‘It fundamentally changes what it means to be an e-commerce brand’: What a ChatGPT checkout system could mean for retail

Getting into the checkout game would be indicative of a different direction for OpenAI, which, back in December, said it had “no active plans to pursue advertising.” OpenAI had previously considered restructuring into a for-profit company, but scrapped those plans in May. And yet, by developing checkout for ChatGPT — and asking brands to pay a cut to OpenAI — ChatGPT is on track to becoming an affiliate. That’s a game changer, founders told Modern Retail, because ChatGPT would transform from a research tool into a revenue driver. What’s more, if other AI engines like Google Gemini or Perplexity roll out their own checkout functions, it could lead to a generation-defining shift in online shopping.

“It fundamentally changes what it means to be an e-commerce brand,” said Jimmy Zollo, the co-founder of adaptive clothing brand Joe & Bella. “We can’t be thinking of ChatGPT or other AI models just as search engines. Now, we have to be thinking about them as storefronts.”

Currently, ChatGPT’s product recommendations are tailored to a user’s query, personal preferences and question history. A prompt like, “What’s the best lipstick for a night out?” brings up a list of products, which users can then look up and buy on a brand’s website or that of a retailer. But some startups are worried that results could be skewed if OpenAI prioritizes companies willing to fork over a cut.

If ChatGPT becomes a pay-to-play marketing platform, “that’s very concerning to me,” said Liz Williams, founder of the coat brand The Checkroom. “I don’t see it being a space that I could compete in, especially against Amazon and H&M and bigger brands. I can see where this would be helpful to companies that already are ranking high in Google, but I don’t see it being something I could afford.”

AI has already transformed how consumers interact with brands online. Some brands have seen a lift in traffic from ChatGPT and other AI models, even without checkout in place. Viv For Your V, which sells toxic-free period-care products, said it received a 400% bump in visitors to its website last summer following the publication of a study around heavy metals like lead and arsenic in some tampons. “People were searching for safer options, and because we had this huge wealth of education on our website, ChatGPT and Google Gemini were suggesting our products,” said Kelly Donohue, marketing and design director at Viv For Your V.

Donohue appreciates that ChatGPT has surfaced her brand’s content, but she also worries about ChatGPT becoming an ad channel and “prioritizing the paid aspect over educational content.” Katie Diasti, founder and CEO of Viv For Your V, echoed that thought: “Is it going to be that whoever has the biggest ad budget ends up being the winner of what’s the safest product, when they’re not actually the safest product?” she asked.

“I think it’s going to cause concern with people who’ve really trusted the platform,” Diasti said.

Contingencies and questions

OpenAI has not publicly said when this new version of ChatGPT will debut, or even what percentage OpenAI would take from a sale. But brands are already scrambling to figure out ways to not get left behind.

Joe & Bella, for instance, is making sure its web copy is “incredibly clean and comprehensive,” Zollo said. People checking out via ChatGPT, he said, “won’t have the benefit of the level of images and video that we’ve put out there [on our site].”

“Purchasing decisions will be made based on the merits of how ChatGPT describes and understands your product,” Zollo continued. “So, we need to do all we can to make sure ChatGPT is making the right recommendations.”

Joe & Bella is now starting to A/B test website copy to see whether bullet points or other sentence formats resonate more with ChatGPT. It’s also updating its sizing information so it lives beyond a chart. Zollo mentioned having “a conversational style that says, ‘If this is your waist, if these are your measurements, this is what we recommend and why.'”

“It’s almost like deconstructing that size quiz so that ChatGPT can reconstruct it,” he said. What’s more, he said, accurate size recommendations in ChatGPT could help cut down returns.

Springrose, an adaptive undergarments brand, is also in the process of fine-tuning its website content to optimize for search engine optimization and generative engine optimization, founder Nicole Cuervo told Modern Retail. It’s been doing this for months — even before news of checkout via ChatGPT arose — and has seen some sales trickle in from platforms like ChatGPT. Cuervo has mixed feelings about ChatGPT checkout, but thinks it could “reduce friction in the purchasing process.”

Indeed, brands could end up seeing sales take off, thanks to ChatGPT checkout, pointed out Hannah Cranston, whose PR firm discusses the topic with clients like Bird&Be and Barriére. With traditional affiliates like creator networks, she said, “there’s a lot of back-end work in onboarding new partners.”

“If AI streamlines that, there could be a world in which you’re getting a lot of sales from that platform being integrated,” Cranston added.

Still, founders like Cuervo have concerns about how everything will work. “Are we getting any of that consumer information and data [from sales on ChatGPT]?” she asked. What’s more, Cuervo said, “If ChatGPT tells people outdated information and a product isn’t what someone thought it would be, that reflects poorly on us, not ChatGPT, because a lot of times, people don’t really distinguish between the brand and the platform they buy from.”

Ultimately, until ChatGPT and OpenAI reveal more about the checkout program, founders are stuck responding to educated guesses. “I’m really curious what this will mean for average order value, what this will mean for repeat purchase rate, what this will mean for just brand loyalty in a broader sense,” Zollo said. “There’s a lot to prepare for, but there’s much uncertainty still.”