00:27:09 · Harley Finkelstein
[00:27:09] S4: I think every retailer is looking... Is being asked by their board, hey, what is your AI commerce strategy? What is your organic shopping strategy? And one of the things that I've said to when I meet these brands, you know, even some of the, you know, bigger brands or or or older brands like, you know, Estee Lauder or Birkenstock or I don't know, Hunter Douglas is I will say, look, ultimately, what I think you've all had to do for the last twenty, thirty years is you've had to not just be an incredible retailer and a and a brand producer and a product producer, but you also had to effectively become a technology company. You had to understand, like, you know, online stores. You had to understand servers. You had to understand data rooms. You had to understand, you know, how this all kind of fits together. And and you... Many cases, you even had your own, like, on prem servers. I was like, I think that era is over. I I think the era is now get back to building incredible cosmetics or great, yoga apparel or whatever your product is and let us handle the infrastructure around all of commerce. I think the agentic, everyone's sort of thinking about it. I think the numbers are actually... I mean, it's still on a very small base because it's so We did $400,000,000,000 last year of GMV total. So it's still a fairly small base relative to overall GMV, but traffic was up 2.6 x year on year. Orders were up 3.3 x year on year. And more importantly, on the conversion side, if you just compare conversion using Shopify catalog versus general AI search, which is effectively scraping, it's two x higher. And even in terms of what they're seeing from some of these, like they're seeing more, more, more, more new customers come on. But the real winners of of AI so far has really been kind of the long tail. These, you know, like, products that are outside our top 100 categories, and we have a ton of them on Shopify.
00:28:55 · John Coogan, Jordi Hays, Dylan Patel, Harley Finkelstein
[00:28:55] S1: I completed my first... Oh, sorry, Jordi. You go. [00:28:58] S0: No. You go. Go, John. I I can't [00:29:00] S3: wait to hear. [00:29:01] S1: I completed my first agentic purchase on Shopify. [00:29:04] S4: What was it? [00:29:05] S1: I I bought a raincoat. I... It was raining, and I told Dot in chat GPT, I need a raincoat. Go find it. Buy it. Send it to me. Just do everything at use Shop Pay, and it has arrived. It's it's [00:29:17] S4: really Right? It's it's so seamless. It's so simple. One thing, that I would say, John, that people are missing about the Shop Pay integration, whether it's Muse or Instinct or Claude two m or Grok bot, is that by using Shop Pay, obviously, the the payment, the transaction is simple, it's safe, it's fast. But as part of it also, when you connect shop to to these these personal agents, your entire shopping history, the agent now understands they give way better recommendations. Obviously, the same payment details with Shop Pay, but also you now can track your package through the shop shop app as well. So this idea of actually using Shop Pay almost as an identity system for these agents mean that no matter what agent you use, if Shop is... Shop Pay are connected to it, it actually has a perfect understanding about your buying.
00:29:17 · Harley Finkelstein, John Coogan
[00:29:17] S4: really Right? It's it's so seamless. It's so simple. One thing, that I would say, John, that people are missing about the Shop Pay integration, whether it's Muse or Instinct or Claude two m or Grok bot, is that by using Shop Pay, obviously, the the payment, the transaction is simple, it's safe, it's fast. But as part of it also, when you connect shop to to these these personal agents, your entire shopping history, the agent now understands they give way better recommendations. Obviously, the same payment details with Shop Pay, but also you now can track your package through the shop shop app as well. So this idea of actually using Shop Pay almost as an identity system for these agents mean that no matter what agent you use, if Shop is... Shop Pay are connected to it, it actually has a perfect understanding about your buying. [00:30:00] S1: Yeah. Yeah. I feel like, we spent all last year talking about, like, are you seeing agent to commerce yet? And it feels like we're still in the early adopter mode for sure, but it's starting to be real. I'm hearing more stories. Everyone has it access to at least a technology that can functionally do it, whether they've leaned in and built the [00:30:18] S4: Some of them are just using it still as discovery. Right? I think I think BFCM twenty twenty five, which we spent we spent that day together, it was really about discovery. I'm looking for new products. Yep. I think now we sort of move from just discovery to discovery and just buy from me. Yeah. Like delegated shot... Delegated purchase.
00:30:18 · Harley Finkelstein, John Coogan, Jordi Hays
[00:30:18] S4: Some of them are just using it still as discovery. Right? I think I think BFCM twenty twenty five, which we spent we spent that day together, it was really about discovery. I'm looking for new products. Yep. I think now we sort of move from just discovery to discovery and just buy from me. Yeah. Like delegated shot... Delegated purchase. [00:30:36] S1: Yeah. No. It it actually is [00:30:38] S0: so what what are Yeah. What do you think is actually gonna happen with this category? Because, like, I... You know, an agent cannot save me time versus just doing it myself with how good Shop Pay is. Like, I'm just... Just like... [00:30:53] S4: Yes. I think I think I think to go back to to... Yeah. Go ahead. [00:30:57] S0: Yeah. I just... As somebody who's, like, very AI pilled but almost equally Shopify pilled. Right? Like, I've just been been buying things with Shopify for so long and it feels like every single year it gets like, you know, like significantly faster to complete a purchase. Like both like
00:31:16 · Harley Finkelstein
[00:31:16] S4: page... I'll give you the example where I think where I think it is... Where where I think you'd use just go to the online store, use Shop Pay, it's fast and easy versus John's example of the raincoat. If John had a favorite raincoat company, I think he would have gone directly to the site in a matter of seconds would have checked it out using Shop Pay. I think because he doesn't necessarily have a specific company that he wanted to purchase from, there was a, there was an element there of research. If you, if I look back on like the last bunch of, of transactions completed by personal agents, it's companies like Roborock, which robot vacuums are everywhere. Everyone has one, but this is specifically for a particular type of pet hair or Withings, which you guys know the brand. Like, it's a smartwatch that does not look like a smartwatch or a car seat for three... This is, literally a transaction happened early today. A car seat for three kids, a car seat for three kids that fit in the back of the denim. So three car seats stacked. This is very different than knowing I'm gonna go to this car seat brand, buy it. I want to do it. There's an element of discovery here whereby the AI... Whereby the agent can actually digest a billion different SKUs, look at product attributes, cross reference it with what everything it knows about you from Shopper or elsewhere, and then say, hey, here's what you want. And I think for those types of purchases, this gets into a really interesting new area.
00:32:39 · Jordi Hays, Harley Finkelstein, John Coogan
[00:32:39] S0: Yeah. Yeah. Yeah. Okay. I think that's a that's a very that's a very helpful way to think about it. Because personally, I would never just say, like, I need a rain jacket. Get me your jacket, please. I would I would I would go to a handful of my favorite brands [00:32:54] S4: and I don't... I look for the direct to consumer, like, the cool one, like, rain or something [00:32:59] S0: like that. Yeah. There there are there are a bunch of other products where... That are not, like, brand driven purchases to me, that don't, you know That's right. I'm... Now I'm so curious to... John, you gotta wear the rain jacket tomorrow whether it's raining or not. I I gotta I gotta see... [00:33:13] S1: Your jaw's gonna be on the floor. You're gonna be like, that's the best raincoat I've ever seen.