ChatGPT joins forces with Etsy and Shopify to usher in the AI shopping era, Etsy surges 16%

OpenAI has launched an instant checkout feature, allowing users to purchase products directly through ChatGPT. This move aims to open up new revenue streams and could have a profound impact on the e-commerce landscape. On September 29, OpenAI announced partnerships with Etsy and Shopify, allowing U.S. users to purchase individual items from Etsy sellers directly within ChatGPT conversations. Additionally, over one million Shopify merchants, including well-known brands like Glossier and SKIMS, are set to join the platform. The instant checkout feature is available to U.S. ChatGPT Plus, Pro, and free users. OpenAI will charge fees for transactions completed through ChatGPT, but this will not affect the purchase price for users. OpenAI's product lead, Michelle Fradin, stated: Our vision for ChatGPT is that it not only provides information to users but also helps them complete transactions in the real world. The company plans to introduce a multi-item shopping cart feature in the future and expand the geographic coverage of instant checkout. The market believes this move will bring new sales channels to the e-commerce industry while helping OpenAI expand its commercialization path beyond traditional subscription models. Boosted by this news, Etsy's stock price surged nearly 16% at the close on Monday, while Shopify's stock price rose over 6%. Seamless Shopping Experience and Fees This new feature aims to directly convert the massive user conversation traffic into commercial transactions. According to OpenAI, ChatGPT's weekly active user count exceeded 7 million in August, with a "significant portion" of user inquiries related to shopping and consumption. Now, when users browse and see products from Etsy sellers in ChatGPT, they can complete their purchases directly in the chat interface without needing to navigate to the merchant's website. Shopify stated on its website: Its merchants will be able to sell directly through ChatGPT conversations—no links, no redirects, just a seamless business experience. Currently, "instant checkout" only supports single-item purchases and is available to U.S. users. However, OpenAI plans to introduce a multi-item shopping cart feature in the future and expand the range of merchants and regions covered by this feature. Fradin stated: We want to make it easier for users to complete their journeys in ChatGPT and for merchants and developers to convert these conversations into checkouts. **OpenAI will charge fees for transactions completed through ChatGPT, but has not yet disclosed specific fee standards, stating that this information is included in confidentiality agreements with Etsy and Shopify ** For users, the instant checkout feature is completely free and will not affect product prices. OpenAI stated that this feature leverages the vast user traffic of ChatGPT to open new revenue channels beyond traditional subscription models. Technical Architecture and Industry Impact The instant checkout feature is based on OpenAI's agent commerce protocol, which was developed in collaboration with the payment company Stripe, which also provides payment support for ChatGPT subscription services. Fradin stated that if users are already subscribers and have linked their bank cards in ChatGPT, they will not need to re-enter payment information when purchasing Etsy products. OpenAI will open-source this framework to help merchants build integration solutions more quickly, allowing developers to explore different use cases. Although the protocol is initially used for e-commerce, Fradin indicated that it may facilitate other types of purchases or payments in the future. For e-commerce platforms like Etsy and Shopify, integrating ChatGPT means a new channel to reach a vast potential consumer base. Etsy's Chief Product and Technology Officer Rafe Colburn stated: AI-driven agent shopping presents meaningful opportunities for this online marketplace