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The AI Shopping Revolution: How ChatGPT is Changing Retail

By AI Hustle (Audio)

Summary

Topics Covered

  • ChatGPT Steals Google Searches
  • Amazon Dominates ChatGPT Referrals
  • Small Boutiques Ignore ChatGPT
  • Loss Leaders Drive Upsells
  • AI Referrals Boost Conversions 38%

Full Transcript

ChatGPT says that referrals to retail apps have increased 28% year-over-year.

I think this is really interesting, especially as we're coming right off of Black Friday, Cyber Monday. We're seeing

there was a huge push this year of Chat GPT actually referring people to purchase things. Um, and so it feels

purchase things. Um, and so it feels like this is an ever evolving consumer trend. But today on the show, we're

trend. But today on the show, we're going to dive we're going to break down exactly how this happened. uh why we think the the trend was at 28% where we think it'll be in the future as this continues to grow um where we were in

the past. I think this is going to be

the past. I think this is going to be something that is going to be impossible to ignore in the future for businesses.

whatever your business is um service space um or product it's going to have to make a huge uh effort to focus on chat GBT ranking inside of chat should be making sure that your business shows

up in there because this is where people are moving away from Google to uh a large percentage of searches are going there whether Google likes it or not and Google has other things that they're trying to do to get get more traffic or

more searches and make it you know keep their revenue up but in the meantime patchup is taking a huge chunk of the market so we're going to cover that today before we get into that I wanted to mention Jamie and I actually recorded an entire video today breaking down how

to get your business or service to rank and inside of chat GPT. It's over on our school community where we release an exclusive video every single week for our Black Friday Cyber Monday deal is

$19 a month. So if you want to get access to our library of over 60 videos we have an amazing community over 300 members. All of that is on um our school

members. All of that is on um our school community and you can uh get that all for our Black Friday discount of $19 a month. Get that price. it's locked in.

month. Get that price. it's locked in.

When we raise the price in the future, uh you won't have the price raised on you. So, if you want to go check that

you. So, if you want to go check that out, there's a link in the description to our school community. Jamie, I I guess was this a shock to you to see that like 26% of uh traffic was now, you

know, retailers apps increased by 28% year-over-year?

>> No, actually, I feel like um this year I found myself more and more using ChatBT for searches on anything from shopping, you know, I I think just as time goes on, it's going to be used more and more.

The concern here is that um this this really at this point is mostly benefiting the big giants as far as Amazon and Walmart. It's not really doesn't seem to be benefiting the small

guys yet, which is always, you know, a problem. People are concerned about

problem. People are concerned about monopolies and fair business practice.

And now >> Walmart and Amazon are just getting even more referrals from Chad GBT. That's

kind of the big concern here. Um, it

says that Amazon's share of chat GBT referrals grew 54 grew to 54% uh up from 40% 40.5% in 2024. Um, yeah, I don't know. What are your thoughts on that,

know. What are your thoughts on that, Jaden?

>> Well, okay. So, I think it's a fair point. I I'd be curious to see what

point. I I'd be curious to see what Google's traffic was. I feel like Google probably pushes a lot towards um Amazon and Walmart, although they'll probably try to make them pay for it by by putting ads in there. But what I will

say is yes, you know, like Amazon's chat chat GPT referrals are up 24% um from 40.5% in 2024. So like we are up, you know,

in 2024. So like we are up, you know, quite quite a bit. Walmart's share

increased 2.7% um from last year. So it's now at 14.9%.

So Walmart and Amazon definitely growing. Amazon is the big winner here.

growing. Amazon is the big winner here.

Um, what I will say is despite this being like a pretty big jump from 2024, I will just like bring out the caveat that like this is still a very small piece of the overall referral market. So

apptopia, who kind of does all of this research and brings together all the clicks and traffic that's going towards these different websites. They said that last year ChatGpt's referral to all of these different e-commerce apps like

Amazon, Walmart, all these different businesses was they were only 64% of all ChatGpt sessions on Black Friday. Um,

and that only grew to 082% this year.

So, I guess what I'm saying is if you think of all of the traffic, right, like Chat GBT has 600 million weekly active users. That is absolutely insane. That

users. That is absolutely insane. That

is a crazy number. And of all of those users, only 82% uh that were, you know, of the usage on Black Friday was actually going towards products that people were buying towards

these Amazon and Walmart and like these other products and stuff. So, I will say if you've ever used Chachup, you'll know that like searching for products, Chachup is going to usually refer you to one of these big retailers. That's just

what happens. But it seems that people I maybe they're going directly to Walmart, directly to Amazon themselves. Possibly

there's Google in the mix. But I think a lot of times if you're going to use one of the big retailers, you're probably going to go directly. if you're going to find like a smaller website like I have a I know someone for example that loves

like buying boutique dresses and like boutique everything and everything that they find uh that that they purchase is from like Instagram ads or Instagram influencers. Those are kind of where the

influencers. Those are kind of where the traffic is driven and how they how they find out about it. I just can't imagine one of those people like I'm just thinking of this customer persona going to Chat Gypy and be like find me the

cutest like boutique dresses for like Christmas for like my daughters and like I just there's no way Chad Gupty is going to find this random little Etsy or like Shopify store that this influencer set up and like sourced their dresses

from China and got these custom cute designs and you know what I mean? So I

think for the smaller stuff, it's still going to be driven by social and uh Instagram. And that is a lot of traffic

Instagram. And that is a lot of traffic is kind of this niche small stuff. When

it comes to big consumer electronics, headphones, laptops, you know, microphones, cables, like TVs, I I think a like well TV is probably more like Walmart, but you know what I mean. So I

think electronics is definitely going to be crushing it from from that, but it's it's still a very small percentage of what people are actually searching for.

I actually have a funny story on that because I did was fell prey to the Black Friday marketing from Walmart. I bought

a TV this year, but I knew it.

>> They got me. But I started off I actually had I had bought one online from Best Buy and I was going to pick it up, but I decided to go to Walmart to get a stand or a Walmart because they're

really cheap there. And while I was in Walmart, I saw the same TV. Um, but it was a little bit more expensive, but it had Google TV instead of uh Fire TV, which I liked. Yeah. So, I quickly just

snapped a picture and I I uploaded both photos and I said, "Which one of these TVs is better?"

>> And obviously, the one at Walmart was way better. It was the 2025 version had

way better. It was the 2025 version had better.

>> You posted this on your Instagram story.

>> No, I didn't. No, no, but >> Oh, you asked Chad GPT.

>> I asked Chad GBT. Which TV is better?

because I don't know all the tech specs, you know, and >> but I knew it was a little bit more. I

thought maybe it'd be a better value and it was like >> absolutely get the get the the Google TV one from Walmart. It's way better. So,

it helped me make the purchase decision.

Um, and it was like a hybrid between online shopping and and in store shopping, but I was glad I glad I consulted Chad GBT.

>> That's hilarious. So you like in So I guess that's another great point is when we're doing these analytics and they're saying like look only like8% of whatever searches on chat GBT on Black Friday are actually going towards sales you would

not have been included in that. So I

think that's another good caveat for people to think about is just because the you know the sale isn't happening on a direct click from ChatGpt consumers are asking about products and making

purchasing decisions but yeah you went and bought it in person in the store but you're still asking ChatG about a Black Friday sale. So, I think that's another

Friday sale. So, I think that's another that's another interesting point. You

might go to amazon.com. Honestly, half

the time if I'm on chat GBT, I I'd probably say something like, "What are the best headphones today for XYZ purpose?" It would give me a list of

purpose?" It would give me a list of them. I would look at the list. I'd read

them. I would look at the list. I'd read

this little description of why. I would

probably go to the Amazon, even if they had a link. I don't know if I'd click the link because I just feel like all links are spam uh on the internet. I'd

probably go to Amazon and copy and paste the name of that title in and go research that product and go to it. So,

I don't even think I myself would be clicking through that link. I think

there's a lot of people that might make similar uh similar kind of like purchase decision workflows. Um they'll have it

decision workflows. Um they'll have it open. They're, you know, they're doing a

open. They're, you know, they're doing a lot of research, especially if it's something that costs thousands of dollars, like a really fancy laptop or TV or something like that. So, that's

very interesting. Um but I think there's actually a bigger lesson here that I just really want to outline. Uh which is because of course this is the AI Hustle School. This is AI Hustle uh podcast

School. This is AI Hustle uh podcast where we talk about making money online.

Amy went to Walmart, guys, to buy a mount. Walmart pulled the ultimate heist

mount. Walmart pulled the ultimate heist where they they get you in for like a small thing they know you need and then they sell you a thousand dollar TV or you know, hundreds of whatever, however much your TV costs, they they get you in

with like the small thing, then you go buy the big thing. And I think this is a really good lesson for >> business on like loss leader items. You know, grocery stores put like the milk and eggs at the back and they make them super cheap. You go in for that, but you

super cheap. You go in for that, but you have to walk past all the chip aisles and all the food aisles on the way there and you end up buying like more stuff.

It's like Costco. I've never left Costco spending less than $300, I think. Um,

because I got to go get the $5 chicken at the back or whatever. So, anyways,

this is a great business idea or great business lesson. Whatever you sell,

business lesson. Whatever you sell, whatever your service is, have a loss leader. Have something very small Jeep

leader. Have something very small Jeep that people know they can always get for good value and then you can hit them with the big packages and and you bring them in that way. So, anyways, love that. It's going to be interesting to

that. It's going to be interesting to see what happens next year with all of the online sales. It did say on in this article that if you uh retail sites if they are a referral from a AI chatbot

they are 38% more likely to make a purchase. People are using chatbots feel

purchase. People are using chatbots feel more informed when they're making their decisions. Another business lesson you

decisions. Another business lesson you need to figure out how to get your business or product ranked on uh OpenAI or on ChatgBT so that you can be

recommended um as a good product or service uh and make that internet money.

Um I will just say one last thing is that Adobe also said that this week AI traffic to US retail sites um which was measured by shoppers clicks on a link

increased 805% year-over-year on Black Friday and those you mentioned who landed on those were uh retail sites from an AI chatbot 38% more likely to make the purchase. So that is really

big. Amazon also said the AI traffic to

big. Amazon also said the AI traffic to US retail sites on Cyber Monday increased 80%. So, it seems like Amazon

increased 80%. So, it seems like Amazon is is is showing bigger numbers than some of the other research firms that's out there. Uh or sorry, Adobe. Adobe

out there. Uh or sorry, Adobe. Adobe

does have really great uh research tools. They have a bunch of firms that

tools. They have a bunch of firms that they partner with and that they use directly, uh they have pretty good numbers. So, I think in all of the

numbers. So, I think in all of the holiday shopping seasons so far, which is just November 1st to December 1st, AI traffic is up 760%.

According to Adobe, so do not sleep on this. This is a massive trend. We'll

this. This is a massive trend. We'll

keep you guys up to date as these numbers are only going to grow. Make

sure that you're ranking your business in there. You could do that on the AI

in there. You could do that on the AI hustle school community. We have a whole video about it. Link in the description.

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