Comparing traditional and e-business

E-Business vs Traditional Brick & Mortar

In the current world of fast-growing innovative technology, various business elements change rapidly. It is sometimes difficult to keep up with all the new, yet highly impactful technology released over time. Despite the changes within individual technology, there are also changes happening on a bigger scale. The very nature of many businesses has changed with the increasing popularity of E-commerce. E-commerce has allowed businesses to massively improve their lead times. In addition, performance for E-commerce businesses has been achieved at a much better rate than traditional businesses. Due to these results, it is no surprise that many businesses are switching their nature/structure from Traditional business practices to E-commerce practices. Some businesses decide to keep traditional elements within their core structure. However, most companies incorporate E-business practices to at least some degree to gain partial benefits.


According to Kaur (2021), E-business practices relate to businesses that include activities through the Internet. Business activities can consist of (but are not limited to) 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.

Furthermore, In E-Business, cost and time savings can be acquired through a reduction of spending on traveling and selecting the goods. The payments can be made in any form of digital modes such as Credit Card, Debit Card, Digital Wallets or Net Banking.

In E-Commerce, good can be purchased 24/7. This gives customers around the globe a massive advantage as there are no restrictions regarding opening/business hours and time differences. This change alone massively increases a business’ potential customer pool which in turn results in many traditional businesses incorporating this aspect of E-business.

E-Commerce provides greater benefits in buying goods and services easily (Thakur, 2021).

Traditional Business

Traditional business mostly refers to a physical instance (e.g. shops/stores) that provide a certain good/service to its local customers in exchange for the corresponding currency. A Traditional Business’ main method of payment is Cash.

Operating costs are usually rather high as it takes a high amount of investment to keep a physical place running correctly. E-Businesses do not need to hold a physical unit which in turn gives them freedom (Kaur, 2021).

Furthermore, Traditional Commerce started at the time of the barter system which was introduced a long time ago. This system basically covers the essential supply and demand principle. The exchange of goods for other goods without the introduction of money (as this was not introduced yet in the early times). Nowadays, Traditional Business has advanced to a more modern model with the element of cash and physical instances being more flashed out. The Introduction of E-Commerce in the early 20th century really decreased the popularity of Traditional Businesses and brick-and-mortar stores (Thakur, 2021).

Benefit E-Business

As mentioned before, the introduction of E-Businesses has forced many companies to change their core business model due to the immense benefits yielded when doing so. Please see the list below that further elaborates on these benefits. The main 3 benefits are mentioned below (Faris, 2019).

Decreased startup costs

Starting a new business often comes with high initial investment costs. This is especially true when starting a brick-and-mortar retail store. Think about money needed for furniture/displays/thematic elements/personnel/customer care/office space etc. If your business is starting to gain traction, you also need to think about upgrading and including a conference room.

An E-business does not have to worry about any of these mentioned costs if it so desires. People can start E-businesses from anywhere they would like to, so to speak. The necessary requirement of a website is an investment, but a much lower investment compared to a Traditional Business. Shipping and warehousing are also part of your main initial investment as the network needs to be robust when starting to avoid initial complications such as delays.


If you have a Traditional Business, there is a lot more staff required when wanting to manage your business effectively. You need people for HR/administrative reasons, logistical reasoning, customer services etc. E-businesses need one/a few people to start out merely for managing orders as much can be done online. Startups often outsource their whole supply chain/operating channel to other companies that manage Ecommerce Fulfillment from start to finish. This gives E-Businesses immense leeway regarding resource management.

Shipping and Logistics

Shipping and Logistical operations are and remain a challenge for both Traditional Businesses and E-Businesses. The key difference is that E-Businesses gain the advantage of clarity by being able to manage and overview all the step-by-step operations online. This can often reduce lead times by a significant amount.

Return Logistics are also much easier to manage as products can be always tracked through a top-down view. SME’s (Small/Medium Enterprises) that conduct E-business also outsource their Shipping and Logistics to professional third-party industry experts. These experts often handle the whole Fulfillment process very efficiently.

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