The online market is made of millions of small businesses just like yours that seek to grow and develop. Those who reach the top of the search engine ranking do better than those who don't. Finding a differentiating strategy can help your business reach higher in the search rankings and help it stand out when compared to other businesses.
Just like there are millions of businesses in cyberspace there are also billions of online shoppers. They browse the Internet in search of products using different search strings to achieve their goals. They don't use generic searches because these result sites that don't fulfill their needs.
Specific search criteria means that small businesses should start to brand themselves by finding a niche for your products. For example, the word "soap" might have thousands of sellers but the words "organic sheep milk soap" would be fewer putting your business at the top of the options list.
Differentiating your business means finding something that separates your business form others and has practical marketing utility to draw customers and make sales. Trying to compete against larger businesses offering the same product is business suicide.
Think about what item/service you sell the most and whether or not that item can sustain your business. Sometimes you can have multiple services/products that are related. Focus on that unique skill set or product that can lead to increased awareness and interest.
The online world is fundamentally different from the brick-n-mortar world. In the physical world you can offer a variety of items/services and attract customers from the area. In the online world distance is becoming less important and specialization is more important. Make your business stand out by finding out your core value!