Shopify will soon bring its merchants’ products into ChatGPT through a partnership with OpenAI, as the chatbot developer rolls out in-app shopping for the first time.
OpenAI introduced a new “Instant Checkout” feature to its consumer chatbot today that lets users in the United States buy products from Etsy sellers without leaving the app. Shopify merchants will reach ChatGPT soon, alongside multiple-item purchases, the company said.
A Shopify spokesperson told BetaKit that a select group of Shopify merchants, including Glossier, Spanx, and Steve Madden, will be allowed to sell on ChatGPT as part of an early-access program, which will then be broadened to include more merchants.
“People are discovering products in AI conversations, not just through search or ads.”
Shopify merchants can sign up to receive updates about the program’s rollout. According to the Ottawa-based e-commerce giant, orders will be processed like they would through a merchant’s typical channels. ChatGPT will display store names, and merchants will control whether shoppers use the Instant Checkout feature or their online store.
OpenAI said it plans to expand Instant Checkout to more regions next year.
“People are discovering products in AI conversations, not just through search or ads,” Vanessa Lee, Shopify’s vice president of product, said in a blog post. “This will let our merchants show up naturally in those moments and give shoppers a way to buy without breaking their flow.”
BetaKit has reached out to Shopify for further details on the partnership and associated fees for merchants.
OpenAI is also accepting applications from merchants outside of Etsy or Shopify who hope to have their products show up in ChatGPT searches.
To be listed, sellers must make their checkout application programming interface (API) compatible with OpenAI’s agentic commerce protocol—an open-source checkout payment framework built in partnership with payments processor Stripe.
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Shopify’s stock jumped by six percent on the Nasdaq and the Toronto Stock Exchange following the announcement. ATB Financial analyst Martin Toner said investors will be watching to see how much this new shopping option will accelerate e-commerce sales.
Shopify’s gross merchandise volume (GMV) is expected to near $400 billion USD this year, “a big number to push higher by any material amount,” according to Toner.
He added that Shopify has historically maintained a lower take rate (percentage claimed from merchants per sale) compared to e-commerce platforms such as Amazon. Creating a new avenue of demand through ChatGPT, prompts questions about the company’s strategy, Toner said.
“Is this the catalyst for Shopify to start monetizing demand generation?” he asked. “They’ve resisted for their entire history. It’s hard to say.”
According to OpenAI, merchants will have to pay a small fee for each purchase. The chatbot will “optimize the user experience” based on considerations like“availability, price, quality, primary seller status, and the presence of Instant Checkout.
The announcement follows months of rumors and speculation about a partnership between Shopify and OpenAI. An investor asked about the reported partnership during Shopify’s Q2 earnings call, to which company president Harley Finkelstein said he was “actively working on new opportunities and partnerships.”
A preview note from the National Bank of Canada also referenced the potential partnership with OpenAI, saying it could drive more than $500 million in net revenue on a future run-rate basis for Shopify relative to current estimates.
Shopify, which provides an online retail platform to small merchants and large enterprises, beat its forecasted revenue growth last quarter and briefly beat out the Royal Bank of Canada to regain the title of most valuable public Canadian company by market capitalization.
Disclosure: BetaKit majority owner Good Future is the family office of two former Shopify leaders, Arati Sharma and Satish Kanwar.
Feature image courtesy Shopify.