In traditional way of doing commerce, most businesses had to compete within a single industry and often within a specific limited geographical area.
The traditional Commerce is based on the following rules.
- It needs to hire sales executive, sales managers, accountants, and other staffs.
- Operates at business hours within a certain period of time.
- Requires location renting/purchasing, staff employment, advertising, inventory shipping and handling all sums up the high-cost equation which makes many people negate from starting a business entirely.
- No sharing of the information with the competitors.
As the internet is breaking all the above boundaries of traditional Marketing. Due to the rapid growth of internet, social networking, nature and structure of competition in traditional way of doing business, e-commerce has been changed dramatically and grown up in past one and half decade. And also rapid change of technology and portable internet accessibility, customer can do shopping online as quickly as possible as he need to purchase. So it is so important to business owners such as retailers, wholesalers, distributers and manufacturer to adopt Ecommerce in their trading to increase their sales and build global trade relationships.
Example: Amazon.com. The company began as an online bookstore but quickly expanded into new products and markets such as music, videos, and home improvement supplies.
The Advantages of E-Commerce over Traditional Retail Marketing
- You have the opportunity to reach a much wider market.
- It’s cost effective.
- You get to provide all the information you want about your products.
- Brand awareness
E-Commerce has important phases explained below:
- It is related with advertising of the products electronically.
- Enabling the customers to browse through the available offers.
- It involves an agreement between the involved parties to continue with the succeeding phases.
- Order is made for the goods after an agreement is concluded
- E-payment systems on the internet are used for receiving payments.