The New York Times reported on its front page this morning that Walmart and Amazon is in an all out price war. Target is joining in too as retailers fight not to cede market share with others. This is old news! If you think this is not affecting you small online business, it is. Online marketers have been in a discounting double death grip since the recession began. Aggressively bidding higher on search engines to gain, keep and hold market share close.

There is only one solution: Change the game by manufacturing something unique and desirable, preferably niche market oriented.

The quick fix of broadening product categories to increase average sales value is a non-starter – it simply places you smack dab in the same situation again with larger competitors.

And, this solution as any major business solution demands investment and time, read: risk taking. But it must be done because 1% margins are not sustainable. Even by the big boys.