Traditional Business vs E-Business: A Simple Comparison - Growth Freaks

Traditional Business vs E-Business: A Simple Comparison

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While traditional businesses are still one of the pillars of our economy, e-businesses are gaining momentum as we speak, and have been doing so for the last couple of years. There are many differences between traditional businesses and e-businesses. Some people – especially younger ones – prefer the latter, while others believe the former is still the most reliable out of the two. Today, we’re going to look at the issue of traditional business vs e-business, and see what are the main differences between the two.

Traditional Business vs E-Business: What Makes Them Different?


One of the most important differences between traditional and e-businesses is the fact that e-businesses brought about a power shift. More precisely, the power shifted from the seller to the buyer. Whether you’re an individual customer, or you represent a business, you’ll always have multiple seller options to choose from. This provides you with the power to discard those who don’t raise to your standards.

Market Fragmentation

If in the case of more traditional businesses, you could talk of a mass market, this is no longer the case. The mass market has been fragmented into multiple smaller segments. This phenomenon has reached the point in which there can now be a market size of only one customer. E-businesses contributed to this fragmentation a lot, since marketers had to come up with products that target small groups.

Geographic Location

Geographic location is no longer an issue when opening an e-business. Click to Tweet
You don’t need to live somewhere specific in order to develop a successful business. This is an advantage traditional businesses don’t have. Location doesn’t only affect customer interaction, but also business to business interaction, interaction with supply chain firms, and so on.


An e-business can sell its products 24/7, as opposed to a traditional one, where you can’t keep a store open at all times. If you’ve ever made an impulse purchase at 2 a.m., you know what we’re talking about. The fact that you can do that provides businesses with an immense advantage and an increased sales potential.


One of the most obvious differences between the two types of business is the fact that e-businesses rely heavily on technology. In order to use technology to your advantage, you first have to understand it. Even if this doesn’t mean you’re going to have to develop the necessarily technologies by yourself, you still have to know enough to be able to select appropriate professionals to do that for you.


Expenses also differ according to the type of business you own. Both types include expenses related to supplies, equipment, and so on. However, only one of them, namely the traditional type, requires you to pay for things such as utilities, lease, or maintenance. This decreases costs for people who own e-businesses.

Personal Time

Personal time is influenced by the way in which you do business. If you own a traditional business, you’re more likely to clearly separate work from your personal life. If you run an e-business, you might be tempted to work more and be available round-the-clock. This could put your personal life on the back burner.

We hope this comparison of traditional business vs e-business characteristics has helped you decide what type of business would suit you best.

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Author: Amanda Knowles