I beat Amazon all the time on their own platform. That is, I sell the same items they sell, but for cheaper. But this is merely a tactical localized advantage.

I beat Amazon all the time on their own platform. That is, I sell the same items they sell, but for cheaper. But this is merely a tactical localized advantage. If you want to build something that beats Amazon, you need to identify what Amazon either won't or preferably can't do. Some plausible candidates: 1. Consistent prices 2. Customizable prices (ala jet) 3. Products or categories Amazon can't source (surprisingly many, there are a ton of popular items Amazon doesn't sell and a bit of sleuthing can find some of them). One subcategory of this is exclusives of existing brands and licenses, or patented products. Another, quite lucrative category is MLM stuff - it's tough to get them in bulk but the popular ones sell quite well by third parties on Amazon. 4. Trends. A small business can typically react quicker to trends. Lots of small sellers made money on fidget spinner well before big retailers did. 5. Sell to b&m, still 90% of retail. The vast majority of Amazon PL is not in stores. Another thing would be to identify Amazon's profit centers and compete there. They make a ton of money on some items, they lose a ton of money on others. You can profitably compete with the high margin items.