Differences between commerce and e-commerce - SS1 Commerce Lesson Note

Commerce refers to the general buying and selling of goods, services, or information, whether conducted through physical stores, markets, or other traditional means while e-commerce, on the other hand, specifically refers to the buying and selling of goods, services, or information conducted over the internet or through electronic means. We can  differentiate between commerce and e-commerce based on the criteria below:

Platform:

·         Commerce can take place through various physical channels such as brick-and-mortar stores, markets, or face-to-face interactions.

·         E-commerce, in contrast, is conducted exclusively through online platforms, websites, mobile applications, or other digital channels.

Accessibility:

·         Commerce may require physical presence, with customers needing to visit stores or locations to make purchases.

·         E-commerce offers accessibility and convenience, allowing customers to make purchases from anywhere with an internet connection, using a computer, smartphone, or other digital devices.

Geographical Reach:

·         Commerce is typically limited to a specific geographic area or region, depending on the location of physical stores and marketplaces.

·         E-commerce has a global reach, allowing businesses to sell their products or services to customers worldwide, breaking down geographical barriers.

Transaction Process:

·         In commerce, transactions often involve face-to-face interactions, physical handling of goods, and the use of cash or other traditional payment methods.

·         E-commerce transactions occur electronically, with customers making online payments using credit cards, debit cards, digital wallets, or other electronic payment systems.

Cost

·         Commerce often involves higher costs, including expenses related to maintaining physical stores, inventory management, and staffing.

·         E-commerce can be more cost-effective, as it eliminates many traditional overhead expenses and allows for streamlined operations, particularly for businesses operating solely online.

Customer Experience:

·         Commerce offers customers the opportunity to physically examine and interact with products before making a purchase, providing a tactile and sensory experience.

·         E-commerce provides a different customer experience, relying on product descriptions, images, reviews, and ratings to inform purchasing decisions. Customers cannot physically handle or examine products before buying them.