This episode reveals key predictions from 300 store owners about the future of ecommerce in 2026. Insights cover the potential decline of Amazon, the current limitations and overhype surrounding AI, and a crucial skill identified by merchants that is projected to significantly boost profitability by 50%. This episode is essential for DTC operators looking to contextualize current trends and strategically plan for the coming years based on peer predictions.
Andrew Youderian disappears into a cave for six weeks every year to crunch data from 300+ seven, eight, and nine-figure store owners — and comes back with the most honest read on the state of e-commerce you'll find anywhere. This year's survey has a few takeaways that sting: AI adoption hit 73% but produced zero measurable financial edge in 2025, Amazon has quietly slipped from growth engine to supplemental channel, and the single biggest profit lever isn't a tactic at all. Brett and Andrew dig into what the numbers actually say — and what operators should do about it before everyone else catches on.Inside the episode:Why Amazon's share of revenue has fallen back to 2017 levels even as more brands sell there — and the "build a brand, sell on Amazon second" shift behind itThe 92% vs. 17% gap: how store owners really feel about selling DTC versus Amazon (and why the P&L explains it — 47% COGS vs. 58%)The AI gut-check: 73% of brands "meaningfully adopted" it, so Andrew pulled their actual sales data instead of asking for ROI — here's what he foundThe financial-mastery cliff: going from a 4-out-of-5 to a 5-out-of-5 on financial fluency jumps net margins from 9.7% to 14.3% and net income growth ~50%The warehouse stat that became Andrew's most viral thread: own your warehouse and grow ~4%, lease or 3PL it and grow 30–35%The optimist vs. pessimist breakdown — conversion rate, inventory turns, and fixed overhead — and what separates the two campsWhy the future belongs to "small, durable brands" — and why the days of hacking distribution are over—Sponsored by OMG Commerce - go to https://www.omgcommerce.com/contact and request your FREE strategy session today!—Chapters:[00:00] Intro clip — Andrew on treating AI adoption as a growth tool that didn't pan out in the data[00:26] Welcome & introd