How small business retailers can fight back against online marketplaces

How small business retailers can fight back against online marketplaces

It’s unavoidable: today’s retail world is dominated by massive online marketplaces. For years, e-commerce has become an increasingly important part of retail sales, and this year nearly $1 in every $5 is spent online. The coronavirus pandemic has only made e-commerce stronger; online sales rose by a huge 39% at the end of 2021 compared to the same time last year.

What’s also clear is that, for small business retail, fighting online marketplaces is a difficult battle. According to research from Shopify, two in five local retailers are struggling to compete with major online retailers, and nearly 60% say they might have to close up shop in the next two years. If e-commerce isn’t going away, the question is: how can small business retailers compete with e-commerce giants?

How small businesses are fighting back

It’s not all doom and gloom for small business retailers. Online marketplaces are powerful, but they can’t do everything: there are some areas where small businesses can take advantage of their size to offer unique experiences to their customers.

Store atmosphere

Many small businesses are starting by offering what online marketplaces can’t. Instead of selling the benefits of shopping from your home, small businesses are selling the experience of visiting a brick-and-mortar store. For example, customers buying clothes may prefer to see and feel their purchases in person, rather than ordering online and sending them back when they’re not as expected. Curating store atmosphere includes everything from design and layout, to unique events for local customers, like book signings at a library, or live music in-store.

Customer service

If there’s one thing that small businesses have over online marketplaces, it’s customer service. It’s a well-known fact that the bigger the business, the less time they can give to individual customers. Small business retailers can take advantage of their size to provide unique, personal service to each customer. Whether this is by engaging customers in person or providing a personalized experience through online sales, small business retailers are offering something big business just can’t.

Increasing e-commerce capability

Of course, some businesses are saying if you can’t beat them, join them. There’s little point in ignoring the trend towards e-commerce, so it makes sense to increase your business’s capabilities when it comes to online sales. This doesn’t mean you have to use your competitors to sell your products. Services like Shopify enable small businesses to sell products online by taking on some of the necessary administration and infrastructure. In fact, Shopify recently announced that it is developing a new feature on its app to highlight businesses in the local area and encourage customers to visit them.
Plus, small businesses can bring their unique qualities to their online sales. Think about how to bring the personal touch to how you sell, package, and ship your products. Making the connection with customers is a big thing about what makes small businesses great, there’s no reason you can’t continue to do that online.

The takeaway

E-commerce is not going anywhere, which means online marketplaces will continue to grow in popularity. The best way for small businesses to fight back is to show how they’re not fighting the same battle. Small business retailers can offer store atmosphere and customer service that bigger businesses just can’t. And, when they do sell online, they can bring that personal touch with them.