Management Management Differences between e-commerce and traditional commerce The following are the differences between e-commerce and traditional commerceDirect interaction-normally, traditional commerce is frequently based around one on one interaction and customers have the opportunity to ask and know more about the product something that facilitates a successful transaction. This usually gives the staff selling, a chance for upselling or convincing the customer to purchase a related item or an additional expensive item, hence increasing the business profits .In comparison, e-commerce does not provide this advantage unless features like live chats or related items are applied (Goel,2007).Lower costs: ecommerce is normally less expensive than operating a physical shop in a popular location. When contrasted with expenses such as business space rent, operating an online shop can be more affordable. This assists small business vendors having no sufficient capital to rent prime space or hire employees to set up as well as operate business (Akhter,2009).Reach: having an online store enables one to do business worldwide provided s/he can communicate via email, as opposed to traditional commerce where one only deals with people who come to the physical store. This also facilitates other ways of marketing that can only be done online, which increases sales and customers (Akhter,2009).Return rates: In a conventional shop, the client purchases goods in person, in the process getting the opportunity to check the items, touch and try them effectively reducing the complaints and returned items. On the other hand, online shopping is characterized by high returns, because many clients order and try goods at home, they will return them if they do not meet their expectations (Akhter,2009).The following are developments that led to the emergence of Internet as an electronic commerce infrastructure.Over the years, the phrase electronic commerce has been changing. Initially, electronic commerce referred to the electronic facilitation of commercial transactions by use of technology such as Electronic Data Interchange (EDI) that was introduced in 1970s.The EDI facilitated electronic sending of commercial documents such as invoices and purchase orders. The second major development involved the activities more accurately referred to as Web commerce-which is the buying of services and goods over the World Wide Web through secure servers such as HTTPS which is a unique server protocol capable of encrypting confidential ordering data to protect customers (Akhter,2009). Whereas the Internet, in 1994, started to progress in popularity amongst the general public, it took around 4 years to come up with security protocols such as DSL and HTTP which facilitated quick access in addition to a reliable internet connection. A large number of corporations and businesses in the US as well as Western Europe traded their services in the World Wide Web. It is this time that saw the changing of the meaning of the word ecommerce to the buying of available services and goods over the Internet by using electronic payment services as well as secure connections. E-commerce since then has grown tremendously with 2007 accounting for 3.4% of total sales (Goel, 2007).ReferencesGoel, R. (2007). E-Commerce. New York,NY: New Age International.Akhter, S. (2009). Proliferation of theInternet Economy:E-Commerce for Global Adoption,Resistance and Cultural Evolution. New York,NY: IGI Global.

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