🚨 My Shopify shares just went up a million bucks today (bait but true) ChatGPT just became a shop 1 . Shopify + OpenAI = you can now sell directly inside ChatGPT 2. OpenAI just launched Instant Checkout with Shopify 3. You can now ask, see, and purchase all inside the browser In my opinion, this is the most disruptive move in e-commerce in years Why? Because it totally collapses the journey: Discovery Buying Transaction All in one place Here’s the opportunity I see: If you’re not on Shopify, you’re holding a massive Achilles heel in this e-commerce battle. The advantage just moved even further in Shopify’s favor The play now? Find incumbent brands not on Shopify and go after that market Focus on ranking through ChatGPT because the tsunami of traffic is shifting from Google Search into ChatGPT first And there’s another angle… this is going to put huge pressure on multi-brand retailers. Why? Because ChatGPT can now build the “whole outfit” in one flow. Sneakers from one Shopify store, headwear from another, a t-shirt from another. Whoever has the best product and positioning gets the sale This is a paradigm shift. Literally search the product and purchase all inside the browser What do you think? Am I overhyping it or is this exactly how we’ll all be shopping in the near future?
This is brilliant for Shopify and OpenAI, and possibly even for customers. I'm less convinced it's brilliant for brands. After years leading ecommerce and digital strategy for fashion/lifestyle brands, here's what concerns me: this shifts power even further away from brands. Discovery happens in ChatGPT. Purchase happens in ChatGPT. The brand becomes... a fulfillment center? The platform wins. The customer wins on convenience. But brands lose the very thing they need most - the ability to bind customers to them, not just fulfill orders. The entire playbook has been about owning the customer relationship - CRM, loyalty programs, brand experiences. This model says: 'Customers don't come to you, they come to the platform. You just ship the product.' That's a brutal business model for brand-building. Is the answer to optimize for AI search and hope you're the 'best positioned' SKU in the moment? Or is there a completely different game brands need to be playing?
I would still trust what my friends, family, peers and classmates are buying over AI right now
I agree with everything other than product and positioning. Whoever has the best metadata structure wins. If anything this makes product quality less relevant and positioning irrelevant.
While this discovery route is sure to take off, for many products, especially higher ticket, what makes you think chatGPT knows what it’s talking about? It just has marketing data and reviews to go through like anyone else, but it doesn’t know what best through actual experience with the product. It can only regurgitate what others have said in the digital public realm, and what the retailer has disclosed. Have you ever been to a restaurant and ask the server about a dish and they tell you “i don’t eat fish (or meat or whatever ), but it’s pretty popular!). And I think, well mayonnaise is pretty popular and also disgusting and doesn’t belong anywhere near seafood. Basically, I need more info before making my decision and I know I’m going to have to extract it through the typical means of understanding where products are made, where they’re sold, who has a good warranty or return policy, who has good customer service, who gets styling combos and aesthetic, etc etc etc. A website or retail experience can make that clear, where checking out on a janky website through ChatGPT might sound slick, but might be full of misinformation and landmimes about the terms of my purchase.
Huge news and one we're following closely at Parabola. Traffic is certainly shifting away from Google first and this is a smart collaboration to capture that buyer intent. I'll be curious how buying patterns through OpenAI difer from the existing store process and how this impacts ops for the individual stores in fulfillment, inventory management, etc.
I feel this "conversational shopping experience" is applicable to only a subset of products or use-cases. Browsing products on a market is thousands years old concept, it is important for how human brain works. Now for buying something that requires a lot of research while I don't really care about the topic that much, relying on a personal AI shopper sounds fantastic - just give me the best offer based on the data you have. On the other hand, there are multiple other products that I would still prefer to shop myself because I like the experience, or I need to explore and understand the options on my own. Finally, there is a question of bias and trust: if an AI-powered agent takes billions of dollars to train and is owned by a corporation with its own commercial incentives, how do we make sure its recommendations are truly in the buyer’s best interest and not subtly optimized for profit elsewhere?
Google shaking in their boots rn
we gone hallucinated shop`s now, what can go wrong
Shopify President
1moOur job is to keep merchants a step ahead. This is what that looks like in real time. We’re here to make commerce better. Period.