OpenAI revamps ChatGPT shopping experience after Instant Checkout struggles with merchants

Reviewed byNidhi Govil

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OpenAI is overhauling its ChatGPT shopping experience, shifting focus from in-app purchases to product discovery after its Instant Checkout feature failed to gain traction. Walmart reported conversion rates reached only one-third of its native channels, prompting the company to pivot toward a merchant-controlled model that keeps retailers in charge of transactions while ChatGPT handles discovery.

OpenAI Pivots ChatGPT Shopping Strategy After Instant Checkout Falls Short

OpenAI announced on Tuesday that it is rolling out a revamped shopping experience within ChatGPT, marking a significant shift away from its struggling Instant Checkout feature. The company is now focusing on product discovery rather than enabling transactions directly within the chatbot, after retailers reported disappointing performance and limited flexibility with the original approach

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Source: PYMNTS

Source: PYMNTS

The pivot comes after Walmart disclosed that conversion rates inside ChatGPT reached only about one-third of its native channels, calling the customer experience "unsatisfying"

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. OpenAI initially launched Instant Checkout in September, allowing users to purchase items from retailers like Etsy, Walmart, and Shopify directly within the chat interface. The feature was billed as the "next step" in AI-enabled commerce, but analysts told CNBC that OpenAI underestimated how difficult enabling transactions would be

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Visual Shopping Tools Replace In-App Checkout

The updated shopping experience introduces more visual shopping capabilities that allow users to upload images or describe items while including criteria like budget, preferences and other constraints

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. ChatGPT now offers richer visual results with side-by-side product comparisons, including prices, reviews and features, transforming what OpenAI describes as "a fragmented, time-consuming process into a single, seamless experience"

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Source: MacRumors

Source: MacRumors

"Under the hood, we've improved speed, relevance, and product coverage -- so results are more up-to-date and more useful," OpenAI said in a blog post

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. The updates are rolling out this week to all ChatGPT Free, Go, Plus and Pro users .

Merchants Regain Control Through New Architecture

The shift represents a move toward a merchant-controlled model where retailers maintain control over the checkout process while OpenAI provides discovery and distribution. "We've found that the initial version of Instant Checkout did not offer the level of flexibility that we aspire to provide, so we're allowing merchants to use their own checkout experiences while we focus our efforts on product discovery," OpenAI stated

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Walmart is introducing an in-ChatGPT app experience that supports account linking, loyalty programs and Walmart payments, keeping the checkout process entirely within its own infrastructure

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. Early internal data shows Walmart's new assistant, Sparky, converting at roughly 70% of Walmart.com's rate inside ChatGPT—a significant improvement over Instant Checkout, though still below native performance

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Source: PYMNTS

Source: PYMNTS

Daniel Danker, executive vice president of AI acceleration, product and design at Walmart, said the retailer is "bringing Walmart directly into the ChatGPT experience, combining leading conversational AI with the decades of retail expertise we've built serving consumers"

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Agentic Commerce Protocol Expands Merchant Participation

The new approach is powered by an expansion of the Agentic Commerce Protocol (ACP), which OpenAI co-developed with Stripe and open-sourced from day one

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. The protocol enables merchants to share product feeds and promotions directly with ChatGPT, ensuring their products are "fully represented" within the platform

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Retailers including Target, Sephora, Nordstrom, Best Buy and The Home Depot are already participating in the new product discovery experience . Shopify announced Tuesday that it is "upgrading the shopping experience" in ChatGPT by allowing merchants to connect their storefronts to its catalog, then complete purchases via an in-app browser

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. The company is also rolling out a new Agentic Plan service that lets merchants surface their products via Shopify's tools in ChatGPT, Google Gemini and elsewhere

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What the Pivot Means for AI Commerce

The challenges OpenAI faced with Instant Checkout highlight the complexity of AI-driven commerce. Gartner analyst Bob Hetu told CNBC that OpenAI "underestimated how difficult the enablement of transactions was going to be"

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. The company struggled to onboard merchants, show accurate data about products, and introduce multi-item carts or connect loyalty memberships

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Walmart excluded high-consideration purchases such as televisions because the chat flow could not support bundling and accessory recommendations, and the linear, single-query format did not match the multi-item basket behavior that drives order value

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. Shoppers also hesitated at the unfamiliar payment flow inside a third-party interface

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"As with other parts of ChatGPT, we're building iteratively," OpenAI wrote, suggesting it may continue to adjust its approach based on user and merchant feedback

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. The revised model positions OpenAI as a discovery platform while retailers retain control over customer identity, transaction economics and the full checkout process—a structure that may prove more sustainable as AI shopping continues to develop.

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