Weighing the Differences Between eCommerce and Traditional Commerce

Due to the increased popularity and availability of Internet access many traditional small business are considering eCommerce as a valid and profitable sales channel. However, eCommerce and traditional commerce are very different, and it’s important to weight carefully the differences between eCommerce and traditional commerce in order to decide if it would be a good fit for your business or just a costly mistake.

Direct Interaction

Traditional commerce is often based around face to face interaction. The customer has a chance to ask questions and the sales staff can work with them to ensure a satisfactory transaction. Often this gives sales staff an opportunity for upselling, or encourage the client to buy a more expensive item or related items, increasing the shop profits. On the other hand, eCommerce doesn’t offer this benefit unless features such as related items or live chats are implemented.

Lower Costs

eCommerce is usually much cheaper than maintaining a physical store in an equally popular location. Compared with costs such as commercial space rent, opening an online store can be done at a fraction of the price for less than $50 per month. This can prove invaluable for small business owners who don’t have the startup capital to rent prime retail space and staff it to be able to sell their goods.

Reach

With an online shop you can do business with anybody living on a country you are able and willing to send mail to, unlike traditional commerce where you are restricted to people who actually come to your shop. This also opens the door to many other forms of marketing that can be done entirely online, which often results in a much larger volume of sales and even foot traffic to the store. An online store has no capability limits, and you can have as many clients as your stock can serve.

Returns Rate

In a traditional store, the customer will be purchasing the product in person, which has some benefits for both the him and the store. The customer will be able to touch and check the items, to make sure they are suitable, and even try them on, which reduces the number of returned items or complaints due to an item not being as advertised on a catalogue. or promotional leaflet. Expect a significantly higher rate of returns if you start trading online, as many will just order and try the items at home, and won’t hesitate to return them as they can do it by post without having to talk with anybody in person.

Credit Card Fraud

The remote nature of ECommerce makes much more difficult to detect fraud, which means stores can lose money due to fraud. While traditional commerce is not totally secure, it’s easier for a sales attendant to verify that the person buying something is actually the owner of the credit card, by asking for photographic ID. However, the fight against card fraud is well underway and banks and responsible eCommerce owners work together to verify that all card use is legitimate.

Ecommerce and Order Fulfillment

Electronic Commerce or ecommerce as it is commonly know is the electronic exchange of information between two or more businesses computers. Ecommerce is also about the buying and selling of goods and services over the internet and the processes and information it generates. Basically ecommerce is the protocol that allows two or more computers to exchange information over the internet securely. It is also the electronic transfer of funds over the internet. For example, buying a book online is an instance of ecommerce in action. The data generated that is the credit card information, the account details of both the parties involved and the goods or services to be transferred are all handled by ecommerce.

The amount of business done over the internet has increased exponentially since its spread. Business-to-business transactions or B2B transactions as they are known are conducted through the net that is online. Ecommerce and order fulfillment generally comes into play between suppliers and distributors. The suppliers are the companies that develop, manufacture and produce goods and services. The suppliers do the market research and then develop the products. The distributors take these products and services and market them using the resources at their disposal. Hence the distributors and suppliers need to communicate effectively and accurately. This where the ecommerce elements come into play.

Order fulfillment software and programs are designed to enable a smoother faster flow of trade between the two. As always there is need for coordination between the supply and demand. The ecommerce business applications also serve the customer who is the heart and bloodline of commerce as they are the raison d’etre of the products, and of the sales and the revenues. The suppliers and distributors enter into B2B activities to better serve and provide for the needs and demands of the consumer.

Hence ecommerce business applications also benefit the customer who is at the heart of ecommerce. The best examples of ecommerce business applications are the websites that sell products and services. The online presences and business models are made more effective and meaningful to the consumer by the inclusion of these applications. The consumer also finds the site more appealing and interesting and may be convinced to take action.

An order fulfillment software is useful and beneficial to all users; suppliers, distributors and consumers. Good ecommerce business applications are easily available and accessible in the market and the internet. Choose a good, easy to use but yet powerful application that will serve all your needs. Use a graphic interface that is easy to understand and use. Do not under estimate the power of these applications especially in today’s marketplace.

Internet Marketing Companies VS Retail Stores – Ecommerce and Internet Marketing Success

So you have decided that after yet another slow month, sitting inside your brick and mortar kingdom, you just cannot keep working for your landlord, and need to start a real business that does not keep you sitting inside a retail shop. You need a business that has an eventual promise of financial freedom; one that entails minimal overhead and maximum return on your investment; one that attracts investors and uses the latest technology.

The advantages that online marketing companies, and online businesses have as opposed to retail businesses are as follows.

No Overhead
Drop-shipping has allowed ecommerce website owners to sell products without having to store them. What does drop-shipping entail? Well, put it this way. While a retail store has the constant overhead of rent, and requires ample space to showcase products, online web stores simply have the distributor or manufacturer ship it directly, simply sending over an order sheet. Wow, so you are telling me we do not need that much startup capital to start an ecommerce website or online business? – Yes that is right. However, you will still require a significant marketing budget, just like any online store. Another advantage of drop-shipping is that you can maintain lower prices than retail stores, thanks to the savings on rent, and/or increase your profit margin! So, if you are using an open-source (free) ecommerce platform, such as Magento Montreal or equivalent, your overhead will be limited to an annual domain name registration fee of approximately $10, and perhaps a monthly hosting fee, although, there are many free-hosting options for smaller (lighter) websites.

Unlimited Flexibility
The internet is a fun place to be because things always change. This means, more options are increasingly available. For instance, the introduction of social media into the picture, web 2.0 properties, or Google’s new caffeine, which takes into account the amount of frequent content updates on people’s websites. But, what this really translates to from a small business owner’s perspective is, options. Now, in addition, you can run an online company from pretty much anywhere in the world. In fact, for the past 2 months, I have been in Panama, Las Angeles, and Las Vegas. And… I have still be writing these articles, corresponding with my business partners, web designers, and clients – running a profitable business. Sound good? It is good! Especially when here in Montreal, temperatures can go to -40 degrees! Montreal web design work has never been better!

Limited Liability
Retail means contact… with people. As terrible as it is to say, sometimes, this contact can be very unpleasant. People can be extremely unpleasant. However, online marketing companies or other internet companies, have the luxury of responding to emails and phone calls when convenient, which allows owners to spend less time with difficult clients. Furthermore, it is far less likely and far more difficult for online customers to avail themselves of support, should the ecommerce or online company choose remain difficult to reach. There is a certain level of privacy, and confidentiality that comes with the internet, with the web, despite the numerous reports of privacy invasions.

That said, service industries, online or offline, both have more contact with people – customers.
So keep that in mind when developing your business model!