Many Heimishe Yidden sell on Amazon. Some are earning nicely, while others are struggling, as with most start-ups. But while previously, for example, a Chasidishe Yid (or Yiddene) had practically zero chances of selling glass dishes to a consumer in Boise, Idaho, now he can and does. So for us it has leveled the playing field a lot, as no one cares how you look or that you have no college degree. As long as you can deliver the goods.
So yes, many mom and pop shops are going bust, others are wising up and selling their stuff online, while many more are starting Amazon stores.