The Cost Of Convenience: Why Supporting Small Businesses Matters More Than Ever
Convenience is king in the world of consumption. Amazon makes it so convenient to place orders that people now experience “Amazon amnesia” – forgetting about their purchases. Apps like Shein and Temu promise us the latest fashion at a fraction of the cost, often with great disappointments upon delivery. But this isn’t the real issue.
As someone deeply embedded in the sustainability space, I’ve seen firsthand the impact this shift toward convenience has had on small businesses.
When we shop for convenience, we’re not really saving a few dollars – we’re siphoning money out of our communities. Those dollars that could have gone to a local shop owner, who reinvests in their neighborhood and supports local events, are instead funneled into the pockets of distant corporations.
Rather ironically, the type of capitalism young people don’t want is the one being sold to them through their screens. These big platforms aren’t really selling us products; they’re selling us a lie that we can have it all without any trade-offs.
Measuring the Impact on Smaller Retailers and Small Businesses
Companies like Shein, Temu and even Amazon are said to take advantage of century-old international trade loopholes that allow them to ship packages worth less than $800 to the U.S. without incurring duties. This allows them to undercut local businesses that have to play by the rules. The rise of these mega-platforms has led to the closure of thousands of small stores across the country thus far in 2024. As of this year, over 3,200 smaller brick-and-mortar retailers have closed, a 24% increase from 2023. While this number includes big chains, the impact on small businesses is even more pronounced.
Small businesses, defined by the Small Business Association (SBA) as those with less than 500 employees, comprise 99.9% of all firms in the United States. These firms employ roughly 61.6 million people, supporting 45.9% of all U.S. employees. In 2023, 81% of small firms reported to the Fed Small Business survey that the rising costs of goods, services, and wages was their top challenge moving into 2024. To deal with these rising costs, over 50% of businesses planned to raise prices and/or borrow from personal funds to stay afloat.
One of the most concerning trends I’ve observed is the rise of “zombie brands.” These heavily funded brands look successful on the outside and operate direct-to-consumer. Despite their high valuations, they are unsustainable both socially and financially. Brands like Allbirds and Outdoor Voices have never turned a profit, yet they dominated the market at times. Such temporary facades of success further drain resources from truly sustainable local businesses.
What Can We Do?
As we move through different stages of life, our priorities naturally change. When we’re younger and working with limited income, saving money often comes first, leading us to choose cheaper options from platforms like Amazon and Shein. But as we grow older, we start to value our community and the impact of our purchases more. Supporting local businesses becomes an investment in the place we call home.
I’ve seen this shift in my own life. In my early twenties, I was all about finding the best deals online, but as I started to build my life and my home, I realized the importance of investing in my community. I began frequenting local stores, where I was delighted to find curated product offerings and no junk reviews. Small shops are valuable not just for the unique products they offer but for the connection to the people who run them and the sense of place they create.
If you’re ready to make those investments, next time you’re about to click “buy now” on Amazon, consider whether there’s a local store that offers the same product. Better yet, seek out refill shops where you can buy only what you need without the waste of packaging. These stores aren’t just selling products; they’re selling a philosophy of sustainability and community care.
Amazon is a godsend for people living in rural areas far from stores, but there are still plenty of ways to save money and be more eco-friendly in your purchases on these large platforms. Consider buying bulk versions of frequently-used products like soap, seasonings or dry staples. This cuts down on plastic waste and can actually save a decent bit of coin. Save and reuse your glass jars and other reusable items. The goal is discovering ways that make mindful choices stop feeling like a sacrifice.
Shifting the Small Business Mindset
We need to shift our mindset from one of short-term savings to long-term investment in our communities. This doesn’t mean you have to give up convenience altogether. It’s about finding a balance, about making conscious choices that reflect your values. Yes, you might pay a little more at your local store, but you’re investing in your community, in the people who live and work there, and in a future that values quality over quantity.
Our choices as consumers carry real weight. When we support small businesses, we’re not just spending money locally – we’re keeping our neighborhoods alive and vibrant. Let’s make the choice to invest in our communities, to keep our dollars close to home and to help small businesses thrive. It’s not just about skipping the garbage, it’s about choosing what truly enriches our lives.
Kate Assaraf is the founder and CEO of Dip.