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Chart of difference between E-business and Traditional business Points of
differences
E-Business Traditional business
Meaning
It means electronic business. It
also refers to the activities
through the internet.
It refers to the local store which
provides the products and
services to the local customers.
Cost
There is very less cost to start an
electronic business.
Traditional business having a high
cost for start-up and other
activities.
Operating cost
Operating cost is less in e-
business because all the activities
are through online mode.
In traditional business, operating
cost is high.
Physical
examination
In e-business, no physical
examination of goods is required.
This business includes all those
activities which are related to the
local market, so physical
examination is possible in this
case.
Distribution
As an online business, there is no
channel of distribution because all
the transactions are through the
internet.
In this business, various
intermediaries are involved such
as wholesaler, retailer, sale agents
etc.
Risk
High risk is involved in the
electronic business as there is no
personal or direct contact
between the parties.
As all parties are connected and
having personal interaction so
there is very less chance of risk
related to misconduct.
Human
Resources
Technically qualified and IT
professionals are needed to run
an online business.
Semi-skilled and skilled human
resources can run traditional
business smoothly.