A few nights ago, I was looking for very specific LED strips -- no waterproofing, black PCB, warm white LEDs, etc. Amazon couldn't help me, or at least, I couldn't find the item with high confidence that I'd actually get the right item after the 3 months of slow-boat China shipping.
I ended up branching out to a bunch of local 'warehouses', which are I think what you're describing: Local stores that stock and sell a small number of items that they stand behind. I passed on every single one I found because of their terrible websites, filled with popups and chat windows, and the scourge of early ecommerce: "contact us for pricing!"
This is before I ever had to enter an address and credit card number to actually buy anything.
I think the solution is somewhere in the middle. Use Amazon for what they're good at and what makes them good for your customers, but build a brand with its own trustworthiness that exists outside of Amazon.
It is something like SDCardholder.com that sells what I feel is the best card holder in the world. They have a storefront, but they use Amazon for their cart and warehouse. Monoprice has been the best place to get cables for years. I've purchased from them from both Amazon and their own storefront. Or Anker and Aukey, who have made brands around "reasonably-priced chargers that probably won't burst into flames and kill your family."
Recently, I've been getting a lot of boxes from Walmart.com after ordering from Amazon.com... and I'm okay with that. Because I didn't have to open an account with Walmart.com, but I still got the products that I wanted and a price I was okay with.
So, quality is VERY important, but don't forget about convenience.