As a regional economic center, it offers a mixture of private sector business and traditional subsistence activities found nowhere else in the region Kotzebue is the service and transportation center for the eleven villages in the Northwest Arctic Borough. It has a healthy cash economy, a growing private sector, and a stable public sector. Due to its location at the confluence of three river drainages, Kotzebue is the transfer point between ocean and inland shipping Due to its location at the confluence of three river drainages, Kotzebue is the transfer point between ocean and inland water shipping and also the air transport center for the region.

Kotzebue has several restaurants, grocery stores, churches, and an auto parts store. Maniilaq Association is headquartered in Kotzebue, and most of the organization's facilities are located in the village. The City of Kotzebue runs a Family Entertainment center that provides a safe, drug, alcohol, and tobacco free environment with movies, dances, video games, pool tables, concessions and special events for children and teenagers. The city has several safe playgrounds and softball field.