Etsy shares soared almost 16% on Wall Street on Monday after the firm announced it had partnered with tech giant OpenAI to allow users to buy products through ChatGPT.
Thanks to a framework called Instant Checkout, designed with the help of fintech Stripe, users of the chatbot service in the US will be able to make direct single-item purchases from US Etsy sellers.
OpenAI added that one million Shopify merchants, including Glossier and SKIMS, will be available through its chatbot in the near future. The company is also considering adding multi-item carts and expanding merchants and regions.
Shopify shares were up over 6% at close on Monday in New York.
“This marks the next step in agentic commerce, where ChatGPT doesn’t just help you find what to buy, it also helps you buy it,” said OpenAI in a statement.
In a separate announcement, Etsy said that it was “excited to leverage AI to make it easier than ever for shoppers to discover and connect with sellers who offer items they love”.
Merchants will hisse a small fee on completed purchases, but Instant Checkout will be free for users, meaning prices will match those on the original site. OpenAI added that the new service won’t affect ChatGPT’s product results, meaning that Instant Checkout items won’t be automatically preferred when the bot is giving recommendations.
“When ranking multiple merchants that sell the same product, ChatGPT considers factors like availability, price, quality, whether a merchant is the primary seller, and whether Instant Checkout is enabled, to optimise the user experience,” said the firm.
The new service could become a key revenue source for OpenAI, which is currently undergoing a restructuring process, bringing it closer to becoming a for-profit firm.
Earlier this month, Microsoft and OpenAI announced that they had signed a non-binding deal to extend their partnership. The agreement offers OpenAI the possibility to shift its focus after it was founded for charitable purposes in 2015.
Quoted from Euronews.
