the pre-transaction preparations, trade negotiations, contracts and implementation, payment and liquidation of the components. 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, it began to enter the specific transaction negotiation process, the transaction negotiation is actually the two sides of the transaction to conduct oral consultations or written documents transfer process. Written documents include quotations, purchase contracts, delivery notes, transportation orders, invoices, receipt and inspection forms, and so on. Contract and implementation process, in the traditional business activities, the transaction negotiation process is often completed through oral agreement, but after the negotiation, the two parties must be in writing to sign a legally binding trade contract. Finally, the payment process, the traditional business activities of the payment generally have check and cash two ways, check way more used in the business transaction process.

Although the process of e-commerce is also characterized by pre-transaction preparation, trade negotiation, contract signing and execution, and payment of funds, the specific methods of operation used in the transaction are completely different. In the e-commerce mode, pre-transaction preparation, supply and demand information are generally obtained through the network, so that the communication of information between the two sides is characterized by rapidity and high efficiency: trade negotiation, the negotiation process between the two sides in e-commerce is the transformation of paper documents into electronic documents and the realization of the transmission on the network; contract signing and execution, the e-commerce environment, the network protocols and the functions of e-commerce application systems ensure that all the parties to the transaction are able to communicate with each other. Contract signing and execution, e-commerce environment of network protocols and e-commerce applications, the function of the system to ensure that all transactions between the two sides of the negotiation of the correctness and reliability of the documents, and in the case of third-party authorization has the legal effect, can be used as a basis for arbitration of the implementation of the process of disputes; the payment of funds, e-commerce transactions in the payment of funds is generally taken online payment method.

Difference between e-commerce and traditional business: in traditional business, the manufacturer is the center of business, while in the e-commerce environment, the seller is the main body of the business

In traditional business, the manufacturer is responsible for organizing the market research, the development of new products and research, and finally by the manufacturer is responsible for organizing the sale of products. So it can be said that all activities are inseparable from the manufacturer. However, in the e-commerce environment, it is the seller who is responsible for the sales process, including the establishment and management of the product website, the design and updating of the web content, the design, organization and management of all the business and after-sales service of the online sales, etc., and the manufacturer is no longer playing a leading role.

Difference between e-commerce and traditional business: E-commerce and traditional business have different mechanisms for transferring goods

Traditional business is a kind of transferring goods.

Traditional commerce, the flow of goods is a kind of indirect? The majority of the goods produced by the manufacturing enterprises have gone through a series of intermediaries to reach the hands of the end user. This flow mechanism invariably adds many unnecessary links to the flow of goods, but also increases the corresponding circulation, transportation, storage costs, plus each intermediary to obtain their own profits, which results in the factory price of goods and the retail price of a large price difference. In this regard, some manufacturing enterprises have adopted the direct sales method (the goods directly to the shopping malls on the counter sales), this flow of ways, so that the price of goods has been reduced by the popularity of consumers. However, this approach does not give the production enterprise to bring greater profits, because the direct sales approach requires manufacturers to have many sales staff often traveled between the various markets.

The emergence of e-commerce makes it possible to establish the most direct flow channels for each kind of commodity, and manufacturers can deliver goods directly to users, but also get the most valuable information from users about their needs, and realize the exchange of information without obstacles.

Difference between e-commerce and traditional business: e-commerce and traditional business involved in the geographical scope and range of commodities is different

Traditional business involved in the geographical scope and range of commodities is limited, but with the promotion and popularization of the Internet, in particular the emergence of various types of professional Web sites, e-commerce involves a geographic scope and time is unlimited. and time is unlimited, is beyond time and space.

Through the above, it is not difficult to see that between traditional business and e-commerce, there are **** the same point, there are also differences, the relationship between the two are mainly manifested in the following aspects.

1) E-commerce logistics system can be built on the basis of traditional business logistics system, which will give full play to the utilization of logistics resources.

2) The customers of e-commerce may be the customers of traditional business, in a sense, e-commerce is the development of traditional business.

3) Many of the activities of e-commerce can be operated in the same way as in traditional business, and they can be improved and extended so that they can be adapted to the new business conditions. Finally, the existing sales channels and information networks of traditional business can also be used for e-commerce.

Comparison of the advantages of e-commerce and traditional business

Abstract: E-commerce is a modern business model based on the development of the Internet. It is a network as a carrier, customer-centric, with the help of information technology and electronic means to engage in business activities. And compared with traditional business, it can significantly improve business efficiency, reduce costs, and enhance customer satisfaction; but there is also a lack of credit, fraud, false advertising, technical standards are not standardized and other issues, which puts forward corresponding countermeasures to solve.

Keywords: e-commerce, traditional business, features, advantages

Today's global economy, society is moving forward at a rate never before seen in human history, the driving force behind this high-speed development is the Internet Internet, which has led to the emergence and development of the human economy, society, a new revolution, which has dramatically changed the way in which business transactions are carried out between organizations and between organizations and their users. This revolution has dramatically changed the way organizations conduct business with each other and with their users. The geographical boundaries of goods and services have been broken down, and companies of all sizes are busy building new business solutions to adapt to the new ways of trading. Due to the inherent characteristics of the Internet, such as easy access, real-time information, low cost and other advantages that make it an essential driver of business solutions, online transactions through the Internet has become the trend of the times, the traditional mode of business and business concepts have undergone fundamental changes. E-commerce as a business model of the information age is moving forward at a faster rate than people expected, which marks the arrival of the network economy era.

I. Introduction to e-commerce

In the era of the world's booming economy, with the continuous development of the Internet, e-commerce is also rapidly rising. E-commerce: literally, is the use of advanced electronic technology to engage in a variety of commercial activities. In essence, it should be a complete set of network business operations and management information systems. To be more specific, it is the use of existing computer hardware equipment, software and network infrastructure, through certain protocols connected to the electronic network environment for a variety of business activities.

E-commerce is an emerging, in the process of development of modern business methods, from 95 years has been the rapid development of a huge modern business value. 1997 Europe, the United States, Singapore and many other governments published the e-commerce development program, which is designed to guide the global e-commerce free competition and healthy development, and vigorously promote the practice of e-commerce. The development outline of our government will also be issued in the near future to promote our enterprises to adapt to internationalization and participate in international competition. It is reasonable to believe that in the 21st century, e-commerce will gradually become the main way of social life and the basis of the digital society.

E-commerce has also completely changed the way we do business today. With no time and space constraints, people can take care of business from the comfort of their homes. Small companies can also realize global online ordering and complete worldwide business activities. More and more electronic money (credit cards, digital cash, etc.) online payment methods are used in electronic transactions, and people are no longer restricted to carrying and using physical cash. Companies, stores, banks will not be the number of staff, branches, the number of size to distinguish between large and small, instead of turnover, information exchange, how much to arrange the economic seat. E-commerce will grow at a tremendous rate and will have a huge impact on the financial sector. The economic and financial state of the world will also be profoundly affected. The spatial and geographical breakthroughs in information exchange and digitized electronic money will promote economic development, but will also bring difficulties in economic and financial management. All countries need to formulate relevant laws and regulations to regulate the market; combined with technical security controls to ensure the healthy development of this emerging business methods and markets.

II. Comparative analysis of e-commerce and traditional business

(a), the characteristics of e-commerce

1. e-commerce will be the traditional business process of virtualization, digitization; e-commerce, the economic environment of the virtual nature of the network generated by the virtual nature of the transfer to the online to operate the economy are virtual economy. It is with the physical space outside the network in the real economy coexist, and promote. Digital products have the law of increasing returns, so that the network economy in the expansion of the cost of close to zero, the supply increases, the price falls, the utility of information products of increasing characteristics lead to a sustained growth in demand.

2. E-commerce has the characteristics of openness and globalization, for enterprises to create more trade opportunities; in the underground space, the Internet can be global information dissemination, global business activities to reduce the geographic location of the obstacles to the limitations; in the information resources on the Internet system due to the nearly unlimited information storage space can be easily retrieved and quickly transmitted, so that the economic ties between the different geographic areas The Internet system can easily retrieve and rapidly transmit information because of its nearly unlimited storage space, thus making economic ties between different regions more convenient.

E-commerce has redefined the traditional circulation model, reducing intermediate links, making it possible for direct transactions between producers and consumers, and thus changing the way the entire social economy operates to a certain extent.

3. E-commerce makes it possible for enterprises to enter the global electronic marketplace at a similar cost, making it possible for small and medium-sized enterprises (SMEs) to have the same information resources as those of large corporations, and improving the competitiveness of SMEs.

4. Automation and Intelligence; automation has led to increased productivity in magnitude, new forms of value creation, coordinated division of labor, new products and new markets. Economic development is no longer based on physical strength but on knowledge and information; wealth is redefined as the amount of information, knowledge and intelligence possessed; intelligent tools will increasingly dominate society; the content of knowledge in traditional products is increasing. Production, exchange and distribution of various economic activities is to benefit from intelligent.