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How E-commerce Impact Traditional Business

How E-commerce Impact Traditional Business - Coming Soon in UAE
27 January 2021
15 minutes to read

With technology’s progress, we are witnessing the traditional jobs in various sectors, either being replaced or changed.

One such transformation can be seen in commerce as online business is getting more famous than the traditional trade methods.

E-commerce alludes to the purchasing and selling of products or services utilizing the web. It is an umbrella term for online business, encompassing everything from retail shopping, banking, stocks to bonds exchanging, etc. Its impact on various industries is undeniable, especially on traditional organizations.

These days, individuals prefer to buy products online instead of going to retail stores. According to studies, the eCommerce market is growing exponentially. In 2021, it is expected to reach $4.88 billion worth.

A contrast between traditional Commerce and E-commerce

Trade has been going around in the world since the beginning of time. It is the central issue of pretty much every other industry. The world can’t work without it.

Thus, traditional business involves a direct exchange and face to face between the buyer and the seller. It is typically made in stores.



They both have one objective, i.e., a trade involving items being purchased or sold or services, with the customer being in the centre in both scenarios. Success is impossible to imagine without customers. Thus, you need to bring in customers for progress, satisfy them, and afterwards keep them loyal to you.

So, What Really Makes Them Different?

The most significant contrast between these two is accessibility. For example, if you need to purchase something at the store, you need to visit it during their working hours. In case you have a busy schedule, you would find it challenging to leave your house or workplace and visit the store.

But the situation is very different in online business as it is accessible 24 hours every day, seven days per week. E-commerce creates another distribution channel, and regardless of any occasion or working day, you can purchase anything you desire, at whatever point you need.

In addition, for sellers, the audience is not limited to a specific area. It can reach all corners of the world with sea shipping and Air freight companies delivering millions of items worldwide on a daily basis.


How Has Traditional Business Been Impacted?

Online business refers to purchasing and selling products on the web through the sites. So, the prefix “e” in eCommerce means “electric”, like email, e-banking, e-business, and so forth.

This kind of exchange enhances the shopping experience in many ways as the customer doesn’t have to go to the stores, wait in queues, search different stores for an item, etc. All the purchases are made through the sites, rather than on the stores.

E-commerce, Online Shopping

Why Traditional Ways are Still Better

There are still some benefits that give an edge to the traditional stores. As soon as you buy the item, it is readily available to you without having to wait for days or weeks for it to be dispatched. This makes the traditional business a better choice with the capacity to see and contact the item. In stores, you can generally check the things you want immediately or request somebody to help you out with it.

But as far as an online business is concerned, customers can’t have a similar experience mentioned above. In this case, instead of spending a minute listening to the company’s policy or terms and conditions, the customer has to read a lot of text to understand it.



If the customer doesn’t understand something, they can only post concerns live online chat or email. They need to wait for a response—this time and the time taken for the delivery count as negative experiences.


Additionally, online business customers need details about the item. Still, that doesn’t give the security that the item they purchased would be how they had imagined it to be and customers can’t know how the product will turn out to be.

Face to Face Communication

Face to face communication is the most significant benefit of the traditional business which the online business doesn’t offer. And if you are a seller, this sort of communication allows you to convince customers to buy your product which is not present in online business. Other benefits of traditional stores include:

  • Simple availability of day-to-day can be bought from nearby stores without any problem;
  • Simplicity in shopping is another advantage; you have to visit the store and pay bills convenient for places that are not much aware of technology usage;
  • Reasonable for anyone, taught, uneducated to open up a business in a traditional market;
  • Suitable for perishable goods;
  • Local items are easily accessible in the traditional market;
  • Customers can assess the quality, size, amount, colour and other features and only shop when satisfied.
  • Due to interaction and trust, buyers can get things on loan if there is temporary cash unavailability.

How eCommerce is Saving the Day:

Though traditional ways of shopping offer so many benefits, there are certain situations where it might not act as the best option. Besides that, digitalization is in trend today and organizations are generally attempting to have online stores and traditional stores.

UAE Shopping

Avoiding Health Risks

Traditional marketing is dependent on external situations. We can take the contemporary situation of the pandemic as an example. Amid such circumstances, it can be dangerous and risky to go to the stores, and eCommerce offers solutions.

Less Costs to Start a Business

It is much appropriate for startup businesses, as it costs a lot less to open up a store online than that spent on a traditional store. Then there are the additional expenses:

  • Hardware
  • Services
  • Merchandise
  • Security

It saves labour costs too. It doesn’t require much staff, for example, sales executives, project supervisors, etc.



Accessibility is the most significant leverage that the online business can offer as you can log into the site and order products from anywhere in the world. There is a freeway in and out. Limitations in online business are much lesser. 24×7 item accessibility.


Many retailers sell mainstream items; it is hard to get diverse items. So, eCommerce is the better option.

Controlling Prices

Besides that, other problems include corruption, hike in prices, etc., and according to reports, eCommerce has been able to control products worldwide.

Introducing a New Item

There is another noteworthy advancement. To launch new products previously, so much money had to be invested for promotion purposes. Now online business can make customers all over the world with considerably less money and effort.

Be that as it may, what eCommerce needs more is innovation. This can also assist traditional organizations in succeeding in the market.


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