Definition of Traditional Commerce

Traditional Commerce or Commerce is a part of business, which encompasses all those activities that facilitate exchange. Two kinds of activities are included in commerce, i.e. trade and auxiliaries to trade. The term trade refers to the buying and selling of goods and services for cash or kind and auxiliaries to trade, implies all those activities like banking, insurance, transportation, advertisement, insurance, packaging, and so on, that helps in the successful completion of exchange between parties.

In finer terms, commerce encompasses all those activities that simplify the exchange of goods and services, from manufacturer to the final consumer. When the goods are produced, it does not reach to the customer directly rather it has to pass from various activities, which are included under commerce. Its main function is to satisfy the wants of consumers by making goods available to them, at the right time and place.

Definition of e-Commerce

e-Commerce or electronic commerce refers to the exchange of goods and services, funds or information, between businesses and consumers using the electronic network, i.e. internet or online social network. e-Commerce means trading and providing assistance to trading activities, through the use of the electronic medium, i.e. all the activities like purchasing, selling, ordering and paying are performed over the internet. The scope of e-commerce is discussed in the following points:

  • B2B commerce: When the business transaction takes place between two business houses, through the electronic channel, it is called B2B commerce.
  • B2C commerce: When the exchange of goods and service takes place between the business entity and the customer, over the internet, then it is known as B2C commerce.
  • C2C commerce: When the buying and selling of goods and services take place between customers using electronic medium, then it is called C2C commerce
  • Intra-B commerce: When the exchange occurs within the firm or business house, with the use of electronic media, it is called as Intra B-commerce.


Therefore, with the above discussion, it is quite clear that both the methods have their advantages and disadvantages. e-Commerce is just like the traditional commerce, i.e. when you log in to the website, you enter into the e-world for shopping, wherein you choose a category, specifications and you get the desired results. e-Commerce is not suitable for perishable goods and also for high-value items, while traditional commerce is not suitable for purchasing software or music.

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