Walmart's plan to sell products via ChatGPT has failed
What's the story
Walmart has tested the effectiveness of "agentic commerce" or in-chat purchases through OpenAI's Instant Checkout. The results were disappointing, with transactions completed directly inside ChatGPT converting at just one-third of the rate compared to those on Walmart's website. This means that moving checkout into an AI interface reduced conversion rates by a whopping 66%.
Performance review
Walmart integrated Instant Checkout in November
In November, Walmart integrated around 200,000 products with OpenAI's Instant Checkout. This allowed users to make purchases directly within ChatGPT without visiting Walmart.com. However, Daniel Danker, Walmart's EVP of product and design, said these in-chat transactions were "unsatisfying" and underperformed significantly. As a result of this disappointing performance, the firm is already pulling back from the integration.
Strategy change
OpenAI phasing out Instant Checkout
The disappointing results from Walmart's test align with a larger trend. OpenAI has started to phase out Instant Checkout in favor of merchant-controlled checkout experiences. The new strategy focuses on handing off the transaction back to retailers, instead of trying to complete them inside the AI interface. This move indicates a shift toward giving brands more control over their customers' shopping experiences.
Strategic move
Walmart to integrate its own chatbot Sparky within ChatGPT
Reflecting the shift toward merchant-controlled experiences, Walmart plans to integrate its own chatbot, Sparky, within ChatGPT. This would let the users log into their Walmart accounts, sync carts, and complete purchases within the retailer's system. A similar integration is also expected with Google Gemini.