Well Made

Ep. 127 Adopting new shopping behaviors with Dan Frommer

August 26, 2020 · RSS · Apple Podcasts

For many Americans, COVID-19 lockdowns started in March, prompting a surge in ecommerce spending — five years' growth in three months. This stark jump in ecommerce has left a lot of industry experts asking how new ecommerce businesses can successfully launch in the midst of a pandemic, where does the ecommerce experience still falls short, and if the pandemic has permanently changed how we shop. 

To answer all these questions, we're talking to Dan Frommer. Dan is the founder and Editor-in-Chief of The New Consumer where he researches and writes about why and how people spend their money. (You may remember him from Episode 94.)

US ecommerce penetration (% of retail sales)

“I think that niche brands will continue to take share away from mass brands [in] the future.”

On this episode, Dan and Stephan reflect on the sudden uptick in ecommerce shopping since the start of the COVID-19 pandemic (2:14). With more people buying their groceries online, Dan discusses what's still missing from the grocery ecommerce experience and why Trader Joe's says they're not going online (8:49).

Starting a new business is never easy, but launching in the midst of a pandemic comes with its own challenges. Dan makes a case for launching, even if in-person marketing is off the table (29:29). As more folks are making purchasing decisions online, the notoriously high acquisition costs of DTC brands could continue skyrocket if companies don't get creative (24:01).

Dan talks about finding your people on the internet and the value that can come from a niche brand (31:36). We've seen huge legacy brands like PepsiCo explore direct-to-consumer recently. While DTC is barely a drop in the bucket of their overall business, Dan talks about the value this kind of direct business has for massive brands (36:18). Finally, he talks about the growth of The New Consumer and his plans to grow his audience in the future (41:30).


Also mentioned in this episode: 


You can find this and all future episodes on iTunes, Google Play, and here on the Lumi blog. This episode was edited by Evan Goodchild.

Innovative brands use Lumi to manage scalable and sustainable packaging.

Learn more →