Instant Checkout's impact
Instant Checkout functions as a conversational shopping experience where users can ask ChatGPT to help find products. ChatGPT then searches across partner platforms like Etsy and presents options, leaving users to complete purchases without leaving the ChatGPT interface.
Analysts found key limitations that might dull the impact of Instant Checkout's debut. The initial partnership with Etsy limits product selection to specialty items rather than everyday essentials.
"Etsy is a great platform if you need a needlepoint of your dog, but it's not a platform where you can very easily outsource the everyday things that you want to buy," said our analyst Zak Stambor.
Privacy concerns also remain a significant barrier, particularly around sharing payment information.
"People can trust that the AI is giving them a good recommendation, but are they going to feel comfortable with sharing a load of personal financial information with the tools?" asked Lamb. "That's going to just take a little bit longer."
Best use cases emerging
Analysts agree that the most promising applications for Instant Checkout could be gift purchases, groceries, and low-consideration items.
- Adobe Analytics data shows nearly 1 in 3 (30%) genAI shoppers already use the technology to get present ideas, making gift-buying a natural extension.
"I now plan all of my meals using ChatGPT... If there was then an option to say, 'Okay, now order all of that for Click & Collect,' I would probably do it," said Lamb shared, highlighting how the feature could integrate into grocery shopping routines.
Low-consideration items like small fashion purchases, phone accessories, and beauty products represent the most likely initial purchases through the platform, analysts say.
For retailers and brands, Instant Checkout presents a familiar dilemma: Gaining incremental sales at the potential cost of customer relationships and additional revenue opportunities.
"[Retailers and brands may] lose more than just the loyalty, they lose the possibility of upselling," said Lamb. "But I think even more significantly, they could stand to lose retail media revenue."
If consumers bypass retailer websites to shop directly through AI platforms, it could significantly impact the growing retail media sector. OpenAI has attempted to address these concerns by partnering with Stripe for payment processing, which forwards customer data to merchants, theoretically allowing them to maintain customer relationships.
A significant step forward
While ChatGPT's Instant Checkout represents a significant step toward AI-facilitated commerce, experts say its immediate impact will likely be modest. The feature may find initial success with specific use cases like gift-buying and grocery shopping, but widespread adoption faces barriers including privacy concerns, limited merchant partnerships, and entrenched shopping behaviors.
The longer-term implications could be more substantial, particularly as OpenAI expands partnerships and capabilities.
"Gen AI could be the thing that really moves the needle on voice commerce because one of the things that was holding it back was just that it was a super clunky experience," said Lamb.
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