Small businesses have to compete, day in and day out, with larger, physical businesses around them—as well as with online behemoths. That competition heats up in particular during the holiday season.

Mom-and-pop shops—whether bookstores, restaurants, gas stations, car-repair shops, bakeries, bodegas, drug stores, and so on—tend to be some of the smallest business among small business. Often, they are literally owned and operated by families.

In the digital age, though, a mom-and-pop shop isn't limited to being situated on a street corner or wedged between or under larger buildings. They, too, can succeed online.

Nevertheless, a significant differentiator for them is their physical presence because shoppers crave a shopping experience—which can't quite be duplicated online.