ChatGPT is increasingly becoming a super app. In just three years, it has evolved from a simple AI chatbot into a comprehensive assistant. Now, OpenAI has set its sights on e-commerce, recently launching a feature called "Instant Checkout," allowing users to complete purchases within ChatGPT without having to go to third-party e-commerce platforms like Amazon.
Currently, ChatGPT's instant checkout feature is only available on Etsy, North America's largest marketplace for handmade goods. However, OpenAI has confirmed that over one million Shopify merchants, including Glossier and Spanx, will soon be able to access it. While leading e-commerce platforms like Amazon and eBay haven't yet integrated it, international e-commerce practitioners are already hailing ChatGPT as a game-changer.
So what’s the magic of instant checkout? In the demo DEMO released by OpenAI, when a user asks ChatGPT, “Can you help me find a great housewarming gift for a friend? Maybe handmade ceramic tableware, white and brown, under $100?”, ChatGPT can not only give suggestions directly, but also purchase the products of merchants on Etsy in one step.
Simply put, after a user describes what they want to ChatGPT, ChatGPT will respond with text recommendations for the most relevant products. Compared to the shopping feature released by OpenAI this spring, Instant Checkout represents a revolution in the shopping experience. Previously, OpenAI only allowed users to search for products and view product information through ChatGPT, and the AI's recommendations would link to the merchant's website, forcing users to complete transactions outside of the platform.
What are the drawbacks of completing transactions off-site through links? In fact, WeChat has a lot to say on this issue. On May 20, 2021, WeChat announced that it would no longer provide "Mini Program Open App Technical Service" due to a large number of user complaints. During the use of mini programs, the normal use process would be blocked and directed to jump to the app, which seriously affected the user experience of mini programs.
However, the reality is that the act of redirecting WeChat traffic leaks, leading to a degree of "pipelining." With the widespread adoption of mobile internet, WeChat has become a new generation of internet infrastructure, inherently subject to the risk of being piped. To avoid being used solely as a traffic diversion tool, WeChat has continuously expanded its functionality with the launch of Moments, Official Accounts, and Mini-Programs, keeping users within the WeChat ecosystem as long as possible.
OpenAI clearly wants ChatGPT to become the infrastructure of the AI era, but it also doesn't want to be a pipeline itself. This "closed-loop" approach led them to launch the instant checkout feature. Furthermore, allowing users to shop directly through ChatGPT also has profit considerations, as it represents a huge business opportunity. ChatGPT drives massive traffic to Etsy and Shopify, making it logical for them to take a cut, similar to the logic behind Apple's App Store.
At the same time, e-commerce sellers, hungry for traffic, are also hoping for a new customer acquisition channel, which is why overseas e-commerce practitioners are cheering. Unlike the domestic e-commerce market, which is dominated by centralized platforms like Taobao, JD.com, and Pinduoduo, the overseas e-commerce market is decentralized, with a large number of independent e-commerce websites outside of Amazon.
Compared to Amazon, eBay, and Bonanza, the biggest challenge for independent e-commerce sites isn't uncompetitive pricing, but a lack of influence. Sellers on independent sites are often enthusiastic about traffic investment. For example, Meta's social platform, Facebook, stands out for its ability to help sellers convert public traffic into private traffic.
In the current landscape, Google Search and Amazon have become the starting points for overseas consumers' shopping behavior. Both have been accused of exploiting their dominance to favor their own products or partners. With the advent of ChatGPT, a new channel, it's no wonder overseas e-commerce sellers are drawn to its 700 million weekly active users. Even more encouraging for e-commerce sellers is that since June of this year, the proportion of female active users on ChatGPT has surpassed that of male for the first time.
But why is OpenAI so sure that ChatGPT's instant checkout feature will be popular with users? Michelle Fradin, OpenAI's ChatGPT business lead, said they observed that a large number of user questions were related to shopping. These questions could be very specific, such as "Help me find a pair of black boots," or more general, such as "How to plan a birthday party for 12 children."
Based on user needs, OpenAI hopes to make the entire shopping journey easier for users in ChatGPT, while also providing merchants with a way to directly convert user inquiries into orders. In a sense, ChatGPT's instant checkout feature is a worthy successor to the previously exposed Silicon Valley AI scam "Nate," which focused on "using AI technology to simplify the shopping process." With a simple "click," the AI can complete the purchase on the user's behalf on any e-commerce website, eliminating the tedious checkout process and requiring no human intervention.
Unlike the domestic market, overseas online payment platforms face fragmented channels and incompatible technical systems, making the online shopping experience for overseas consumers far less convenient than in China. Therefore, "one-click ordering" is a positive development for overseas consumers. Furthermore, the act of redirecting to another platform can dampen consumers' purchasing desire. After all, redirecting to another platform means waiting, and this time can dampen their shopping enthusiasm and affect their purchasing decisions.
With Instant Checkout, ChatGPT users can click the "Buy" button in the AI's response and confirm their order, shipping, and payment details without interrupting the conversation. This significantly shortens the consumer's purchasing decision path, allowing them to complete impulse purchases without realizing it. Making it easier for consumers to spend money is the reason why overseas e-commerce practitioners welcome ChatGPT's Instant Checkout feature.
This article comes from the WeChat public account "Sanyi Life" (ID: IT-3eLife) , author: Sanyijun, and is authorized to be published by 36Kr.
