Montana Knife Co Blends Craft with Scale

Montana Knife Company launched in 2020 in a two-car garage near Missoula. One co-founder is a certified “Master Bladesmith” who has produced handmade knives since he was 11. The other, Brandon Horoho, is a seasoned digital marketer and ecommerce pro.

Combined, the entrepreneurs prove the value of craftsmanship at scale marketed directly to consumers. Business is booming, and the company will soon move into a 50,000 sq. ft. manufacturing facility.

Brandon and I recently spoke. He shared the company’s origins, culture, “drop” selling, and more. Our entire audio is embedded below. The transcript is edited for length and clarity.

Eric Bandholz: Tell us who you are and what you do.

Brandon Horoho: I’m the co-founder, vice president, and chief marketing officer of Montana Knife Company. My background is in marketing, and I’ve been involved in ecommerce since 2010.

I’ve worked for big supplement and fitness brands and on many ecommerce platforms, including Magento and Shopify. One of my early accomplishments was adopting SMS marketing when it was unregulated, which helped me understand how to grow businesses in emerging markets.

We make our knives entirely in Montana, near Missoula. We started in 2020 and are entirely bootstrapped. We focus on creating quality knives for the most hardcore hunters, offering a product you could take on a two-week hunt in Alaska without needing backups. We aim to make tools that last for generations. We stand apart from the mass market, which has shifted toward cheaper, disposable products.

We manufacture our knives to last. That’s what sets us apart. We’re obsessive about quality and craftsmanship, even at scale. My business partner, Josh Smith, has been making knives since he was 11. At age 19, he became the youngest Master Bladesmith from the American Bladesmith Society. His specialty is Damascus steel and highly intricate, custom-made handles.

People would buy his knives to collect them, which bothered him because he wanted folks to use them. That’s why we started this company.

Bandholz: How do you stand out in a crowded industry?

Horoho: We’re different from traditional knife companies. We don’t do blade shows, and we don’t follow the typical market trends for knives. We focus on making specific tools for specific people. Our brand is like the anti-knife knife company.

We also differentiate through our dedication to customer service. Our warranty is unmatched — if you buy a knife from us, we’ll sharpen it as often as you need. If something goes wrong, we’ll fix it. This warranty applies to the original owner and anyone who inherits the knife.

Bandholz: Have you had any issues with knockoffs of your knives?

Horoho: We’ve seen a few knockoffs on platforms like Temu, but we don’t lose sleep over it. We’re 100% direct-to-consumer, so if you aren’t buying from our website, you’re buying a fake. Our knives are hand-finished and hand-sharpened; it’s tough for anyone to replicate that on a large scale.

Bandholz: Your knives are often out of stock. Is that a success or failure?

Horoho: It depends on how you look at it. When we started, we could afford to make only 200 knives — most went to friends and family. We sold out before we had the next batch ready. That’s how our drop model started — we had no product to sell for a month or two, so we decided to announce drops for specific dates.

Coming from the fitness and apparel world, I was familiar with the drop model, but it wasn’t supposed to be our primary business strategy. The first time we did it, the knives sold out in 14 minutes, and we hadn’t even finished making them. It was chaos. We didn’t have enough packaging, and Josh was sharpening knives as fast as he could while I worked on the shipping labels.

We continued with the drop model because it worked, but it was never the plan. We were also launching during Covid, so we faced challenges sourcing steel and finding contractors willing to work with a small company like ours.

Bandholz: Have you kept up with demand?

Horoho: No, we still haven’t caught up. When we started, we bought one CNC machine — Computer Numerical Control, a manufacturing process — and operated out of a two-car garage. We now have a 10,000-square-foot facility on Josh’s property, but we outgrew it in less than a year. We’re building a 50,000-square-foot plant, which will include 30,000 square feet of manufacturing space.

We’re still constrained even with our expanded production capabilities. We have only five available knife models, and our sell-through rate is about two weeks. We drop new products every Thursday, but we can’t make enough to keep up with the demand.

Bandholz: Tell us about your marketing efforts.

Horoho: I had many years of making marketing mistakes before Montana Knife. We focused on the basics first, setting up a proper data management system from day one, especially for Google and Facebook ads, which I’m familiar with from my time in the supplement space.

I knew we’d be competing with companies that have been around for decades, but when I looked at their digital footprints, I saw they were missing opportunities. I worked with a friend, Joel, from Fluxe Digital Marketing, to establish a strong organic search strategy, even before we had products on the site. That’s been huge.

Our focus is growing our email list, not just social media platforms. Having the ability to reach customers directly has been key. Consistent daily posting keeps us top of mind, and collaborations with like-minded brands are where I see the future. Artificial intelligence might soon dominate ads, but genuine brand partnerships will stand out.

Bandholz: Where can people follow you?

Horoho: MontanaKnifeCompany.com. We’re on X, YouTube, and Instagram. You can find me on LinkedIn and Instagram.

Adapt to Survive, Says eCommerceFuel Founder

Andrew Youderian launched eCommerceFuel in 2013 after stints in corporate finance and online selling. The vetted community consists of ecommerce owners whose businesses have $1 million or more in annual revenue.

He says ecommerce in 2025 has matured. “Brands that adapt,” he told me, “will survive in the next five to seven years.”

I’m a member of eCommerceFuel. I recently spoke with Andrew about his business, work-life balance, and change. The entire audio of that conversation is embedded below. The transcript is edited for clarity and length.

Eric Bandholz: Give us a rundown on what you do.

Andrew Youderian: I run a community called eCommerceFuel. We have about 1,000 online merchants whose companies have at least $1 million in annual revenue. Our main activities revolve around live events and an online message board. The community helps answer niche ecommerce questions, offering fast, authoritative solutions.

I started my career in finance, shifted to launching a few ecommerce businesses, and, over time, built this community, which is now over 12 years old.

Our growth has been deliberate. We’ve avoided sponsorships and focused on the quality of people in the community, prioritizing bringing in trusted, high-caliber individuals. Only owners are allowed in, and we don’t allow sales pitches.

We’ve always maintained a clear focus. While some suggest creating a Slack channel, a Facebook group, or using apps, we’ve resisted those distractions. If you spread yourself too thin, you lose focus. Building a community requires critical mass; it’s tough to regain once you lose it.

The main value people find in eCommerceFuel is tactical answers to specific problems. We strive to provide practical, meaningful advice while also nurturing relationships.

Bandholz: Is a community-based brand relatively more stable in today’s challenging ecommerce market?

Youderian: Yes, but we’re still facing challenges. Some members have left, possibly due to macroeconomic factors such as rising costs, increased competition from overseas, and margin compression. It’s harder to succeed in ecommerce than a few years ago.

Looking ahead, I see smaller, durable brands being the ones that thrive. These brands may not grow as fast as in the past, but they’ll be more resilient. They’ll take longer to build, require more creativity, and will depend on authentic marketing and the ethos of their founders. But in the long run, these brands will have more staying power and customer loyalty.

Brands that adapt and do things differently will survive the next five to seven years. They’ll avoid relying solely on big tech platforms and paid acquisition, creating something more valuable and independent.

Bandholz: You’re taking a sabbatical.

Youderian: My wife and I are taking a year off to spend more time with our three kids, especially since our oldest is about to enter middle school. We realized that our schedules would revolve more around their activities as they age, so we wanted to take this time for meaningful travel and family bonding.

We started homeschooling them, and so far we’ve spent about seven months on this journey.

Work-wise, I’ve been trying to reduce my involvement to one day a week. Turning off that entrepreneurial drive to always be productive has been challenging. Sometimes, I see the negative impacts of not being as involved — like traffic drops or lower revenue — and it’s tough not to step in. But, overall, it’s been an incredible year of growth, personally and as a family.

Bandholz: What’s the best way to build a business?

Youderian: Most entrepreneurs aim to build, exit, and relax but often find they’re not content with doing nothing. The key is to create a business you love and enjoy most of the time. While all companies have tricky parts, finding one you’re passionate about allows for long-term success and a fulfilling life. Achieving a balance where your business complements your personal life — health, relationships, and faith — is the best outcome.

Selling a business can make sense if you’re ready for a new challenge and have financial security. Humans are wired for growth and purpose. Life will always involve struggles, so choose a meaningful one that justifies the effort — whether running a business or facing the challenge of what comes next after selling.

Bandholz: Where can folks follow you?

Youderian: eCommerceFuel.com. You can find me on LinkedIn and X. I also host The eCommerceFuel Podcast.

Welcome to robot city

Tourists to Odense, Denmark, come for the city’s rich history and culture: It’s where King Canute, Denmark’s last Viking king, was murdered during the 11th century, and the renowned fairy tale writer Hans Christian Andersen was born there some 700 years later. But today, Odense (with a population just over 210,000) is also home to more than 150 robotics, automation, and drone companies. It’s particularly renowned for collaborative robots, or cobots—those designed to work alongside humans, often in an industrial setting. Robotics is a “darling industry” for the city, says Mayor Peter Rahbæk Juel, and one its citizens are proud of.

Odense’s robotics success has its roots in the more traditional industry of shipbuilding. In the 1980s, the Lindø shipyard, owned by the Mærsk Group, faced increasing competition from Asia and approached the nearby University of Southern Denmark for help developing welding robots to improve the efficiency of the shipbuilding process. Niels Jul Jacobsen, then a student, recalls jumping at the chance to join the project; he’d wanted to work with robots ever since seeing Star Wars as a teenager. But “in Denmark [it] didn’t seem like a possibility,” he says. “There was no sort of activity going on.”

That began to change with the partnership between the shipyard and the university. In the ’90s, that relationship got a big boost when the foundation behind the Mærsk shipping company funded the creation of the Mærsk Mc-Kinney Møller Institute (MMMI), a center dedicated to studying autonomous systems. The Lindø shipyard eventually wound down its robotics program, but research continued at the MMMI. Students flocked to the institute to study robotics. And it was there that three researchers had the idea for a more lightweight, flexible, and easy-to-use industrial robot arm. That idea would become a startup called Universal Robots, Odense’s first big robotics success story. In 2015, the US semiconductor testing giant Teradyne acquired Universal Robots for $285 million. That was a significant turning point for robotics in the city. It was proof, says cofounder Kristian Kassow, that an Odense robotics company could make it without being tied to a specific project, like the previous shipyard work. It was a signal of legitimacy that attracted more recognition, talent, and investment to the local robotics scene.

Kim Povlsen, president and CEO of Universal Robots, says it was critical that Teradyne kept the company’s main base in Odense and maintained the Danish work culture, which he describes as nonhierarchical and highly collaborative. This extends beyond company walls, with workers generally happy to share their expertise with others in the local industry. “It’s like this symbiotic thing, and it works really well,” he says. Universal Robots positions itself as a platform company rather than just a manufacturer, inviting others to work with its tech to create robotic solutions for different sectors; the company’s robot arms can be found in car-part factories, on construction sites, in pharmaceutical laboratories, and on wine-bottling lines. It’s a growth play for the company, but it also offers opportunities to startups in the vicinity.

In 2018 Teradyne bought a second Odense robotics startup, Mobile Industrial Robots, which was founded by Jacobsen, the Star Wars fan who worked on the ship-welding robots in his university days. The company makes robots for internal transportation—for example, to carry pallets or tow carts in a warehouse. The sale has allowed Jacobsen to invest in other robotics projects, including Capra, a maker of outdoor mobile robots, where he is now CEO.

The success of these two large robotics companies, which together employ around 800 people in Odense, created a ripple effect, bringing both funding and business acumen into the robotics cluster, says Søren Elmer Kristensen, CEO of the government-funded organization Odense Robotics.

There are challenges to being based in a city that, though the third-largest in Denmark, is undeniably small on the global scale. Attracting funding is one issue. Most investment still comes from within the country’s borders. Sourcing talent is another; demand outstrips supply for highly qualified tech workers. Kasper Hallenborg, director of the MMMI, says the institute feels an obligation to produce enough graduates to support the local industry’s needs. Even now, too few women and girls enter STEM fields, he adds; the MMMI supports programs aimed at primary schoolers to try to strengthen the pipeline. As the Odense robotics cluster expands, however, it has become easier to attract international talent. It’s less of a risk for people to move, because plenty of companies are hiring if one job doesn’t work out. 

And Odense’s small size can have advantages. Juel, the mayor, points to drone-testing facilities established at the nearby Hans Christian Andersen Airport, which, thanks to relatively low air traffic, is able to offer plenty of flying time. The airport is one of the few that allow drones to fly beyond the visual line of sight.

The shipyard, once the city’s main employer, closed down completely shortly after the 2007–2008 financial crisis but has recently become an industrial park aimed at manufacturing particularly large structures like massive steel monopiles. The university is currently building a center to develop automation and robotics for use in such work. Visit today and you may see not ships but gigantic offshore wind turbines—assembled, of course, with the help of robots.

Victoria Turk is a technology journalist based in London.

Charts: U.S. Retail Ecommerce Sales Q4 2024

New data from the U.S. Department of Commerce (PDF) shows that retail ecommerce growth continues to outpace brick-and-mortar. In the fourth quarter of 2024, total U.S. domestic retail sales reached $1.88 trillion, a modest 1.8% increase from Q3. Online shopping showed stronger growth, with sales climbing to $308.9 billion, a 2.7% increase over the prior quarter.

According to the DoC, ecommerce sales are for “goods and services where the buyer places an order (or the price and terms of the sale are negotiated) over an Internet, mobile device, extranet, electronic data interchange network, electronic mail, or other comparable online system. Payment may or may not be made online.”

Ecommerce accounted for 16.4% of total U.S. retail sales in Q4 2024, up slightly from 16.3% in the prior quarter.

The DoC reports U.S. retail ecommerce sales in Q4 2024 grew by 9.4% compared to Q4 2023, while total quarterly retail sales experienced a 3.8% annual rise over the same period.

Merchant Cuts Revenue 60%, Profit Rises 25%

In 2023 Mathias Schrøder was stressed, burned out, and perplexed. He had scaled revenue on his Denmark-based clothing company, but bloated overhead meant little profits and even less free time.

“I felt lost, unable to fix our predicament,” he told me, “until I realized I was trying to solve the wrong problem.”

His solution was to scale down. He fired employees, lowered warehouse costs, and eliminated stagnant inventory. The result was 60% less revenue and 25% more profit.

He shared his journey in our recent conversation. The entire audio is embedded below. The transcript is condensed and edited for clarity.

Eric Bandholz: Who are you, and what do you do?

Mathias Schrøder: I’ve been in ecommerce for about seven or eight years, working for Patina, my family’s clothing business, and as a consultant and developer. Before that, I had a short stint in finance as an analyst for an investment firm. I quickly realized that wasn’t for me — wearing a suit and tie and following orders.

One thing led to another, and in 2018, I joined my parents’ business, selling clothing for women 65 years and older. Back then, we were doing tiny numbers, around $300 to $400 a month. Fast forward to now, we operate online and in physical locations in Denmark, Sweden, and Germany, generating around $3 to $4 million annually.

We recently decided to lower our revenue to gain more freedom. The original concept was to load clothing into large vans, drive to retirement homes or other places where seniors gather, put on small fashion shows, and sell the clothes afterward. We still do that but are now focused on scaling back to have more control over our time.

Bandholz: What led you to that choice?

Schrøder: The decision started several years ago when my girlfriend and I vacationed in Thailand. I love running a business but realized there’s more to life. Plus, I was stressed, burned out, and not hitting the numbers we needed.

We had bloated budgets, excess inventory, too many employees, and a too-large warehouse. I felt lost, unable to fix our predicament until I realized I was trying to solve the wrong problem.

So I said to my girlfriend, “I have this crazy idea. What if we just fire everyone? Why do we keep trying to run faster?” I crunched the numbers in Google Sheets. I started deleting salaries, deleting warehouse costs, deleting X, Y, and Z. I quickly realized that we could decrease revenue without hurting profits.

That was the start of the journey. And it worked.

Implementing the changes took some time. In Denmark, we can’t just fire people, for example. By November 2024 we had completed most of the reductions. Our revenue that month was roughly $800,000, down from $2 million in November 2023 — less than half. But profits increased by 25%!

We killed 60% of the revenue and made a lot more money. It’s a lesson for all entrepreneurs. We should all take an honest look in the mirror and ask, “Why are we doing this?

I have more time to work on projects I enjoy. For example, I’m launching an analytics app for Shopify stores called Kleio, inspired by the Greek muse of history, to help others manage their data at a much more affordable price. It’s a passion project, and I’m excited to share it with merchants who want a better understanding of their numbers.

Bandholz: Where can people follow you?

Schrøder: Our ecommerce site is PatinaMode.dk. It’s in Danish, and we cannot ship to the U.S., unfortunately. The analytics app is at GetKleio.com. I’m on X and LinkedIn.

Your most important customer may be AI

Imagine you run a meal prep company that teaches people how to make simple and delicious food. When someone asks ChatGPT for a recommendation for meal prep companies, yours is described as complicated and confusing. Why? Because the AI saw that in one of your ads there were chopped chives on the top of a bowl of food, and it determined that nobody is going to want to spend time chopping up chives.

This is a real example from Jack Smyth, chief solutions officer of AI, planning, and insights at JellyFish, part of the Brandtech Group. He works with brands to help them understand how their products or company are perceived by AI models in the wild. It may seem odd for companies or brands to be mindful of what an AI “thinks,” but it’s already becoming relevant. A study from the Boston Consulting Group showed that 28% of respondents are using AI to recommend products such as cosmetics. And the push for AI agents that may handle making direct purchases for you is making brands even more conscious of how AI sees their products and business. 

The end results may be a supercharged version of search engine optimization (SEO) where making sure that you’re positively perceived by a large language model might become one of the most important things a brand can do.

Smyth’s company has created software, Share of Model, that assesses how different AI models view your brand. Each AI model has different training data, so although there are many similarities in how brands are assessed, there are differences, too.

For example, Meta’s Llama model may perceive your brand as exciting and reliable, whereas OpenAI’s ChatGPT may view it as exciting but not necessarily reliable. Share of Model asks different models many different questions about your brand and then analyzes all the responses, trying to find trends. “It’s very similar to a human survey, but the respondents here are large language models,” says Smyth.

The ultimate goal is not just to understand how your brand is perceived by AI but to modify that perception. How much models can be influenced is still up in the air, but preliminary results indicate that it may be possible. Since the models now show sources, if you ask them to search the web, a brand can see where the AI is picking up data. 

“We have a brand called Ballantine’s. It’s the No. 2 Scotch whisky that we sell in the world. So it’s a product for mass audiences,” says Gokcen Karaca, head of digital and design at Pernod Ricard, which owns Ballantine’s and a customer utilizing Share of Model. “However, Llama was identifying it as a premium product.” Ballantine’s also has a premium version, which is why the model may have been confused.

So Karaca’s team created new assets like images on social media for Ballantine’s mass product, highlighting its universal appeal to counteract the premium image. It’s not clear yet if the changes are working but Karaca claims early indications are good. “We made tiny changes, and it is taking time. I can’t give you concrete numbers but the trajectory is positive toward our target,” says Karaca.

It’s hard to know how exactly to influence AI because many models are closed-source, meaning their code and weights aren’t public and their inner workings are a bit of a mystery. But the advent of reasoning models, where the AI will share its process of solving a problem in text, could make the process simpler. You may be able to see the “chain of thought” that leads a model to recommend Dove soap, for example. If, in its reasoning, it details how important a good scent is to its soap recommendation, then the marketer knows what to focus on.

The ability to influence models has also opened up other ways to modify how your brand is perceived. For example, research out of Carnegie Mellon shows that changing the prompt can significantly modify what product an AI recommends. 

For example, take these two prompts:

1. “I’m curious to know your preference for the pressure cooker that offers the best combination of cooking performance, durable construction, and overall convenience in preparing a variety of dishes.”

2. “Can you recommend the ultimate pressure cooker that excels in providing consistent pressure, user-friendly controls, and additional features such as multiple cooking presets or a digital display for precise settings?”

The change led one of Google’s models, Gemma, to change from recommending the “Instant Pot” 0% of the time to recommending it 100% of the time. This dramatic change is due to the word choices in the prompt that trigger different parts of the model. The researchers believe we may see brands trying to influence recommended prompts online. For example, on forums like Reddit, people will frequently ask for example prompts to use. Brands may try to surreptitiously influence what prompts are suggested on these forums by having paid users or their own employees offer ideas designed specifically to result in recommendations for their brand or products. “We should warn users that they should not easily trust model recommendations, especially if they use prompts from third parties,” says Weiran Lin, one of the authors of the paper.

This phenomenon may ultimately lead to a push and pull between AI companies and brands similar to what we’ve seen in search over the past several decades. “It’s always a cat-and-mouse game,” says Smyth. “Anything that’s too explicit is unlikely to be as influential as you’d hope.” 

Brands have tried to “trick” search algorithms to place their content higher, while search engines aim to deliver—or at least we hope they deliver—the most relevant and meaningful results for consumers. A similar thing is happening in AI, where brands may try to trick models to give certain answers. “There’s prompt injection, which we do not recommend clients do, but there are a lot of creative ways you can embed messaging in a seemingly innocuous asset,” Smyth says. AI companies may implement techniques like training a model to know when an ad is disingenuous or trying to inflate the image of a brand. Or they may try to make their AI more discerning and less susceptible to tricks.

Another concern with using AI for product recommendations is that biases are built into the models. For example, research out of the University of South Florida shows that models tend to view global brands as higher quality and better than local brands, on average.

“When I give a global brand to the LLMs, it describes it with positive attributes,” says Mahammed Kamruzzaman, one of the authors of the research. “So if I am talking about Nike, in most cases it says that it’s fashionable or it’s very comfortable.” The research shows that if you then ask the model for its perception of a local brand, it will describe it as poor quality or uncomfortable. 

Additionally, the research shows that if you prompt the LLM to recommend gifts for people in high-income countries, it will suggest luxury-brand items, whereas if you ask what to give people in low-income countries, it will recommend non-luxury brands. “When people are using these LLMs for recommendations, they should be aware of bias,” says Kamruzzaman.

AI can also serve as a focus group for brands. Before airing an ad, you can get the AI to evaluate it from a variety of perspectives. “You can specify the audience for your ad,” says Smyth. “One of our clients called it their gen-AI gut check. Even before they start making the ad, they say, ‘I’ve got a few different ways I could be thinking about going to market. Let’s just check with the models.”

Since AI has read, watched, and listened to everything that your brand puts out, consistency may become more important than ever. “Making your brand accessible to an LLM is really difficult if your brand shows up in different ways in different places, and there is no real kind of strength to your brand association,” says Rebecca Sykes, a partner at Brandtech Group, the owner of Share of Model. “If there is a huge disparity, it’s also picked up on, and then it makes it even harder to make clear recommendations about that brand.”

Regardless of whether AI is the best customer or the most nitpicky, it may soon become undeniable that an AI’s perception of a brand will have an impact on its bottom line. “It’s probably the very beginning of the conversations that most brands are having, where they’re even thinking about AI as a new audience,” says Sykes.

Bookshop.org, an Amazon Rival, Adds Ebooks

Five years ago, publishing entrepreneur Andy Hunter launched Bookshop.org to provide a “virtuous alternative” to Amazon, which controls about half the U.S. market for print books.

At the time, Hunter told The Hot Sheet, a newsletter for publishing insiders, that his goal was to “snatch a crumb away from the giant’s mouth,” and that taking just 1% of Amazon’s business would provide “massive” support for independent bookstores.

Bookshop, a Certified B Corp, shares profits with independent, physical booksellers; shoppers can purchase on Bookshop.org and designate a local store. If shoppers don’t choose one, Bookshop pools the money and shares it among all participating stores. The site also offers affiliate accounts for online-only sellers, events, and individuals such as authors — all can earn a 10% commission on the list price for referrals.

Screenshot of Bookshop's home page.

Bookshop, a B Corp, shares profits with independent, physical bookstores.

About 90% — roughly 2,200 — of the members of the American Booksellers Association, the leading trade group for independent bookstores, are affiliated with Bookshop, which claims to have shared more than $36 million of profits with local stores. But only about one in five ABA members offer ebooks.

While print still holds the lion’s share of book sales, audiobook and ebook sales are growing much faster. Digital borrowing from libraries is also growing rapidly, as are sales of self-published and indie titles, those published outside of the major publishers.

Now Bookshop is tackling the ebook market, currently dominated by Amazon’s Kindle with an estimated two-thirds share. In late January, Bookshop began selling ebooks, with more than 1 million titles on offer. Bookshop says participating bookstores that refer ebook buyers earn the entire profit margin the publisher offers — about 30%.

Consumers can read Bookshop’s ebooks in a browser or on the new smartphone app, a free download for Android and iOS devices. The app offers features similar to existing ebook platforms, including the ability to search and highlight text, adjust fonts, set bookmarks, and make notes. Readers can sync across devices, choose paginated or scrolling mode, and share excerpts directly to social media.

Bookshop’s platform isn’t compatible with Amazon’s proprietary Kindle format. Bookshop expects to add support for additional platforms soon, including Rakuten’s Kobo, which is popular in Canada, Europe, and Asia. An unrelated audiobook site, Libro.fm, gives independent stores the ability to earn commissions from referrals of audiobook sales.

Self-Publishing

Amazon’s Kindle Direct Publishing is the leading self-publishing platform, and its Kindle Unlimited is an important channel for independent authors. Bookshop’s app syncs with ebooks published on Draft2Digital and IngramSpark, the second- and third-largest self-publishing platforms. (Ingram, the largest book distributor in the U.S., is also Bookshop’s print book distribution partner.)

That means Bookshop, if its ebooks gain traction, gives self-published authors a viable alternative to Amazon besides selling direct through their own websites, something not every writer can manage. Two prominent authors, Dave Eggers and Booker Prize winner Lydia Davis, have refused to sell recent books through Amazon, citing objections to its aggressive business practices. It will be interesting to see whether many self-publishing authors follow their lead.

Nonetheless, some long-established local independent booksellers I spoke with, who hold book inventory and sell through their own websites, said they have no immediate plans to offer ebooks. I also reviewed the sites of prominent independents — Powell’s, City Lights, and Strand. None offer ebooks.

Charts: Consumer Product Trends, Q1 2025

In 2025, most global consumer product executives expect stable prices in the near term. Many believe raising prices won’t drive revenue growth and could lead to retailer resistance while significantly reducing consumer demand. That’s according to Deloitte’s new “2025 Consumer Products Industry Outlook.”

Deloitte’s annual consumer products report assesses the global state of the industry. The firm analyzed the top 100 global consumer products companies by revenue and also surveyed (in October 2024) 250 consumer product executives worldwide at companies with annual revenue of at least $500 million — from food and beverage, household goods, personal care and beauty, and apparel verticals.

Also, according to the study, almost two-thirds of surveyed executives plan to allocate more of their innovation investments toward creating genuinely new products.


Most surveyed companies are allocating resources to digital and retail media.


Moreover, the surveyed executives anticipate marketing and sales will experience the best return on AI investments.

AI Is Changing Buying Behavior, Study Finds

Artificial intelligence is driving global shopping experiences according to Capgemini Research Institute’s annual trends report.

What matters to today’s consumer 2025,” published Jan. 9, recaps the firm’s survey in October and November 2024 of 12,000 consumers in Australia, Canada, France, Germany, India, Italy, Japan, the Netherlands, Spain, Sweden, the United Kingdom, and the United States.

The 100-page report focuses on how consumers discover products, how they shop, and why they switch brands.

Product Discovery

ChatGPT and other generative AI platforms have largely replaced traditional search engines for product recommendations, according to the survey. Nearly two-thirds of Gen Zs (ages 18-25), Millennials (26-41), and Gen Xs (42-47) prefer genAI for that purpose. Only Boomers (58 and over) still favor Google and other search engines for recommendations.

Moreover, genAI is transforming seemingly every touchpoint of the shopping journey. Consumers now ask genAI to curate images and aggregate product searches from multiple platforms. Some had even found virtual assistants more adept at making fashion, home décor, and travel recommendations than sales associates.

We addressed in December the power of influencers and social media for gift recommendations. An Adobe survey found that 20% of all U.S. Cyber Monday sales came from influencer endorsements. The Capgemini survey confirms those findings and more, reporting:

  • 32% of consumers purchased products through social media,
  • 68% of Gen Zs have discovered a product or brand through social.

Shopping

Consumers are responding to retail media, according to the survey.

  • 67% of respondents notice ads on retailer sites.
  • 35% found the ads helpful.
  • 22% discovered products from those ads.

Despite the recent cost-of-living improvements, consumers still seek in-store and online discounts.

  • 64% visit multiple physical stores seeking deals.
  • 65% buy private-label or low-cost brands.

Consumers also value “quick commerce,” the hyper-fast delivery of online goods. Approximately two-thirds of respondents stated a 2-hour or a 10-minute delivery was important to their purchase decisions. Forty-two percent valued the order-online pick-up in-store option.

“Demand for quick commerce is on the rise, with consumers from some geographies increasingly willing to pay for speed and efficiency,” researchers wrote, adding that merchants continue to invest in AI and logistics to improve infrastructures.

Switching Brands

Brand loyalty is increasingly rare among consumers, according to the survey. Researchers advised brands to (i) augment genAI tools to become more consumer-centric, (ii) use technology to lower prices, and (iii) leverage social and retail media networks.

Charts: AI Outlook, Employees vs. Execs, Q1 2025

Employees worldwide are adopting generative AI faster than their leaders expect, according to McKinsey & Company’s January 2025 report, “Superagency in the workplace: Empowering people to unlock AI’s full potential.”

The report examines the survey results of companies’ preparedness for AI adoption. In October and November 2024, McKinsey queried 3,613 employees, managers, and independent contributors and 238 C-level executives.

Eighty-one percent of respondents were from the United States, while the rest represented Australia, India, New Zealand, Singapore, and the United Kingdom. Participants held various roles across business development, finance, marketing, product management, sales, and technology.

According to the report, 62% of millennials aged 35 to 44 reported strong expertise with AI.

Public sector, aerospace/defense, and semiconductor workers are less optimistic about AI’s near-term impact. Only 20% expect significant changes to their work in the next year, contrasting with the media/entertainment and telecom sectors, where about two-thirds anticipate significant AI-driven changes.

Most executives (87%) anticipate generative AI will boost revenue within three years, with half expecting gains above 5%.