How small businesses can do better than Amazon
For starters, offer something different
Q: I own a store that sells high-end kitchenware. People have always window-shopped here, but more and more I find them inquiring about the price and then telling me that they are going to go home and buy it on Amazon. What is a shopkeeper to do? — Sammi
A: Can you compete with Amazon? No way.
Just today, I heard a story about how Amazon is getting ready to hire — get ready for this — 50,000 people for its distribution centers and has set aside Aug. 2 as “Amazon Jobs Day.” Not only that, but Amazon has 80 million Prime members in the U.S. alone (up 36% from last year) and first quarter 2017 sales topped $35 billion.
Barnes & Noble couldn’t compete with Amazon yesterday, Sears can’t today, and no, you can’t tomorrow. That’s the bad news.
The good news is, you wouldn’t want to.
Let’s think about it. What is it that makes Amazon so popular? Oh sure, there’s free shipping with Prime and a boatload of movies and music, but that’s not really it. The two main reasons people buy from Amazon are its incredibly low prices and its equally incredibly ginormous selection.
Now ask yourself this question: Is that your turf ? Is that the sandbox you want to play in? Is your brand the “low-price leader”? If the answer is no (and I suggest it is for most small businesses), then competing with Amazon on its turf makes no sense for you.
That said, Amazon is of course still out there, and the empty shopping malls from coast to coast are evidence that, even if you don’t want to compete with Amazon on price or selection, you must take the threat they potentially pose seriously. How do you do that? You have to do what you do, only better. You have to create a business that cannot be compared to Amazon. What is it you do that is better than Amazon? How are you unique? For instance, almost assuredly you offer a more personal experience and better customer service than Amazon. Start there.
Near where I live is a small, independent bookstore, the great Annie Bloom’s Books; the type of bookstore that Amazon was supposed to have put out of business years ago. But here they are still — bigger (er, smaller) than ever.
Walk into Annie Bloom’s and it’s like walking into grandma’s house on a blustery day — it’s warm, inviting, comfortable. In the front, you will likely meet Molly, the big black tabby that lives at the store. Wander to the back and you will find kids on the floor, plopped down reading a pile of books.
Go down the stacks and you will discover “staff favorites.” Stop by midweek for a local author book launch party. No wonder the place is beloved.
And no, a drone cannot deliver an experience like that, even if the book is a few bucks cheaper.
So how do you deal with Amazon (notice I didn’t say compete)? This is what works:
Be unique. Whatever it is that you do different and better, bet on that. Annie Bloom’s doesn’t try to compete with Amazon on price, and Amazon can’t compete with the “neighborhoodiness” of the store.
Go local. Speaking of local, that is your second calling card. People these days realize the im- portance of shopping small and local. They want to support their community and local economy. By entrenching your business in the community, by joining local civic groups and donating time, money or materials to local causes, you make it easy for people to do that.
Sell different. To the extent you can source and sell something in your shop that people cannot easily find on Amazon, it behooves you to do so.
Love your customers. Treat them like the small busi- ness royalty they are. Love and nurture them. Give them deals. Make them feel special. Amazon’s customers want one thing — low prices. Yours want something else.
Whatever that is, give it to them.
That’s how David slays Goliath.