ChatGPT now lets you shop products without leaving the chat
What's the story
OpenAI has launched a new feature called Instant Checkout, enabling users to buy products directly through its AI chatbot, ChatGPT. The feature currently supports single-item purchases from US-based Etsy sellers and is available for US-based ChatGPT Plus, Pro, and Free users. The launch of Instant Checkout has resulted in a nearly 16% spike in Etsy's shares and over a 6% increase in Shopify's stock value.
Revenue model
OpenAI to charge fees for transactions
OpenAI will charge a fee for transactions completed through ChatGPT, making Instant Checkout a potential new revenue stream for the start-up. However, the company has not disclosed how much these fees are as they are based on confidential contracts with Etsy and Shopify. Michelle Fradin, OpenAI's product lead for ChatGPT commerce, explained that their vision is to make ChatGPT not just an information provider but also a tool to help users accomplish real-world tasks.
Expansion strategy
Instant checkout powered by Agentic Commerce Protocol
OpenAI intends to expand Instant Checkout's capabilities by introducing multi-item carts and expanding its geographical reach. The feature is powered by OpenAI's Agentic Commerce Protocol, a technology developed in collaboration with fintech firm Stripe. This protocol enables users to complete transactions directly with merchants through ChatGPT and is being open-sourced to help merchants build integrations faster and allow developers explore different use cases.
User experience
How does instant checkout work?
When a user asks for gift ideas or running shoes under $100, products that support Instant Checkout will show a "Buy" button. Tapping on it takes the user to confirm their order, shipping, and payment details directly in chat. The seller then processes the order, shipping, and fulfillment as they normally would with ChatGPT acting as a middleman providing buyer information to the seller.