"Conversion rates-the percentage of users following through with a purchase of an item shown to them by ChatGPT-have been three times lower for the selection sold directly inside the chatbot than those that require clicking out, according to Daniel Danker, who oversees design and product for Walmart. Put simply, Instant Checkout has been a flop."
"The approach solves what Danker says he believes is the biggest problem with Instant Checkout: It forces people to buy items individually. "They fear that when checkout happens automatically after every single item that they're going to receive five boxes when they actually just want it all in one," Danker says."
Walmart partnered with OpenAI in November to enable ChatGPT users to purchase from a limited product selection directly within the chatbot through an "agentic commerce" feature called Instant Checkout. However, conversion rates for products sold directly in ChatGPT were three times lower than those requiring users to click through to Walmart's website. The primary issue was that Instant Checkout forced individual item purchases, causing consumer anxiety about receiving multiple shipments. Rather than spending years refining the experience, OpenAI and Walmart opted for a new approach: embedding Walmart's chatbot Sparky within ChatGPT, with a similar integration planned for Google's Gemini. This strategy addresses the fundamental friction point of automatic checkout after each item.
Read at WIRED
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