In order for a story to be a story it has to include both a plot and characterization. An essay typically has neither of these.
Now I know that there are plot-less stories. However this usually refers to stories that have a very minimal plot (eg. a man wakes-up, considers his life, goes back to sleep). This is still a plot even though it is barely anything. And sometimes the characterization in a story is extremely flat (eg. Heathcliffe was tall, dark and handsome; noble, heterosexual and a Tory.) but it still counts as characterization.
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