OpenAI has announced an innovative feature called Instant Checkout, which will allow merchants to facilitate transactions directly within ChatGPT. This new functionality will require merchants to pay a fee on completed purchases; however, it will not impact the prices that consumers see. Notably, there will be no charges for users utilizing the Instant Checkout feature, making it an attractive option for both buyers and sellers.
This strategic move by OpenAI creates a new revenue stream by leveraging the substantial user traffic on its platform. It marks a shift from the traditional subscription model that many users are familiar with. According to a recent blog post, U.S. users of ChatGPT Plus, Pro, and the free version can now make purchases directly from U.S. Etsy sellers during their chat interactions. Furthermore, OpenAI plans to expand this feature to include over a million Shopify merchants, including popular brands like Glossier, SKIMS, Spanx, and Vuori.
Starting on Monday, the Instant Checkout feature will support single-item purchases, with plans to introduce multi-item carts and additional merchant options in the future. This seamless integration aims to enhance the user experience by allowing direct purchases through ChatGPT conversations without the need for links or redirects.
Following this announcement, shares of Etsy surged by 7.3%, while U.S.-listed shares of Shopify experienced a notable increase of 4.5%. This positive market response highlights investor confidence in the potential of this new commerce feature. The integration of Instant Checkout signifies a significant evolution in AI-powered shopping, presenting new opportunities for online marketplaces.
Rafe Colburn, Etsy's Chief Product and Technology Officer, emphasized the potential of AI-powered shopping to transform the online marketplace landscape. He noted that Etsy is collaborating with a technology partner to enhance product discovery within mobile experiences, although he did not disclose the partner's name. This collaboration aims to streamline the shopping process and improve user engagement.
OpenAI also announced plans to open-source the agentic commerce protocol, which has been developed in partnership with payments firm Stripe. This protocol is the backbone of the Instant Checkout feature, ensuring secure and efficient transaction processing. By making this technology available to the public, OpenAI aims to foster innovation and collaboration within the e-commerce sector.
In summary, OpenAI's launch of Instant Checkout marks a significant advancement in the way consumers shop online. By integrating commerce directly into ChatGPT, OpenAI is not only enhancing user experience but also creating new revenue opportunities for merchants. As this feature expands, it promises to reshape the future of online shopping.
