Trading is something that has been prevalent among humans for a very long time. Of course, there has been improvements and modifications, but the basic concept has remained the same. If you trace it back to the olden times, trading in the form of barter system was very common. A person could avail himself of a certain commodity in exchange of something valuable that he could provide. The accuracy of the assessment of the credibility of the two products online could not be ascertained as such, making this system not a very logical one. Nonetheless, it was pretty successful and survived for a long time. Then came the traditional method of trading where a person walked into a shop and physically placed order for the stuff they needed, in exchange for some form of currency and took the product home with him. He was free to do what they wanted, use it for their purpose or sell it at an increased price in a market that demanded so. In short, they could retail it.
Then came the modern form of trade where all products are available at a store like a supermarket or a value mart, and people walk in and buy the products and bill it to a cashier who is not the owner of the market. A more convenient form of trading has been gaining grounds in this modern generation is the online trading. Almost all the products, from A to Z is now available just a click away. Franchisees advertise their products online and sell them through the same terminal.
However, companies like UNIWRAPS, deal in all three formats to reach more customers. They make sure that they are present in modern, online and traditional method of trading for better service and product distribution.
So, what are the real differences between these forms of trading? Let’s start with traditional trading.
In the traditional trading system, the buyer will personally go to the shop, examine the product, place an order if he likes it and then the shopkeeper will reply whether it will be feasible for him or what modifications can be done. On the other hand. On the basis of execution of the order in traditional trading, the delivery of the order is done immediately. On the basis of promotional value in traditional trading, the promotion is done in a straightforward way where the standard strategies are executed.
Where in-store sales are concerned, in this structure of trading, once the product reaches the shop, a shopkeeper can keep it on a shelf or a backroom, and when a customer asks for it, he can provide it. The payment is also made immediately at the shop while purchasing. However, most of the shopkeepers allow the customers to pay using their debit/credit card or digital wallet which makes the payment very smooth and convenient.
Pros of Traditional Trading
- The method of placement and execution of the order is simpler in traditional trading system.
- The payment is settled immediately, leaving no room for discrepancy.
- It has a more intimate contact between the seller and the buyer, making it more transparent.
Cons of Traditional trading
- The range of profit is not that big as modern trading.
- The customer has to be present physically in the store.
- It is a time-consuming method of shopping.
Modern trade is the form of trade where the Fast-Moving Consumer Goods move fast from the counter. The different types of modern trade are supermarkets and hypermarkets, which sell these goods and have a particular number of days in which stocks should be cleared. The question of bargaining and modifications is little more restricted here.
For delivery of the goods, in modern retail, there’s a stipulated time for delivery of the order. It is determined based on the availability and viability of the product like if it is a food material, it should be done in a day if a lifestyle product then maybe a couple of days or more. The wrapping material that is used for packaging food products should be non-reactive and safe for the product and should in no way contribute to its decay. Uniwraps is one such company that makes wrappers which are high quality packaging materials and can be used to wrap the food products before delivery.
For payment, in modern retailing, people can purchase using cash, long-term credit, instant payment via debit/credit card and digital wallet.
Online retail is an integral part of the modern trading system. Nowadays almost all the products are available online, from apparels, electronics to even the consumer goods. All major brands have their online site. Since people don’t even have to step out of their houses for this, it has become a very favorable mode of shopping for most of the people. The payment is also done online, and people can purchase using EMI, long-term credit, COD, instant payment via debit/credit card and digital wallet.
How does it work?
In the form of modern trading system, dealers and sellers advertise their products on the sites, and if anyone chooses to purchase them, they deliver it directly to the person’s address, either free or at a reasonable delivery charge. The displaying of the products is virtual instead of physical, and the materials are generally stored in a storeroom.
How is this convenient?
- You get to screen the products from the comfort of your place and order.
- The product will be delivered to your specified address.
- They are more prone to discounts.
- The versatility of the products is sometimes more than the store itself.
Differences between online retail and traditional retail
Traditional retailers have a physical shop where products are displayed physically, and people buy from there. In online retail, there is no such physical shop. Instead, everything is displayed virtually online, and you can choose and add products to your cart and then place the order.
In traditional retail, you get the product almost immediately whereas, in online retail, there is stipulated delivery time.
Marketing for traditional trade is through newspapers, radios etcetera. For online retail, the advertisement is majorly through the internet.
In traditional trade, the shops have to be opened to shop. Online trading can be done at any time of the day and its open 24/7.
In traditional retail, you have to go to the shop, online retailing, the shopping can be done from home.
Online retail is available even on mobile phones, making it more convenient and on-the-go, which is not possible in traditional retail.
Online retail has very good services in the form of live chats while traditional retail has people manning the help desk.
Though the forms of trading have changed, the basic idea behind it has remained the same. With the changing times, the way of trading has become more advanced and profitable, because of its incredible progress in all aspects.
Mr. Atul Garg