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1. The concept of traditional and e-commerce
• Traditional commerce: depends on the presence of physical stores and shops where the seller and buyer deal face-to-face. This trade requires the presence of an actual geographical location for the store and physical inventory.
• E-commerce: depends on digital platforms and websites to sell products or provide services. Purchases and payments are made online, without the need to visit a physical store.
2. Ease of access
• Traditional commerce: requires the customer to visit the store physically during business hours.
• E-commerce: enables customers to shop anytime and from anywhere, making it a more flexible option.
3. Operational cost
• Traditional commerce: includes high operating costs including rents, electricity bills, and employees.
• E-commerce: is characterized by lower costs; as it does not require physical locations or a large number of employees.
4. Customer experience
• Traditional commerce: gives customers the opportunity to see and try products before purchasing.
• E-commerce: relies on providing images and specifications of products, and allows customer reviews to enhance confidence.
5. Geographical scope
• Traditional commerce: is often limited to the geographical scope of the store.
• E-commerce: Allows access to customers all over the world without geographical restrictions.
6. Payment methods
• Traditional commerce: Mostly relies on cash or credit card payments.
• E-commerce: Provides a wide range of payment methods, including bank transfers, credit card payments, and electronic payment services such as Apple Pay and “Mada”.
7. Marketing and promotion
• Traditional commerce: Relies on advertisements in newspapers, magazines, and road billboards.
• E-commerce: Relies on social media, search engine optimization (SEO), and sponsored ads.
8. Customer interaction
• Traditional commerce: Direct interaction with customers face-to-face.
• E-commerce: Interaction is through customer service via live chat, email, or social media.
With the rapid digital development in the Kingdom of Saudi Arabia, many companies are moving towards e-commerce to benefit from its great advantages. However, each type of commerce has its own advantages and uses. It is important to choose the model that suits your business and the needs of your customers.
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