Conversely, maybe it's important for both big and small businesses to realize that investing in your online presence and building out a high-quality local delivery network is much more important than the high-rent place on Main Street?
A lot of the reasons I buy on Amazon are that it offers a much more pleasant experience. In fact, if you go to the manufacturers' sites for a lot of the products Amazon sells, they have a slow checkout process, scammy discount codes and email signup incentives, and generally optimize for consumer lock-in rather than getting the product to the consumer quickly. Imagine Google if it had popped up a discount code for "Get 200 searches at 15% off!" every time you searched for something, and think of how successful they would be if they did that.
As for a lot of small-time local shops I know, they seem to place an unduly high value on prime real estate, and their websites are at the level of “My nephew says he knows Dreamweaver”.
In summary, I am not super surprised they are being beaten out by Amazon, and it is unclear to me as to why I should subsidize their bad web design and reluctance to invest in building a consumer-friendly online experience.