How to Compete With Mega Brands

It takes more than just a little bit of moxie for small- and medium-sized ecommerce companies to compete with Amazon and other giants. In light of the COVID-19 pandemic, small businesses find themselves more

You might find yourself outmatched by multi-billion-dollar corporations, but that doesn’t mean small businesses can’t make a profitable niche in the online marketplace. What's the secret? The secret is to accept what these brands bring to your business that your company cannot. Next, understand what you can bring to the table. Here's how.

Accept Being Small

Convenience is the key difference between big brands and small ones. One thing that you will notice immediately if you survey Amazon customers is how they feel about Amazon's convenience. They would love to shop elsewhere, but Amazon is the only place they can find everything they need, with millions of reviews, two-day free shipping and no-questions-asked returns.

These value propositions can be very difficult to match, so Amazon must pay the merchants. Yourkey differentiation factor is also hidden in the "casual survey responses", because Amazon doesn’t have in its corner passionate customers. According to 40% of Amazon shoppers would like to cut down on their Amazon purchases, while 30% feel guilty about shopping at Amazon. This number can be even higher in certain segments.

Amazon customers have a mixed relationship with Amazon. Amazon customers have a mixed relationship with local merchants and small businesses. However, they can shop with them to feel fulfilled by supporting the economy and giving back to the community. This is a great opportunity to take advantage of your small business role and make it work for your benefit.

Here are some easy ideas to get you started.

Enhance your About Us Page: The perfect canvas for capturing small business bliss is your About Us Page. To make it personal, tell the story of your business, your inspiration to open your online store, and include photos of you and your team. Bonus tip: If you include your mission, it can really touch the hearts (or purse strings) of those who are interested in supporting a smaller business.

Add icons on your website: Are You a Member of the BBB? Add icons to your template to show customers that you are small and reliable. You can also add a callout to your template or checkout page that states, "We support small business." This will provide online shoppers with a reminder to buy from a good cause.

Make your products transparent Let your customers know where your products came from and what materials they are made from. Customers will feel more connected to your products if they are "Made In the USA" or made by you. Customers don't know where their products are sourced or whether they were manufactured under the best conditions.

Share your start-up culture It's important to establish a personal connection between you and your customers. How better to do this than by sharing photos of your team and yourself? People have always preferred to purchase from people they trust, even back in the olden days. You can establish credibility by highlighting your team behind-the scenes.

Personalize the experience to establish unwavering brand loyalty

You can use the ambivalence that customers feel towards larger brands to position yourself as a fan favourite and gain an advantage over large-scale retailers. This type of loyalty can only be achieved through personalized brand experiences. Customers will return to your site more often if they feel valued and respected.

These are some of the ways you can personalize your customer experience and build brand loyalty.

Create your loyalty program. After you have launched your customer loyalty program, keep in touch with your members through emails that contain special coupons, discounts and announcements. These people are your most loyal and repeat customers so make sure you treat them like VIPs.

Grab a pen. Handwritten notes are a great way to communicate your gratitude, especially as we don't often see them anymore. Consider including a thank-you note with each shipment, depending on how many you order. If you don't have the time, send a thank-you card every month to your most valued customers.

Don't send generic emails Customers don't feel special when they get emails that say "Dear Customer". Instead, insert your customers first names in your emails, especially transactional emails.

Make product suggestions: If your goal is to upsell, you can suggest products to specific customer segments based upon their past purchases. This functionality is likely to be available in your shopping cart software. If not, you can do data mining on past orders to make your own conclusions.

Despite the existence of large customer service teams and a huge marketing budget, nothing will replace a personal connection between seller and buyer. You'll build a strong relationship with your customers by taking the time to make them feel valued and appreciated.

Concentrate on product specialization and expertise

Imagine that you have found a piece of beautiful art that would be perfect for your living room. You have the chance to talk to the artist before you purchase. She will introduce you to the piece, explain her inspiration, and walk you through each brushstroke. After her explanation, you are free to ask questions or shake her hand. You will have a deeper appreciation of the product once it is over.

Your expertise can help your customers appreciate the same product. Here are some ideas:

Start a blog: In addition to its SEO benefits, having a blog that is focused on your industry and products will help you build your credibility. Write posts that explain the benefits, history, and context of your product. If you are a product creator, create posts that explain the steps involved in creating them. If none of these options apply to you, make posts that show the lifestyle your brand and products represent (especially helpful for apparel and fashion). Even though you are just starting to blog, use strategies to get people to read your content.

Create a FAQ section: This will allow you to add expertise to your website.

Ask customers questions: There's no better way to show your expertise than to answer customer questions. Ask customers for questions. Encourage them to post comments on your blog or update your status on Facebook to take inquiries from their fans. You'll build trust and rapport with both individuals and the general public once you have responded.

Create product videos: Product video is a proven tool for increasing conversions. They also help customers understand the product's benefits and process. Start by including videos to your product pages. Then, you can transfer them onto your blog or social media channels.

A product line that includes art and janitorial supplies would require passion and expertise from everyone. It would be almost impossible to show this passion. This chip is available to large brands. You can increase your informational resources and share your passion with customers and the rest of the world.

Help a worthy cause

Support a cause that you believe in to reap the rewards of shopping with your company. The following are some suggestions for people who are new to charitable work:

Choose a cause that is relevant to your brand. If your business sells pet supplies, donating a percentage of your profits or your time to the ASPCA could be a great fit. If you sell home decor, it's a smart choice to make a donation to Habitat for Humanity. No matter what your situation, you need to find a cause that is compatible with your brand and that your customers also believe in.

Highlight this cause on your website: Remind customers, especially on checkout pages and order confirmation pages that a portion proceeds to your chosen cause. If appropriate, include links to information about your chosen organization and a thank you message in the order confirmation email.

Keep in touch with your donors: After you have made your donation or spent time volunteering for your non-profit, make sure to include these activities within your customer communications. You can write a blog post or include a summary of the event in your customer newsletter.

Your small business can support a cause dear to you and your customers, which will reinforce the advantage it has over large brands. Customers want to feel good about their purchases.

Don't compete on price, but do what you can

Amazon, with its seemingly endless product range and huge popularity, can afford to offer low prices because of their razor-thin profit margins. It means that you will face a difficult task if your goal is to price-competite with them. You can still reduce prices and remain competitive, despite this difficulty.

This is about reducing costs and doing math.

Get to know your suppliers. Build a relationship with them to find out if they offer any discounts. Ask your suppliers if they can offer discounts for bulk orders. Ask your shipping provider if they can help you save money by offering other services.

Create a list with your wants and needs. Even the most modest business can cut some spending. Start by listing all the bills that you have to pay in order to keep the lights on. Next, make a list all of the expenses you must pay to keep your lights on. Then brainstorm creative ways to reduce or eliminate them.

Take a look at the individual profit margins. Some products have higher margins than others. Ask yourself if you are experiencing this.

This is the main idea: reduce your prices so that they are comparable to larger brands and leverage your overall value to justify any extra costs your customers may encounter. You too can have a fighting chance if you choose the right tools.

Believe You Can Compete With Mega Brands

Be confident in your potential as an entrepreneur. You've already lost the battle if you believe that large companies are too big for me to manage it.

Instead, you should celebrate your wins, learn from your mistakes, and continue to look for ways that you can improve your online business. You've worked hard for this moment, and you will reach new heights as your climb continues. Don't lose heart, don't quit, and don’t let yourself down.

Last Thoughts

It is not easy to compete with mega brands. This requires hard work, diligence, and smart marketing. It's not easy, but it doesn't make it impossible. You just need to take advantage of all the benefits that small businesses have.