I'm seeing more and more competition from Amazon every day from brick and mortar stores improving their on-line presence. Amazon is great but in many cases I either want to see what I'm buying before I get it (think clothing and other items where how it looks is just as important as function) or, more likely, I want something right away and I can order something on-line to pick it up at a local store.
What I can do is shop online for something at home and then if I decide to buy then I can drive to the store to pick it up. If I decide I need to see how it looks in real life first before I buy then I can see if the item I want is in stock before I drive out to the store.
What is interesting is that even a local grocery chain is getting in on this. They offer home delivery on purchases now. If you buy over a certain amount they'll deliver for free. Amazon has been in on this market for a while, selling things like diapers and laundry detergent. What I see now is the grocery store getting in on this while also offering perishables for delivery. People might buy laundry detergent from Amazon but they aren't going to get ice cream from them any time soon.
I like Amazon and I'd buy from them again. What I find myself doing though is shopping on many other websites to compare prices, see who has something in stock, etc. Around here Best Buy had something of a captive market on electronics and their prices reflected that. Recently though they've had to compete with the likes of Amazon and, again, their pricing shows this. I've actually avoided Best Buy for a long time knowing I'd likely get ripped off. I've found myself shopping there again now that I can order on-line and pick up in the store. I will sometimes see a small premium in price for this convenience and I'll pay it if the convenience matches the price difference.
I guess one could say the price premium at Best Buy was always the cost of convenience since the nearest competition in a brick and mortar store meant an hour of driving. Calling someone on the phone to buy something and having it delivered in a couple days existed since there were telephones. What has changed though is that phones now fit in a pocket, and delivery times got shorter. This meant that brick and mortar stores have had to improve their online presence or go out of business, and online stores have to find a way to leverage this new speed in delivery to keep up.
If you aren't seeing this competition against Amazon then I suspect you are looking in the wrong places for it.