E-commerce businesses have revolutionized the art of doing business. Many top brands are trying to establish their online presence to buy their products or services with great ease. On the other hand, traditional companies opt for conventional business practices where they have a specific locational facility. This limits their audience to the respective vicinity they reside in. This article will provide insights regarding the two sorts where potential pros and cons will be discussed.

Basic Framework, Cost and Needs of Traditional Business

Keeping things simple, traditional businesses have many hurdles concerning their legal incorporation, the resources required for the jump start, and the infrastructure needed to kick start significant business operations.

Other issues in traditional businesses are the scope for expansion, the limitation of its locality, and the duration in which the facility operates. Little space or offices in conventional companies are a hurdle for the development of the core business. Moreover, such a business needs to choose its location prudently because if the site is not centrally located, there is a minimum chance of customer turnover. Furthermore, traditional companies operate with limited time. For instance, their regular working hours are from 9 am to 5 pm, making it difficult for customers to visit the outlet after the working hours.

Basic Framework, Cost and Needs of E-commerce Busines


When it comes to the E-commerce business, it is a lot easy to kick start operations as there are minimum hurdles in the legal incorporation of the required company. E-commerce business offers a dynamic solution for complex problems and extends the customer base of a business globally. It is quite convenient for such a business to operate through its E-commerce website, selling products online with special discounts, prices, and value-added services. On the other hand, the whole business model of E-commerce is customer-centric. This helps the customer to browse the interactive product portfolio and buy the products irrespective of wherever the firm resides.

Going for the E-commerce model would provide you with a global reach, essential in maintaining a large customer base. Furthermore, it helps the business to maintain minimum inventory levels, reducing the holding and ordering cost for the stock. Time is not a hurdle in such a business model since the website of an E-commerce business would run 24/7. E-commerce business is more convenient as different shipping agencies and payment gateways deliver the product to consumers, making it easy for them to shop online.


In today’s world, businesses need to follow the current trends to expand their existing operations, making it easier for them to increase their overall revenue. The risk in traditional business is high as compared to E-commerce businesses. Huge setup cost and infrastructural requirement makes the conventional company an inconvenient option. The E-commerce business with its global reach makes it a preferable option concerning the amount of investment. As a result, E-commerce businesses are more viable in the current globalized world.