A New Sales Channel to Power the Passion Economy

An interview with former Shopify CTO, Jean-Michel Lemieux

When it comes to commerce, buying habits fall into three main categories. There are things we need, things we want, and then a third option that falls somewhere in between. Items that don’t necessarily serve a practical purpose, but which elicit a level of passion that goes far beyond mere wanting.

The intense fervor that erupts over a coveted item might seem like a thoroughly modern phenomenon, but it’s really not. It certainly predates the internet — sneaker culture has been stoking intense passions since the 1980s. And the appreciation for quality craftsmanship and a compelling story — to the point that production can’t possibly keep up with demand — is nearly as old as humanity itself. 

The internet has certainly changed things when it comes to the passion economy, but not always for the better. Despite the potential for modern technology to make in-demand purchases more convenient, it’s only created a new set of headaches and hurdles. Fans contend with bots, resellers who game the system, and complicated and clunky UX on platforms not built for heat. 

But why has it been so difficult for eCommerce platforms to get high-heat right? To help us understand, we rang up Jean-Michel Lemieux, former CTO of Shopify and founder of Build Right Side, to tell us why getting in-demand products can still feel like such an uphill battle. 

High-heat product launches deserve their own channel

As a veteran of the eCommerce world, Lemieux has witnessed the major platforms attempt to service the high-heat space — to varying degrees of success.

“Everyone wants very popular entrepreneurs to be on their platform. What I’ve learned is that it’s a very different way of selling. The mistake some brands are making is not seeing high-heat commerce as a separate channel. In-store, Facebook, Tik-Tok, eCommerce, those are different channels and different ways of selling. In-demand retail needs its own channel, too, where you can do things in a way that’s tailored to high-heat.”

It’s true that adapting existing sales channels for a type of product that plays by its own rules has become messy and clunky. But what could it look like to treat this type of commerce as a separate channel? 

It’s not just about selling

“You have to understand how high-heat sales work in practice”, says Lemieux. “When only a small percentage of fans will manage to get a product during a release, merchants have to think as much about those who get the product and those who don’t.”

When demand routinely outpaces supply to exponential degrees, only a small fraction of interested fans will successfully acquire the item. And under current models, all other interested parties — diehard fans, willing to go to extreme lengths to buy from the brand — go home empty-handed. If they missed out on the purchase, the brand hasn’t meaningfully engaged with them at all. Lemieux sees this as a massive missed opportunity.

“I’ve always been fascinated by creating the 'Disney experience' online,” he told us. “There are plenty of things you can buy at Disneyland — concessions, souvenirs — but you could easily go to Disneyland and not buy a single thing all day, and still have an amazing time. What I’m interested in is, how do we replicate that digitally?”

Priorities are different

In standard sales channels, priorities are typically centered around convenience and value. How easy is it to buy an item, and how can it be acquired at the best possible price? 

However, when it comes to in-demand retail, different things matter to fans. Because these purchases are not necessarily practical, other values apply. Convenience can actually detract from the experience — a little challenge is part of the fun and excitement. And when people are prepared to shell out hundreds or even thousands for a pair of sneakers, a limited-edition bottle of whiskey, or a signed art print, we’re clearly not talking about hunting for deals.

Instead, Lemieux points out, consumers have a different set of priorities when it comes to the world of in-demand retail. The quality of the experience matters much more than the mechanics of the purchase.

“The first thing the retailer needs to do is build trust,” he says. “Most people are not going to get their hands on a high-heat product, but they want to feel that it’s fair. And it’s hard to prove fairness in this space. Take ticketing platforms, for example. Consumers know they’re going to make more money if things aren’t fair. I bought tickets to the Stanley Cup for $500, but if I’d bought them a little later, they would have been $2000. Either way, the ticketing platform is selling it to me and profiting off of it, so what do they care if I’m treated fairly?”

According to Lemieux, after trust comes the importance of community — you know, the whole part that’s supposed to make fandom fun.

“The times I’ve stood in line for concerts, the experience in line meeting people was almost as fun as the concert. What’s that equivalent online? It’s not about checkout anymore. It’s about being with a bunch of people who care about the same things you do. How do you bring that energy into the pre-hype, the sale, and then the post, and make those fans feel like they’re having fun? Honestly, it’s all about building that connection.”

Catering to the end user

From a technology perspective, Lemieux points out that standard eCommerce platforms prioritize meeting the needs of the retailer — which doesn’t always transfer in the high-heat space.

“What a lot of platforms don’t do is treat fans as equally important as anyone else on your platform. A lot of platforms prioritize the merchants and do so much to make sure the merchant can set up easily, sell through, that things don’t crash. I get that. But at the end of the day, what’s more important is: are these fans having a really trusted, fun experience on the platform?”

Building a new sales channel

So, what does the process of building a new channel look like? In-demand brands are poised at a rare opportunity to define from scratch what selling in this space should look like and how it should work. We dug a little deeper with Lemieux about what sellers should be considering.

It’s and, not or

First, he assured us that existing ecommerce platforms need not be threatened.

“The same way your brick-and-mortar store works great with your online store, they’re connected to your business. It’s not really versus, it’s more of a complement.”

Having separate channels allows brands to tailor their efforts to what makes sense for each individual product line. Lemieux points out:

“Not all merchants have the luxury of having high-heat things for sale, but once you do, you want to start thinking about engagement, building community, and being super creative with strategy, knowing it’s not necessarily going to impact the way the other products are sold. You’re going to do something different with the different channels you have on your platform. Once you understand that, it’s not an issue of versus. TikTok never said, it’s us versus Shopify. It’s TikTok with Shopify.”

Engaging differently

A new channel means an entirely new way of doing things.

“What defines a channel is the way you sell,” Lemieux said. “People access a channel knowing what they’re going to get. I go into a store so I can feel a thing. I go online because I want the convenience of buying something quickly and easily.”

Lemieux reminds us that creating a new channel is an opportunity to think bigger and more creatively.

“It’s not even about how this channel might differentiate itself from other eCommerce platforms. It’s about differentiating from the whole idea of both buying in-store and buying from a regular online store. Totally different communications, a different signup and checkout process, a different way of interacting. You might be talking to other fans and exchanging things. Over time it’s going to evolve to be very different.”

To date, we’ve simply been trying to adapt existing solutions to the high-heat space, but to Lemieux’s point, that’s not going far enough — or taking full advantage of the opportunity. Creating a heat-specific sales channel means starting over in a way designed to make in-demand launches more accessible while also maximizing every opportunity for engagement.

Letting fans lead the way

Fans may not always feel like it, but they’re the true drivers of the in-demand product economy. As Lemieux puts it: “Fans are the lifeblood of high-heat.”

But they certainly haven’t been treated that way. For too long, consumers have been forced to accommodate clunky workarounds and poor user experiences to engage with their passions. We can change that — but we have to start by studying and understanding fan behaviors and adapting selling processes to them, rather than the other way around. 

EQL looks to the future

Our conversation with Lemieux gave us plenty to mull over. How can we help brands create the Disneyland experience online? What would the digital equivalent of a concert-line conversation look like? How do we help ensure the sale of high-heat products recenters on fun, trust, and community?

At EQL, we’re thrilled to be exploring new possibilities for this space, and can’t wait to see where its evolution takes us.