The small shops are affected due to the increase in the number of e-commerce startups which offer a range of products at discounted rates.
Advantages of E-commerce websites:
- The number of smartphone users is increasing day-by-day and also the usage of internet.E-commerce players are, therefore, confident about the services they offer. Customers can easily compare online and offline prices.
- E-commerce companies adopt the method of keeping offers and discounts every now and then to increase their sales. Indian consumers are price conscious, and this is what makes them visit these online stores, checking out their products and then proceeding to buy since they are available at cheaper prices.
- E-Commerce companies have all the possible products that can be there. Therefore, the customers have a variety of choices to decide from. Traditional small shops are not able to compete with this since they have limited products that are for sale. Customers always like to see a variety.
Advantages of small shops/Kirana stores:
- Shops that are there in a particular locality have some loyal customers who visit these shops at their convenience, and this is a major part of such small business to succeed. Small shop keepers also send products directly via home delivery. This is also a factor which makes the customer decide which to choose online or offline.
- Shopkeepers offer some extra services to keep their customers engaged. Like, a clothes store has tailors, the packaging of some products has been improved and made more attractive, etc. All these services are appreciated by customers. Such customization offered by small shopkeepers is appreciated by customers.
- Some shops like electronics even offer after sales support so that they can build a strong and loyal customer base. This is also an important factor which the customer considers while selecting between online and offline modes of shopping.
- Nowadays, the shop keepers are also partnering with e-commerce sites. In this manner, the ecommerce sites get more products, and the shopkeeper gets access to a larger customer base. The shopkeepers earn a great deal from this partnership.
Even though the E-commerce websites are big competition to small shop keepers, the shop keepers will have to be flexible in their way of working. Using the internet, keeping more products, offering discounts from time-to-time can also be a way to sustain in this competitive market.
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