

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.
Headquartered in New Hyde Park, N.Y., Kimco Realty Corporation is a premier owner and operator of open-air shopping centers. The company owns interests in approximately 500 U.S. shopping centers comprising over 80 million square feet of leasable space across 35 states and Puerto Rico. Publicly traded on the NYSE since 1991, and included in the S&P 500 Index, the company has specialized in shopping center acquisitions, development and management for more than 50 years.
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