For me, the advantage of an SBO over a big name brand or big-box ecommerce site is one word: personalization. You can’t fight them on equal footing, so why even try? Instead, shrink your world so that it’s just your business and each individual customer. Send personalized emails that ask how you can serve that customer better. Initiate suggestions on how to improve your products and services directly from your customers. Ask for referrals, and incentivize your customers to talk up your business.
And SBOs also have the advantage of being able to iterate and adapt much quicker than big brands do. So they can respond to market trends in much faster way, getting out products and services that meet the needs of their targeted audience. The takeaway? Never stop identifying what your target audience wants, because those wants will change, and small businesses that are agile will be able to respond much quicker and service that market than a big brand choked with red tape and bureaucracy.