This year has been rough on small businesses. Yelp reports that 163,735 businesses have closed down, 97,966 of which were permanent. In contrast, Amazon’s earnings continue to incline, and small businesses are having difficulty competing.

As the holiday season approaches, surviving small businesses have a chance to increase their profits and regain their losses from the past year. Here are some tips to help small businesses compete with an online retail giant like Amazon:

1 – Establish Brand Loyalty Early

As a small business owner, you are in a unique position to personalize clients’ shopping experience. Use this advantage to establish strong relationships with your customers. For small enterprises, those are the equivalent of brand connection. 

Do not wait until the Christmas rush to do this, though. Start early—send personalized e-mails, establish a loyalty program, and include a handwritten thank you note with every purchase. That way, you can create positive brand associations prior to the holiday season.

2 – Bank On The Size Of Your Business

Believe it or not, many consumers prefer shopping in small businesses than purchasing from large corporations. Keep that in mind when drawing more clients toward your small business. Tell your story on your website, introduce yourself and your team, and mention your other credentials. The fact that you are a small business weathering the pandemic and staying dedicated to quality is highly marketable.

3 – Optimize The Shopping Experience

If you have a brick-and-mortar store, establishing an online shop is imperative in this pandemic. However, simply having an e-commerce store is not enough to compete with Amazon. Your website has to be convenient and safe for clients. Make it easy and hassle-free to view and buy items, and accept as many payment methods as possible. Doing so will urge clients to buy from your small business.

4 – Mix E-Commerce With In-store Service

Another way to draw attention to your business is by mixing e-commerce with in-store service. Since social interactions are still discouraged, having your catalog of products available online lets you reach more people. Giving them the option of foregoing the shipping fee and picking up the items in your store can help encourage sales, too.

5 – Offer Incentives And Discounts

Amazon prices are ridiculously low and impossible to compete with. Even so, small businesses can put up a fight by offering discounts and various incentives to increase average order value. Best practices include offering free shipping, adding a free gift card, or providing a 10% discount when customers reach a certain amount. Strategically use promos so that clients will spend more on your website.

6 – Partner With Amazon

This tip may seem counterproductive, but it is an effective way to reach a wider audience. Aside from helping boost sales, satisfied customers from Amazon may choose to visit your website or physical store. You do not need to treat Amazon as your main selling platform. Instead, treat it as a showroom through which you can attract more clients.

7 – Offer Unique Products

The market is filled with millions of products, which can be overwhelming for the average shopper. Offering a product that stands out gives you a major advantage over other brands out there. Understand what sets your items apart and market that. In relation to this, avoid overwhelming your clients by carefully curating a manageable selection of products. This gives customers time to appreciate each item you sell.

Don’t Survive—Thrive

At the end of the day, small businesses have products that even e-commerce giant Amazon can’t offer. If you truly want to succeed, do not focus on beating Amazon at their game. Think about what you can provide that Amazon can’t so your business will stay afloat despite the competition.