You Can’t Beat Amazon at Being Amazon. So Stop Trying.

For smaller online retailers, competing with Amazon or Walmart can feel like an impossible game.
Amazon has built enormous advantages around product selection and convenience. Walmart has spent decades building the scale required to compete aggressively on price.
Chewy COO Scott Anderson believes retailers should stop trying to win those battles on the giants’ terms.
In a recent interview with Supply Chain Dive, Anderson argued that ecommerce retailers essentially compete across four areas: price, convenience, selection and experience. His point is that for many specialty and smaller retailers, the fourth category may offer the greatest opportunity.
If You Can’t Win on Scale, Win on Experience
Anderson knows the Amazon model from the inside.
Before joining Chewy, he spent nearly a decade at Amazon, eventually becoming a vice president overseeing transportation and customer fulfillment in North America. Today, he leads end-to-end logistics at Chewy.
His assessment is fairly straightforward.
Amazon is exceptionally difficult to compete with on selection and convenience. Walmart is exceptionally difficult to compete with on price.
But experience is different.
Smaller and specialty retailers can potentially know their customers better, personalize the relationship and pay attention to parts of the buying process that become harder to individualize at enormous scale.
And Anderson argues that one of those opportunities is hiding in a place many businesses still think of primarily as an operational expense: delivery.
Delivery Is Part of the Product
For an ecommerce company, the customer experience doesn't stop when someone clicks “Buy.”
The package still has to arrive.
Anderson points to features such as adjustable delivery windows, proof-of-delivery photos and the ability to communicate more directly about a delivery as ways retailers can differentiate. Even the box and packaging materials contribute to the experience.
That's an important shift in thinking.
A business might spend enormous effort optimizing its website, photography, checkout process and customer service, only to treat the final physical interaction with the customer as a commodity.
From the customer's perspective, however, it's all one purchase.
The tracking notification is part of the experience.
The package arriving when expected is part of the experience.
Opening the box is part of the experience.
And when something goes wrong, that becomes part of the experience too.
Your Dashboard Doesn't Tell You Everything
One of Anderson's more interesting lessons comes from his time at Amazon.
He says Amazon looked at both aggregate delivery metrics and individual customer anecdotes. When one customer's experience revealed something materially different from what the overall numbers suggested, that discrepancy was worth investigating.
That's a useful principle far beyond ecommerce delivery.
A dashboard might tell you that 97% of orders are being handled correctly.
That's valuable information.
But the remaining 3% may contain the problem that eventually becomes much larger.
A complaint that initially looks like an isolated incident could expose a broken process, confusing communication, a technology problem or an operational gap that aggregate reporting hasn't made obvious yet.
The average tells you how the business is performing. Individual customers can sometimes tell you where it is breaking.
The mistake is assuming those two sources of information are competing with each other.
You need both.
When You Find a Problem, Fix It Fast
Anderson also makes another important point: customers have limited patience when they've already told a company what's wrong.
Once a customer has identified a problem, repeatedly making the same mistake becomes much harder to excuse. His advice is to use that feedback to identify the underlying issue and build a process to address it quickly.
For a smaller business, this can actually be an advantage.
Large organizations can have layers of systems, teams and processes between customer feedback and operational change.
A smaller company can often hear something on Monday and change the process on Tuesday.
That speed matters.
The goal isn't simply to resolve an individual complaint. It's to ask whether the complaint revealed something that should be fixed for every customer who comes next.
Your Delivery Partner Is Part of Your Customer Experience
Anderson's third lesson is about the relationship between retailers and the companies delivering their packages.
He argues that businesses shouldn't simply hand over an order and treat everything that happens afterward as someone else's problem.
Retailers should communicate specifically with delivery partners about what their customers need and what problems they're trying to solve. Those conversations shouldn't revolve exclusively around finding the lowest possible shipping rate.
That's because the customer doesn't necessarily separate your business from your delivery provider.
They ordered from you.
If the delivery experience is frustrating, your brand often absorbs at least some of that frustration.
That makes delivery providers more than vendors moving boxes from Point A to Point B.
They're participating in one of the final stages of your customer experience.
Smaller Can Be an Advantage
There's a broader business lesson in Anderson's advice.
Companies often look at much larger competitors and immediately start copying what makes those competitors successful.
More products.
Lower prices.
Faster shipping.
More technology.
More automation.
But scale advantages are extraordinarily difficult to defeat by simply trying to reproduce them with fewer resources.
The better question is:
What can we do exceptionally well precisely because we aren't Amazon or Walmart?
Maybe it's deeper product expertise.
Maybe it's more responsive customer service.
Maybe it's better packaging.
Maybe it's knowing your niche extraordinarily well.
Maybe it's noticing an individual customer's problem and fixing the underlying process before hundreds of other customers encounter it.
Or maybe it's creating a buying and delivery experience that feels like it came from a company that actually knows who its customers are.
You don't necessarily have to beat the largest competitor at what they do best.
You need to give customers a compelling reason to choose you instead.


