The difference between e-business and traditional business is related to the formation. E-business is the emerging mode of doing business and very easy to form. It is formed through the internet by making the website Whereas traditional business is difficult to form and it is a local store which includes the transactions related to buying and selling of goods and services. This type of business meets the requirement of its local customers.
Meaning of E-Business:
E-business refers to that business which includes activities through the Internet. Business activities consist of industry, commerce and business. E-business also includes planning, organising, production, marketing etc. through the internet. Most of the people and business parties doing their activities electronically. These are the emerging modes of business.
There are various benefits related to the e-business which are as follows:
1. Easy: E-business makes everything easy. Shopping can be done easily without going anywhere, with the help of internet and online websites.
2. Fast: Information exchanged in a few seconds with the help of internet. Buying and selling can be done with a click of a mouse.
3. Paperless Society: With the help of online mode, many business transactions started electronically instead of paperwork. Nowadays people use online mode for doing their work as payment of income tax or apply for any job, apply for a passport online etc.
Meaning of Traditional business
Traditional business is a local store or a shop which provides the goods and services to its local customers. This business directly deals with cash. the operating cost is high because this type of business needs to form its physical places like a shop and its arrangement and placement of products.
In this, customers have to visit the shop and then they can buy the products.
The Chart of difference between E-business and Traditional business
Points of differences
|Meaning||It means electronic business. It also refers to the activities through the internet.||It refers to the local store which provides the products and services to the local customers.|
|Cost||There is very less cost to start an electronic business.||Traditional business having a high cost for start-up and other activities.|
|Operating cost||Operating cost is less in e-business because all the activities are through online mode.||In traditional business, operating cost is high.|
|Physical examination||In e-business, no physical examination of goods is required.||This business includes all those activities which are related to the local market, so physical examination is possible in this case.|
|Distribution||As an online business, there is no channel of distribution because all the transactions are through the internet.||In this business, various intermediaries are involved such as wholesaler, retailer, sale agents etc.|
|Risk||High risk is involved in the electronic business as there is no personal or direct contact between the parties.||As all parties are connected and having personal interaction so there is very less chance of risk related to misconduct.|
|Human Resources||Technically qualified and IT professionals are needed to run an online business.||Semi-skilled and skilled human resources can run traditional business smoothly.|
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Thus, E-business is the emerging mode of doing business and very easy to form. It is formed through the internet by making the website. Whereas traditional business is difficult to form and it is a local store which includes the transactions related to buying and selling of goods and services.
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