

Do you lie awake at night worrying about going head to head with Amazon in a modern-day David vs. Goliath showdown? Especially when you consider that almost half of all online spending in the United States occurs on Amazon, a survey by BigCommerce reports. A whopping 83% of US consumers have bought something on Amazon in the last six months. How can a small, brick-and-mortar retailer hope to compete?
First, a reality check: some 87% of retail sales still occur in brick-and-mortar stores, according to Deloitte. Amazon itself clearly recognizes the value of brick-and-mortar stores, which have been shown to increase traffic to a retailer’s website. Its purchase of Whole Foods grocery stores, its Amazon Go convenience stores, and its announcement of plans to open a new grocery store brand all attest to Amazon’s respect for physical stores.
Although Amazon may account for nearly half of all online spending, that only adds up to about 5% of U.S. retail sales—which still leaves plenty of opportunity for you.
Why do consumers love Amazon? Convenience is key. Amazon offers a frictionless shopping experience that’s convenient, fast, and personalized. Here’s how you can do the same.
Instead of fearing Amazon as an enemy, enlist them as a partner. Half of all products purchased on Amazon last year were sold by third-party companies, according to Amazon’s 2018 Small Business Impact Report. Setting up a store on Amazon’s marketplace can not only boost your sales but also generate traffic to your website.
Selling on Amazon can even drive customers to your physical store. Almost one-third of shoppers in BigCommerce’s survey have bought a product at a brick-and-mortar location after discovering it on Amazon. Shoppers still like to see, touch and test merchandise in person before they buy, so use your Amazon store as a digital showroom to get customers in your door.
Last, but not least, focus on areas where Amazon falls short.
Berg recommends brick-and-mortar retailers focus on what Amazon can’t do. “Put more personality into [your] store. Stores are transitioning from the transactional to the experiential. The store of the future will be a place [where] consumers can eat, play, work, learn, discover and borrow things.”
Make your business the store of the future, so you don't just compete against Amazon, but thrive.
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