Translation: don't sell commodities. If people can find what you're selling elsewhere with the same level of quality, then you can only compete on price and location. That's a tough business. It's easier to differentiate yourself from your competition by doing something they can't do, or by using style, design, and aesthetic coughapplecough to set your products apart.

In software your competition is working on providing a huge featureset just like you are. What can you do on a level that is not just a laundry list of features that can set your software (or site) apart? Look to the meta-features, the implicit features of every product: performance, robustness, security, usability, fit-and-finish, etc.