What does ChatGPT's instant checkout mean for Etsy sellers?

Consumers can now browse and buy products without leaving the ChatGPT app, following a new partnership between OpenAI and Etsy.

The new ‘instant checkout’ feature connects shoppers to specific products in Etsy’s online marketplace, going beyond suggesting links to supporting an end-to-end buying experience.

ChatGPT retail update: at a glance

Etsy products can be viewed and be bought directly from ChatGPT
this feature is only available in the US – but it will be expanded to other regions
online sellers should prepare by optimising their product pages and images

This functionality is currently only available for people in the US, but it’s widely expected to be released in the UK soon.

So, what does this latest development in AI technology mean for small businesses? And how can online sellers get ahead of the UK launch and boost their chances of appearing in ChatGPT search?

How does ‘instant checkout’ work on ChatGPT?

Etsy sellers need to select ‘instant checkout’ for people to buy directly from ChatGPT when a product is suggested in a conversation. Merchants are charged a transaction fee when a sale is made through the app, but it’s a free service for people to use.

People using ChatGPT to shop will see an option to ‘buy’ when suggested products have the setting enabled to complete a purchase in the app.

The functionality currently only allows people based in the US to buy one item at the checkout, but OpenAI is planning to expand to multi-item baskets. Other merchants including Shopify and different regions are set to follow next.

Rafe Colburn, Chief Product and Technology Officer at Etsy said: “AI-powered and agentic shopping present meaningful opportunities for the unique items on Etsy to shine. These tools offer deeper insights into our inventory, enabling our sellers’ items to starkly stand out against the sea of impersonal, mass-produced goods.”

What is agentic shopping?

Agentic shopping is when artificial intelligence is used to buy something without the need for human decisions along the way. The ‘AI agent’ follows an initial command and then will go through the full buying process for you, from research and price comparison to making a payment.

How to show up in ChatGPT

OpenAI explained how ChatGPT chooses what products to show users: “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.”

Interestingly, this could mean the feature is likely to favour sellers with their own products over anyone who’s dropshipping, for example.

Match what consumers are asking for

As technology moves society closer to agentic shopping experiences, there’s an opportunity for small businesses to evolve their marketing plans and make sure product descriptions and images match what consumers are looking for.

For example, if you have a homemade candle business then you might be able to appear in ChatGPT when someone searches for “gift ideas for Christmas”.

ChatGPT highlights some important factors to consider when optimising your page to appear in conversations:

pricing
product descriptions
labels
reviews
ratings
product imagery

It looks at information you have on your website or Etsy page as well as information about you on other websites.

How does shopping with ChatGPT work now?

People in the UK are already using ChatGPT search to help them with their shopping, whether that’s coming up with gift ideas or booking a holiday.

According to OpenAI’s help pages, “ChatGPT can show product options with imagery, product details, and link to sites where you can learn more or purchase”.

It says product results are “selected independently by ChatGPT and are not ads”.

Example shopping queries:

Help me find a present for my 30 year-old brother
I’m looking for artwork to decorate my new flat
Can you suggest gift ideas for my family this Christmas?

This latest announcement is bringing ChatGPT closer to agentic commerce, where AI can take just one prompt to research, select, and buy something.

What will AI shopping mean for small businesses?

ChatGPT is forging a path in “conversational commerce” taking people beyond traditional questions in a Google search to a conversation with personalised recommendations.

This gives Etsy sellers the chance to reach more people without having to change any of their payment and system processes.

However, it could also make it more difficult to stand out if people aren’t relying on Google searches and instead are getting a smaller, curated list of recommendations.

For small businesses, the key will be keeping up with changes and trying to match your products and marketing to the needs of your customer.

When might Etsy instant checkout come to the UK?

It’s not clear when UK sellers could have the option for customers to buy their products within ChatGPT, but OpenAI has said it plans to expand the regions next.

OpenAI has said it plans to release the instant checkout first for Etsy in the US and will then look at Shopify merchants next.

As AI developments happen so fast, it’s worth keeping an eye on how the roll-out goes in the US and anticipate changes in the UK soon. Keep an eye on the Knowledge centre and sign up to our newsletter for the latest small business news.

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What does ChatGPT’s instant checkout mean for Etsy sellers?