The Difference Between E-Business and Traditional Business
Venue: Employment & Employability Institute, e2i
Evolving from Traditional to E-commerce Businesses
To face the new economic environment, it will be a good opportunity for you to learn the difference between e-business and traditional business, and how E-commerce can help your business from your traditional business.
The complimentary seminar Evolving from Traditional to E-Commerce Business will have certified trainers from Alibaba.com, Steven Zheng and Peter Feng to be here to share with Singapore SMEs on knowledge of evolving traditional business using e-commerce model, understand the fundamentals of Ecommerce and gain deeper insights on the latest e-commerce developments in the region. You may also get many opportunities by networking with potential business partners.
Let’s take a look at the difference between e-business and traditional business. E-business is a new way of doing business that is simple to set up. It is created via the internet by creating a website. Traditional business, on the other hand, is difficult to establish, and it is a local store that involves transactions involving the purchasing and selling of goods and services. This form of business caters to the needs of its local clients.
4 Difference Between E-Business And Traditional Business
- Operating Cost
E-business has lower operating costs because all activities are conducted online. Traditional businesses have substantial operational costs. This is because, in order to run a traditional business, you will need a physical store, which will incur renting and utility costs, reducing the percentage of your revenues.
- Hiring and Managing Employees
A traditional business will require at least part of its staff to be present to engage with clients. If you own a store, you must have at least one person on-site during business hours, plus someone to replace that person for toilet and lunch breaks. If you run a service-based operation, you can still hire freelancers and employees who work from home, but you’ll need to have your office manned at all times.
An e-business has more flexibility in terms of staffing. 3rd party services that handle anything from production to logistics to human resources can help small businesses get a long way these days. You can also employ a call centre to collect phone orders or address customer service issues. This helps you cut costs on salaries, but you must crunch the figures to determine which method is most cost-efficient.
- Operating Hours
If your customers want to buy your products at your physical location they can only do it during your set business hours. But if you were to list your products digitally, they will be accessible to your clients 24/7. Customers are always active in an e-commerce marketplace; they are more likely to return for recurrent purchases online due to the conveniences they receive. These benefits include free shipping (typically with a minimum cart value), expedited order delivery, specials and discounts, and subscription benefits. Positive comments result in two additional e-commerce benefits. One is that the quantity of favourable reviews influences buyers’ faith in your store. The other advantage is that it can assist you in identifying your best-selling items.
- Breaking Geographical Barriers
One of the difference between e-business and traditional business is that, when you establish a traditional business, your target market is only limited to the people within a restricted radius within the area. Though you can have your products delivered to customers’ homes there may be distance restrictions. Whereas, when you publish your products on an e-commerce platform, your market becomes wider. Since most eCommerce have their own logistics and delivery systems it makes it easier for you to send your products beyond your usual radius.
ECommerce acts as a leverage for businesses to reach out to more customers and expand their target market. This can help sellers who need to broaden their reach in order to target new consumers. This is true for both online-only businesses and those who have a physical store. This will also allow potential customers to purchase from you from any place at any time. Furthermore, this also helps you get the attention of potential customers from other parts of the world.
Thus, the clear difference between e-business and traditional business is that e-business is a new style of doing business that is simple to establish. It is created via the internet by creating a website or listing your products on eCommerce platforms like Alibaba.com. Traditional business, on the other hand, is difficult to establish, and it is a local store that involves transactions involving the buying and selling of goods and services.