E-Commerce Creating a Better World for Small Businesses?

That’s not a perspective you hear a lot. And ok—from a strictly objective perspective, stores like Amazon, eBay, Mercari, etc. aren’t making things any easier for the mom-and-pop shops here in Victoria.

It’s easy to forget that the internet is more than just a place to work, unwind, and visit a remote roulette casino. In just a few decades, it completely changed the rules of commerce that have existed for hundreds of years.  

And yet there is an attitude you’ll come across almost inevitably as you shop for the holidays or even just spend a little bit of time walking up and down the streets of our community:
“Shop local. Support small businesses. Keep money in the community.”

A world before big box stores and the internet almost certainly was more supportive of small businesses. Now, in a world shaped by late-stage capitalism, however, e-commerce and massive retail chains have created a cult-like nostalgia for small businesses. Can online shopping be good for family-owned stores?

Increased Interest

According to the Pew Research Center, almost 90% of adults say that small businesses have a positive influence on the community. Another 64% of shoppers say that they actively try to support these businesses.

It’s important to understand that this interest in small businesses exists as a reaction to E-Commerce and chain retail. People feel a nostalgic pull toward mom-and-pop shops exactly because they are being threatened.

No one tries to save animals before they reach threatened status, and nor was anyone particularly enthusiastic about supporting local businesses when doing so was the only option.

Of course, the mere fact that people want independently owned stores in their town is not enough to keep them in business.

E-Commerce Can Be a Tool, Not Just a Threat

It’s important to understand also that e-commerce isn’t just for the big guys. Literally, any business can open up an online store and start driving more sales. It takes less than an hour for even a layperson to develop a really high-quality website, and running it is often less than $100 a month, even with ads.

Mom-and-pop store owners can significantly increase their revenue by selling merchandise online as well as in person. Think how much more money a downtown bookstore could generate if their materials were available on a Shopify store, Amazon, Mercari, eBay, etc.

By diversifying revenue streams through E-Commerce, small businesses could potentially stand to be more profitable than they were before the Internet.

Online Tools Drive Business

When was the last time you found a store without going through Google first? Those Google reviews and local business advertising services are a HUGE way for mom-and-pop shops to generate both interest and awareness.

It does take time, effort, and cash to develop a strong web presence, but making that investment can help small businesses stand out both against local competitors and online retailers.

Putting it All Together

Digital technology takes with one hand and gives with the other. Yes, it is true that online stores have stomped out many small businesses. Surely, they will eradicate more in the years to come. However, by using the internet to their advantage, small business owners have a chance to gain greater visibility and significantly more sales.

That said, the fate of local shopping is ultimately in the hands of consumers. Even small stores with an excellent business plan and meticulous implementation of local SEO and other online practices won’t be able to compete with Amazon on price.

The world’s biggest online retailer wholesales in quantities that would be unimaginable to your favorite corner store. They ship so extensively that they have their own distribution network, and can bully other delivery services for rock-bottom rates when they need to.

In other words, there is a cost associated with shopping locally. There is also a sharp cost to letting small businesses die. It’s up to consumers to decide which expense is more tolerable.

Conclusion

We live in a world that is increasingly digital. Buying Christmas gifts on Amazon is almost always easier and cheaper than driving downtown and looking for ways to circulate your money locally. What’s more, a business model built on nostalgia alone isn’t going to move the needle much for small businesses.

Still, it is fair to say that we live in an increasingly entrepreneurial era. The Internet may provide robust competition for small-scale retail, but it also gives local business owners the resources they need to do well.

Small shop owners don’t want a customer base that frequents them out of a sense of guilt or even charity. Rather, they want loyal customers who like what they have to offer. They can get them, at least in part, by leveraging some of the same digital technologies that are so threatening to them.

E-Commerce has made purchasing experiences easier, but also less enjoyable. There are tons of consumers out there, especially in our city of Victoria, who are grateful for the opportunity to support great local stores run by caring owners.