E-commerce: Destroying Traditional Trading? A Business Analysis

This essay delves into the significant impact of e-commerce on traditional trading practices. It begins by defining e-commerce and highlighting its role in the modern business environment, particularly in facilitating international trade. The essay then explores the positive and negative effects of e-commerce, focusing on how it is disrupting traditional brick-and-mortar stores. The first body paragraph discusses the benefits of e-commerce, such as time-saving and variety, while contrasting them with the advantages of traditional trading, like the ability to physically examine products and bulk purchasing options. The second body paragraph further examines the rise of e-commerce, emphasizing its adaptability and convenience, while acknowledging the enduring appeal of traditional methods due to factors like product inspection and immediate ownership transfer. The third body paragraph discusses the pitfalls of e-commerce, such as longer delivery times and shipping charges, while also recognizing the advantages of traditional purchasing, including immediate delivery and a tangible shopping experience. The conclusion summarizes the arguments, highlighting the advantages and disadvantages of both approaches and emphasizing the evolving nature of commerce. The assignment also includes a personal reflection on the author's business and marketing studies, explaining how the analysis of e-commerce and traditional trading is relevant to their career goals.

E-commerce has destroyed
the traditional way of doing
trade

Table of Contents
INTRODUCTION...........................................................................................................................1
Body Paragraph 1.............................................................................................................................1
Body Paragraph 2.............................................................................................................................2
Body Paragraph 3.............................................................................................................................3
CONCLUSION................................................................................................................................4
REFRENCES...................................................................................................................................6

INTRODUCTION
Business environment is becoming more competitive now a days due to that each and
every organisation want to do business at international level. E- Commerce is the activity in
which buying and selling of goods as well as services take place online over internet. In this, E-
Commerce is playing its important role because physical presence is not possible for companies
in every country (Dion, 2013). But E-Commerce have its negative as well as positive both
impact on the business. Mostly enterprises are using E-Commerce for business expansion and
this is destroying traditional way of doing business which giving negative impact on the
physical stores. Moreover, in busy modern era through internet people can purchase their daily
needs goods and services by sitting at home. This have positive impact on Electronic Commerce
business but negative on the physical stores or super markets (Toh, 2017). Below mention report
is going to explain impact of Internet commerce on traditional trading in negative as well as
positive both manner.
Body Paragraph 1
E-Commerce is the activity through which individual can purchase goods and services by
using internet services. It is suitable for those who need on limited products by utilising online
buying practices. There are several benefits of Internet commerce such as time saving because
everyone is busy in daily activity and no one can discovery several locations for purchasing
single products (Drucker, 2012). Due to shortage of time people believe in buying required
goods and services online. Moreover, with the assistance of E-Commerce there is no need of
visiting stores individual can purchase products by sitting at their home or anywhere. Most
important is that through internet Variety of services can be found on single platform there is no
need of discovering several places. Such as clothes, grocery items, electronic products and so on.
Traditional trading is the buying and selling activity in which individual or group of
people have to visit physical stores. Internet Commerce have its negative impact on traditional
approach because of its some benefits which is explained above. But most of the buyers believe
or prefer traditional purchasing because in this they can see as well as feel products
(SAIKIA,SINHA and PATGIRI,2017). There are several benefits of traditional trading to whole-
sellers because in market area variety of customers are available for particular products and
services. Some of them are who buy 2-3 quantity whereas, few customers purchase products in
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bulk from the owner of company. For these type of buyers traditional trading play important role
in positive manner because they can analyse entire market and then purchase in appropriate cost
which is suitable for them (Guang and Trotter,2012). Apart from this, in emergency of anything
traditional trading help because in this product will be purchase on the spot and if there is
requirement of exchange which also can be done there is no need to wait for 2-3 days.
For instance, with the assistance of E-Commerce customer can get variety of goods and
services on single platform. This is the main reason people prefer internet trading. On the other
hand, purchaser of bulk products believe in traditional trading because for them it is not easy to
buy goods in bulk through online platform.
Hence, E-commerce is the best compare to traditional services as view point of other
because of their variety services.
Body Paragraph 2
Internet Commerce is the widest concept in itself which is destroying traditional trading
practices. Because now a days people prefer exploring services by using internet in which E-
Commerce offering them needed services on single platform. There are several reason behind
success of modern purchasing or selling approach such as they adopt changes fast and products
available on their sites are totally as per the latest trend or requirement of the customers (Laudon
and Laudon, 2016). On the other hand, for traditional traders it is not easy to adopt these
modifications rapidly because due to this there is chances of facing several issues like wastage of
materials or products. Moreover, time play important role in busy life which is saved by the
person with the help of Internet commerce. But in traditional purchasing individual have to go in
market explore several places and then they can purchase which consume much time. Most
important is that in online purchasing money is refundable at the time of product refund but in
traditional shopkeepers never refund amount they exchange the product.
E-Commerce is destroying traditional purchasing habit of customers it is fact but there
are several facts which create existence of traditional purchasing in the mind of customers.
Because things coming from ancient time take long duration is destroying and it is not easy to
remove those practices entirely (Laudon and Laudon, 2016). Main reason behind existence of
traditional trading approaches is that customers can examine products physically on the basis of
their quality, texture and so on. This is not possible on online platform due to which people feel
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that if product will not deliver same as shown in the image or any fraud take place. Apart from
this, at the time of emergency traditional purchasing habit will help because through online
platform delivery is not possible within 2-3 hours. Their is one more reason behind existence of
traditional buying approaches is that in this immediate transfer of ownership take place when
money is paid which is not possible in E-Commerce (Matbouli and Gao, 2012). Hence,
traditional things are destroying because people have less time and they are going for online
purchasing.
Body Paragraph 3
E-Commerce is playing important role in market and have negative impact on traditional
practices. But at some level it also have pitfalls for customers because of which some prefer
purchasing through physical stores. One of this reason is that people don't get their order product
same day online platform have long term delivery process. It take 4-6 business days for
delivering ordered product to customer's address which is not suitable at the time of emergency.
Apart from this, in internet commerce extra cost occur in the product which is not included in
MRP and it is known as shipping charges (Negative effect of E-Commerce, 2015). Transfer of
ownership not take place on same day or on at the time of money paid, customers is known as
owner when ordered good handled to him/her. In addition to this, a negative effect is analysed
that security of customer get affected by utilising e-commerce. It involves basically the insecure
transfer which are conducted through online mode because it is not guaranteed about an
individual who paid amount that they are actual owner of particular used credit card (Roche,
2016). At the other hand, it is also analysed that if a client inputs their payment information then
it is very risky in terms of interception from third party in case the website was not secured with
the help of security measures in accurate manner. However, it may give rise to credit card fraud
or identity theft so that Merchants are required to be remaining aware of relevant risk factors
regarding electronic transactions and implement securing systems to high levels.
On the other hand, traditional approach of purchasing have its benefits which is totally
different from online purchasing and it not require any advertisement expensive for attracting
customers (Razaque and et.al., 2018). One of the major benefit is customers get hand to hand
delivery at the time of purchase take place. It also offering distinct or unique experience to their
buyers because they can feel as well as analyse quality of products, its design and texture along
with numerous shades and variation in their goods. This raise clients tangible experience of
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tradition shopping as well as providing an opportunity to select best by trying products which
suits personality of particular person.
I am pursuing business and marketing course in order to learn about relevant theories and
approaches to implement them in future for achieving better achievements in career. It is
necessary to analyse these strategies, techniques or methods to apply them in business as per
required situation of business to improve profits along with reducing risk factors. However, it
will provide support to me for gaining overall required skills, knowledge and abilities for
improving management capabilities to have successfully career in management of business and
marketing. Moreover, I will become able to set my career in finance, management, government,
marketing, retail and administration. Studying about relevant aspects and factors important for
business and marketing is helpful to gain perfection which facilitate to apply the same in my
career through grabbing effective opportunities to achieve growth. In addition to this, it helps to
to me understand for making relation with customers and retain for a long time with company in
respect of ensuring long term profitability.
At the other hand, course of business and marketing is helpful for me in terms of
completing my vision of establishing own firm and run my business successfully. I will become
capable to understanding overall government rules or regulations to be followed by organising
self business along with launching new concept in market to gain positive response of customers.
However, it is essential to conduct marketing properly which facilitate to increase profits of
business which requires to implement effective strategies and techniques for attaining desired
outcomes. This course of business and marketing is supportive for me as I have can learn about
marketing theories & situation based problem solving, communication skills for advertisement &
promotion, account management and sales & service. In addition to this, I can gain knowledge
and practical skills for conducting roles in business and marketing in proper manner with help of
applying appropriate theory to attain better outcomes in my career. Hence, e-commerce and
traditional both are playing important role but at some extend online shopping result in
destroying traditional one.
CONCLUSION
From the above assignment it has been concluded that, E-Commerce is the most effectual
innovative approach which help organisations expanding their business at global level. Along
with this, it enhance purchasing behaviour of customers easily through several offers and
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attractive advertisements. Whereas, Internet Commerce have negative impact on traditional
trading because of busy life people prefer purchasing their daily requirement products by sitting
at home or anywhere else. But at some level traditional persons believe in visiting stores because
in this goods can be feel as well as touch. Thus, old people mentality is that through online
platform things not deliver as same shown in the image. Although, both of these approaches
explain their own advantages as well as disadvantages in various manner.
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REFRENCES
Books and Journal
Dion, D.A., 2013. I'll gladly trade you two bits on Tuesday for a byte today: Bitcoin, regulating
fraud in the e-conomy of Hacker-cash. U. Ill. JL Tech. & Pol'y, p.165.
Drucker, P., 2012. Managing in the next society. Routledge.
Guang, T. and Trotter, D., 2012. Key issues in cross-cultural business communication:
Anthropological approaches to international business. African Journal of Business
Management. 6(22). pp.6456-6464.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
Laudon, K.C. and Laudon, J.P., 2016. Management information system. Pearson Education
India.
Matbouli, H. and Gao, Q., 2012, March. An overview on web security threats and impact to e-
commerce success. In Information Technology and e-Services (ICITeS), 2012
International Conference on (pp. 1-6). IEEE.
Razaque, A., and et.al., 2018, May. Survey: Wildlife trade and related criminal activities over the
internet. In Systems, Applications and Technology Conference (LISAT), 2018 IEEE
Long Island(pp. 1-6). IEEE.
Roche, E.M., 2016. Information and communication technology still a force for good?. Journal
of global information technology management. 19(2). pp.75-79.
SAIKIA, P., SINHA, R. and PATGIRI, R., 2017. A STUDY ON THE AUTHENTICITY OF E-
PAYMENT AND E-TRANSACTION SERVICES. Global Journal on Recent
Innovation in Entrepreneurship, Business Continuity and Risk Management. 1(1).
Toh, M.H., 2017. Development Strategies and Industrial Policies Amidst the Pervasive Use of
Internet. Industrial Policy and Sustainable Growth, pp.1-19.
Online
Negative effect of E-Commerce. 2015. [Online]. Available
Through<http://businessresources.over-blog.com/article-negative-effects-of-e-
commerce-86589177.html>
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