Timings: Have Higher Operating Costs Due To Rent, Utilities, and Other Expenses

In today's fast-paced world, businesses have to adapt to changing trends to remain
relevant and competitive. The rise of e-commerce and the internet has
revolutionized the way people conduct business. As a result, traditional businesses
have to contend with e-businesses, which are increasingly becoming popular. In
this presentation, we will explore the differences between traditional business and
e-business.
𝐌𝐨𝐝𝐞 𝐨𝐟 𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧
Traditional businesses operate mainly in physical locations such as stores, offices,

factories, or warehouses. They rely on face-to-face interactions to conduct business
transactions. E-businesses, on the other hand, operate mainly online through
websites, social media, and other digital platforms. They rely on electronic
transactions to sell products or services.
𝐓𝐚𝐫𝐠𝐞𝐭 𝐀𝐮𝐝𝐢𝐞𝐧𝐜𝐞
Traditional businesses are often limited to a local or regional market. They may
find it difficult to expand their customer base beyond their geographical location.
In contrast, e-businesses can reach a global audience. With e-business,
entrepreneurs can access new markets and customers from anywhere in the world,
breaking down geographical barriers.
𝐂𝐨𝐬𝐭𝐬
E-businesses have a lower overhead cost than traditional businesses. E-businesses

do not require physical store or offices, and transactions can be completed
electronically, saving on operational costs such as rent, utilities, and staffing.
On the other hand, Traditional businesses have higher operating costs due to rent,
utilities, and other expenses. , often require a significant upfront investment in terms
of physical space, inventory, and equipment.
Timings: E-businesses can operate 24/7, while traditional businesses may have fixed
operating hours. When it comes to save time and money in this fast life, e commerce
businesses are all time favorites of the people. People can shop in their workplaces by just
going through it and make transactions easily. The services are available 24* 7 and so you
can shop your favourite items even in the odd hours. There are easy returns and exchanges
without any questioning.
Marketing: E-businesses use digital marketing tools, while traditional businesses may use
offline marketing strategies. There is no matter of doubt in the fact that digital businesses need to
have more budget to spend in their marketing programs where in traditional business do have limited
budget and limited options. Marketing programs in digital world include blogs, attention to social
media, content ads etc. Traditional marketers very often take help of this business transformation.
They also have to take care of the other modes of marketing such as newspaper ads and pamphlets.
Payment : E-businesses use online payment methods, while traditional businesses may use
cash, check, or credit card payment methods.
𝐃𝐚𝐭𝐚 𝐂𝐨𝐥𝐥𝐞𝐜𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬
E-businesses have the advantage of being able to collect and analyze large amounts
of data about their customers and their preferences. This information can be used
to improve the customer experience and tailor products and services to meet their
specific needs. Traditional businesses may not have access to this type of data or
may find it difficult to collect and analyze it.
𝐂𝐮𝐬𝐭𝐨𝐦𝐞𝐫 𝐈𝐧𝐭𝐞𝐫𝐚𝐜𝐭𝐢𝐨𝐧
In a traditional business, the interaction between buyers and sellers is direct, i.e.
face to face . Customers can physically interact with products before making a
purchase, which can provide a sense of reassurance and satisfaction. In contrast,
there is indirect customer interaction, it may be possible that the customer is miles
away from where they place an order for the purchase of goods. e-businesses also
struggle to provide this level of reassurance, leading to concerns about product
quality and authenticity.
Human Resources
In E-business, technically qualified and IT professional are needed to run an online

business, whereas Traditional business just need semi-skilled and skill human
resources. They can run the system smoothly.
Shipping and Logistics
The delivery of goods is immediate in traditional business, but in the case of e-
commerce, the goods are delivered at the customer’s place, after some time,
usually within a week.
With a traditional business, even if you sell products, your biggest challenge is in getting items
to your store so you can sell them. But even traditional businesses now feel pressured to sell
their items online, which means they’ll have to line up shipping for that. Still, in a store
environment you’ll have to worry about issues like shoplifting and product damage as
customers come through your business every day.
Online businesses face ongoing challenges related to getting products in the hands of
customers quickly. Competition from big-box retailers like Amazon means it’s no longer
enough to get an item to customers in five days to a week. You’ll also deal with the logistics of
returns, as customers purchase multiple items to try them out, then return them, forcing you to
issue refunds and put items back into inventory.
In conclusion, both traditional business and e-business have their unique

advantages and disadvantages. Traditional businesses have a physical presence that
allows customers to interact with products before making a purchase, while e-
businesses have the advantage of being able to reach a global audience and operate
with lower overhead costs. Choosing the right business model depends on various
factors such as the target audience, the type of product or service offered, and the
entrepreneur's goals and resources. Ultimately, it is up to the entrepreneur to decide
which model best suits their business needs and goals.

Timings: Have Higher Operating Costs Due To Rent, Utilities, and Other Expenses

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Timings: Have Higher Operating Costs Due To Rent, Utilities, and Other Expenses

Uploaded by

Copyright:

Available Formats

In today's fast-paced world, businesses have to adapt to changing trends to remain

Traditional businesses operate mainly in physical locations such as stores, offices,

E-businesses have a lower overhead cost than traditional businesses. E-businesses

𝐃𝐚𝐭𝐚 𝐂𝐨𝐥𝐥𝐞𝐜𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐀𝐧𝐚𝐥𝐲𝐬𝐢𝐬

In E-business, technically qualified and IT professional are needed to run an online

In conclusion, both traditional business and e-business have their unique

You might also like