written by | October 11, 2021

Is E-commerce Business better than Retail Business ?


We are in the age of the internet and shopping has become easier than ever. All you have to do is click a few buttons and there are thousands of varieties available to us. We have e-commerce companies that have reached the value of trillion-dollar and are making more money than the whole economy of many developed countries. The e-commerce has attracted all sizes of businesses be it small or big and from various sectors be it clothing, machinery, or even education. The world knows what future demands and with these technological advancements and ease of internet accessibility, people are considering setting their business online more than ever.  During the pandemic, we saw an immense increase in the size of the e-commerce market. There are many benefits of setting up a business online but there are a few repercussions too but we all can agree that this medium has brought more good than bad. Now, even the small business entrepreneurs can directly reach the market without having to sell their items to the middlemen, the retailers, and bring all the profits directly to their pockets. Although during the pandemic, we saw many retail businesses being closed as they didn’t have resources to even pay rent for the shop where they run the business from, there has been a spike in the number of local brands that function from homes and small cities and provide services directly to the customers. We have independent females investors who are breaking all the barriers and making a mark in the industry that is often led by only males. 

The times are changing and demand for a new system, we have wanted to get things back to normal, but preferring e-commerce for shopping has been normal for a while and we have become more used to it than ever as it is just a click away. The ease and convenience is managing business is better and saves up resources. There are many advantages of setting up an e-commerce business that just a retail business in today’s time. Let’s have a look at few of them:


Sitting in your most comfortable couch in an air-conditioned office is a lot better than standing in front of a desk in your shop and convincing the customer to buy from you 24*7. You can manage everything by sitting at your home or office.

Reduced Staff Requirements

When you are directly selling to customers there is a lesser requirement to manage your business. Since you don’t have a shop you do not need helpers. For the small businesses that are set at home and they are selling directly to customers, there is no need for a middle man. It saves the recruiting process and you have to deal with fewer people and their problems.

Reduced Costing

When you set your business online, you don’t have to think about buying/ renting a place for setting up your business. There is no maintenance cost. All you need to do is to have knowledge of creating and managing the business. You can promote them easily on various social media platforms and is easier to advertise and saves a lot of money.

More Control

Whenever we are managing offline there are a few situations where there is a hassle between you and the customer. When you are managing online, there is no direct contact between you and the person who is buying from you and it is unlikely for such thing to happen.

More profit

When you set up a business online there is no requirement of a middleman. You are selling your products directly to customers and therefore earning the profit directly. There is no setup cost. You just have to have a good delivery system and that’s it.

Global reach

When you have an online business you have a global reach. Setting up a website on the world-wide-web ensures that anyone around the world can look at your products and buy them. Unlike a store that you open in the city’s local market, you can have the attention of anyone who is accessing the internet.

Easy and fast expansion

When you have a website set already and you have a global audience watching you, even if you start locally but want to expand your business, all you need to do is invest in marketing and delivery system unlike in offline business where there are hassles of setting the store up and making a mark in the unfamiliar new place.

No Crowds

As said earlier, it is more convenient to manage your business sitting on your couch than to stand behind a counter. We are undergoing a pandemic and it is safer to stay away from public places where people gather. Managing from home, you don’t have to worry about the crowd. During the pandemic, stores suffered the most during the lockdown, whereas those who provided service online made a profit.

Low Maintenance

To keep your store running online all you need to do is to keep the website running and market it properly. Rest, the quality of your product and delivery will keep the sales going. In an offline store, maintenance demand is so high that it the fear of which many people are unable to pursue a career as an entrepreneur.


Nowadays there are many software that helps you track your growth. Let you know about the insights of the business. Since online business is fully digital, you have an upper hand. You can evaluate it at any time and make changes to it.

Customer Insights Through Tracking And Analytics

When your customers enter your website, you can ask them to allow you to share your network and can get access to what are the major things they search about and depending on that increase the variety of your product. This is totally legal in the e-commerce market and is used by most of the websites.

Fast Response to Consumer’s demands

When you have the data of what are the most popular products on your e-commerce website being sold by you, you can increase their prices slightly, and still, people will buy it because the demand is high. Likewise, you can stop the manufacturing of certain products that are not being purchased by people. 

Ability to Scale Up or down quickly

Depending upon the resources you have, you can scale up your business and all it will require is a good PR team and knowledge of the internet and the trends. If you follow them, you are more likely to grow your business and be noticed by people. Using social media for propagation of business and using influencers for marketing is a great way too. If you want to scale down your business, you can stop investing in advertisements. You can either make good use of unlimited “shelf space” depending on the market trends and consumer demands.

Personalized Messaging

The e-commerce platform gives the merchant the right opportunity to present a personal message to customers. Whenever there is a request to buy, there is a certain sale, or any other offer, when the customer is registered and has signed up for a newsletter, the merchant can send them a personalized message and remind them to buy from the new collection or the clearance sale.

It takes a lot of courage to set up any business be it small or big. With the current state of the economy of our country and unemployment rate, more than willingly, we are required to show this valor and dip our legs in the huge sea of business industry. There are multiple options available for us to choose from as to which business we should start be it high or low in investment and the platform that is open to all is the e-commerce business.

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