ChatGPT Enters eCommerce, Challenging Amazon’s Advertising Dominance
OpenAI has introduced a direct purchase feature inside ChatGPT, marking its entry into the eCommerce market. This move could challenge Amazon’s $56.2B ad business as product discovery and conversion happen within natural-language conversations.
What’s New: Direct Purchase Inside ChatGPT
Users can now browse, receive recommendations, and complete purchases directly in the chat interface. With an estimated hundreds of millions of active users and billions of annual product interactions, conversational commerce is emerging as a streamlined path from search → recommendation → checkout.
Why It Matters for Amazon’s Ad Business
Amazon’s ads rely on keyword-based auctions and sponsored listings. ChatGPT’s model, however, is driven by AI recommendations in natural language, potentially bypassing traditional keyword bidding and altering how shoppers discover products and brands.
Impact on Digital Advertising & eCommerce
- Discovery Shift: From keyword search to dialog-based product advice.
- Attribution Rethink: Brands will track intent and conversion inside chat flows.
- Merchant Readiness: Catalog data, pricing, and fulfillment must be AI-readable and real-time.
