How can you compete with Amazon.com?

How do stores compete with Amazon.com? For around half of my shopping list, my search for a competitive deal always lead me to Amazon. They are becoming a tremendous retailer of all things. It's bizarre that anyone should suggest 'Savings' on a sticker price again. I won't deny that shopping has it's own enjoyment that one has to physically 'do' to experience.

A weekend ago, Don, an engineer from a local laptop retailer, almost talked me into coming down to his store over the phone (the power of peer to peer). And yet, later, I found a competitively priced laptop with great rebates that beat Don's price and Circuit city too on Amazon.

I think for now, the best bet is to 'join' them as a retailer.