Comparison of E-Commerce and Traditional Business Model for Retail Sector
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Abstract
This research paper aims at establishing the difference between the economics of electronic commerce and the traditional business systems in the retailing venture. They explore how digitalization and technology, technological and behavioural change affect the working productivity of each model. Information was collected using questionnaires on retailer firms and consumers to establish their outlook on both business strategies. Data analysis was done using past statistical analysis techniques with the help of the SPSS program in order to look for patterns and the feasibility study of the cost model, customer relations and the company’s expansion.The results suggest that e-commerce presents lower operating costs, more extensive market access, and improved customer attractiveness of digital platforms. Nevertheless, in the NRM, traditional forms of retailing remain effective in providing customer attention and instituting loyalty to locally situated consumers. This research also emphasizes on the importance of integrated models, e-commerce and store-based retailing as they provide a balance for today’s complex current retail environment. As the conclusion, the specific recommendations are given to the retailers on the choice of the flexible tactics accompanied the digital tools application preventing the loss of the face-to-face contact advantages. It is, therefore, imperative that related research work should focus on identifying how such hybrid models may be sustained in the future and how they may be adapted to accommodate other technological advancements or consumers’ expectations in the future.