Ecommerce and Chain Stores Vs Traditional Business

Ecommerce and Chain Stores Vs Traditional Business

Last two years show the tremendous growth of e-commerce business, every business has hop on the trend of going online or selling online, and obvious reason for these being the convenience for customer to buy the product at the comfort of their selected time and locations and for businesses to the increase their reach, sales and ultimately the market and business size.

Every kind of business has now come to a two- way path where they need analysis of ecommerce and traditional business, to make decisions for their business, regarding going for traditional way of business or ecommerce.

Ecommerce and Chain stores have grown to some other level, making it tough for retailers to survive and sustain in the market. Though Ecommerce has its own benefits , it ignores the real and physical element of relation between business and customers. 


How E-commerce and Chain Stores are different from Traditional business

1. Customer’s Experience-

One of the elements while doing business is the experience that the customer has with business and while knowing the difference between E-Commerce and traditional businesses it is important to know the difference between customer’s experience in ecommerce or chain stores and traditional retailers.

Ecommerce- Customers have virtual experience of products and services, physical interaction with business and inspections of products not possible.

Chain Stores- Customers do get to physically experience and inspect products but the personal relation building between business and customer is not possible.

Traditional Business- They may not give the best experience to customers due to lack of money and resources, but the vital benefit of these businesses is to establish direct and personal relations between business and customer.


2.Shipping Time Constraint

Customer’s purchase decision also depends on how long it takes for the customer to get the product in his hand. Depending on the product, the need of the product, nature of product, sometimes customers will wait for the product to ship as the business takes place at comfort of location and time but sometimes they do not wait as they know what e-commerce might have immediate need and utility of the product.

E-commerce - In this business, the time for the product to arrive in the hands of customers is long but eCommerce knows this disadvantage of theirs and hence, they indulge in heavy discounting, frequent rewarding, innovative marketing and loyalty creation programs.

Chain Stores- In Chain stores, the customer does get the products immediately when they go for the purchase.

Traditional Business- While buying from local and traditional businesses, customers do not have to wait to get their hands on the products, as they get it immediately when they go to buy it.


3.Flexibility of Business Hours-

One of the most vital benefits of having an E-commerce rather than a traditional business is that it gives online presence to the business, making the business available to customers 24/7. In traditional business the window of operating the business or the business hours are limited ultimately limiting the span of business.

When a business is available 24/7 to the customer it becomes easier for business to reach customers as they are there for customers even at non- business hours, ultimately increasing the span of business and business hours, without deploying any additional efforts.


E-commerce- Available and is marketing 24/7.

Chain Stores - Limited business hours, with 24/7 marketing.

Traditional business - Limited business hours, with limited marketing.



The prominent advantage with E-Commerce trading is that it provides customers with the comfort of staying at home finding the products, and buying the product while in traditional business it takes them to travel, go to the store and make the purchase.

In this system the problem is not only the travelling but the time which may get wasted in the travelling if the customer does not get the satisfactory product which he went to buy.

E-commerce - No travelling required.

Chain stores and traditional business- Customers do need to travel.



Every business comes with a cost and cost can be of many types,such as - cost of set up, operation cost, maintenance and so on.

E-commerce - They get the most out of cost benefit, as they have low set up cost and operation cost due to lack of physical existence of business. They just need a warehouse system, logistic system and internet to be able and feasible to operate.

Chain Stores- They do get affected by the cost constraint, as they do have the physical existence of business and for which they need attractive stores and setup, resulting in really high set up and maintenance cost.

Traditional Business - They do have a moderate effect of cost constraint as traditional business lies somewhere between E-Commerce and Chain stores. They do have the physical stores but they do not need to get into the expensive and attractive setup and can spend setup and operational cost as per the scale and size of their business.


6.Customer Retention- 

One of the biggest challenge for a business is retention of their customer, irrelevant of having an E-commerce business or a traditional business or Chain store, every business faces the same challenge that is customer retention and it is equally important for all businesses, as one revisiting and loyal customer is bring more business than the three new customer into the business network.

And for the same, every business has its own advantages and disadvantages in regards to customer retention.

E-commerce- These businesses do have a huge financial and technological support, and hence they use tools such as discounting,  rewarding and loyalty programs for customer retention. Also the heavy marketing expenditure helps them to acquire and retain customers.

Chain Stores- Similar to E-commerce, chain stores are usually big brands which have huge financial and technological support at the back end, helping them to create discounting, rewarding and innovative loyalty creation programs for the customer retention.

Traditional Business - Being local and small in size traditional businesses do not have enough funds for marketing and loyalty creation programs, but it is equally important for them to have one , for existence and survival in competitive markets like today’s. Only advantage they have regarding the customer retention is any effort made by these business intensifies and give exponential results because it is easier for them to connect with local and revisiting customers, as they have the personal relationship and physical connect with the customers, helping them in building trust easily, and once the trust is build, a little effort using tools used by competitors such as rewards and discounts, towards benefit of customer makes them loyal.


How do they do it ?

Having many of the advantages E-Commerce and Chain Stores do lack in having physical interaction with customers, personal relations with customers, lack of trust as there is no physical factor. Despite having these challenges, ecommerce and chain stores have a huge loyal customer base, which is growing day by day , becoming a threat for survival of local business.

They manage to have a huge loyal customer base by using the tool of discounting and rewarding, customers love being valued and getting something extra in return and these giants have mastered this game of discounting and rewarding using technology and innovation. This is the reason that it's time for local businesses to get into discounting and rewarding and designing it in a manner that helps them earn loyal customers. And this is where Fayda Shop can help local businesses.


Fayda Shop is an application which provides hybrid system for local and traditional businesses, that helps them to get the advantage of e-commerce, i.e.  Being present online 24/7 to the customers, providing them with all the details about products, availability of products and price of the product near them in local stores, saving time and effort of customers. And also at the same time it maintains the traditional business, i.e. visit to the physically present local stores, physical inspection of products, having the personal relation with between the customer and the business.

Fayda Shop provides businesses with Fayda Coin- a cryptocurrency of Fayda Shop, which enables local and small businesses to reward their customers in new, innovative and attractive ways using Crypto Based Rewards and discounting, helping them make their own loyal customer base.

Fayda is not an ecommerce application but is a platform which makes buyers meet customers and customers meet buyers, along with their needs, requirements and all the details about the product and services available near them in the local market.

Businesses list themselves on Fayda Shop along with their products and details and customers can get the details about the business from the internet, get required details and make the purchase by visiting that store in physical mode and also enjoy benefits of discounting and rewarding with fayda coin.

This model gets the pros of ecommerce business to local businesses and helps them to sustain in the market and fight competition from ecommerce and chain stores.


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