I recently came across an intriguing development: OpenAI is revamping its strategy on how ChatGPT handles online shopping. Initially, the plan was to allow purchases directly through ChatGPT, but now it seems transactions will be moving to retailer apps connected via ChatGPT, according to a report from The Information.
Why I find this important: ChatGPT is striving to evolve beyond just a discovery tool. While it excels at helping people find products, actual purchases aren’t keeping pace. This trend indicates that the power of AI is currently more influential in the product consideration phase rather than conversion.
What happened: OpenAI initially intended to let users buy products directly from ChatGPT’s search results. However, an OpenAI spokesperson has stated that their Instant Checkout service will now be handled through Apps within connected services rather than ChatGPT itself.
- The focus will now shift to enhancing product search and discovery capabilities within ChatGPT.
- OpenAI will also continue its collaboration with Stripe on the Agentic Commerce Protocol to support these app-based transactions.
The shift: Research by OpenAI showed that while users explore products using ChatGPT, they often finalize purchases elsewhere. According to the report, only a handful of merchants fully utilized the native ChatGPT checkout feature.
- In September, OpenAI had touted Instant Checkout as a significant opportunity, mentioning plans for U.S. users to purchase items from Etsy and future expansions to Shopify and beyond.
In the meantime, Shopify’s president, Harley Finkelstein, recently noted that only about a dozen Shopify merchants are utilizing AI tools. This number is quite small relative to Shopify’s entire merchant base, despite the company’s support for integrations with ChatGPT, Gemini, and Copilot.
What I’m watching for: Will OpenAI manage to elevate ChatGPT’s value as a platform for discovering products without being involved in the actual transaction? Additionally, how will OpenAI’s approach to commerce align with its advertising goals? If transactions remain external, monetizing product discovery via ads might become crucial.
Why the change is occurring: According to Leigh McKenzie, director of online visibility at Semrush, two factors are hindering agentic commerce: infrastructure and trust. Normalizing real-time catalogs across vast SKU numbers is a complex issue Google tackled with Merchant Center. Moreover, consumers tend to trust familiar checkout processes like Apple Pay, Google Wallet, and Amazon.
Further reading: To dive deeper, check out the full report on OpenAI’s scaled-back shopping plans for ChatGPT, available via The Information (subscription required).
Inspired by this post on Search Engine Land.
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