The New World of Agentic Commerce

Today, Shopify and Etsy announced a partnership with ChatGPT, causing their stocks to surge by 6% and 16% respectively. This collaboration allows select brands, products, and storefronts to be accessible within ChatGPT’s interface, enabling seamless purchases without leaving the platform.

Why the stock surge? It mirrors the excitement around DTC a decade ago: investors see this as the dawn of a new commerce channel. This partnership unlocks a novel way to reach customers who might not have been accessible before.

I began working with early-stage direct-to-consumer (DTC) companies in 2013. As an investor and co-founder of BrandProject, we believed brands were entering a new era where they could bypass traditional retail channels like grocery stores or pharmacies and sell directly to consumers.

When we invested in Freshly and Daily Harvest, both frozen food companies, they leveraged innovations in shipping, logistics, and packaging, along with the rise of e-commerce, to deliver high-quality products to customers in just days. These businesses commanded high valuation multiples because they pioneered a new channel—a direct connection to consumers that disrupted the traditional retail model, particularly the frozen food aisle. DTC became our direct pathway to the customer.

Twelve years later, it’s clear that every company needs a DTC strategy. Businesses now prioritize owning the entire customer relationship, from discovery to purchase, without relying on third parties like wholesalers, grocery stores, or other brands.

Imagine a consumer asking ChatGPT a question and receiving a product recommendation from a Shopify storefront or an Etsy listing—products they might never have discovered otherwise. Large Language Models (LLMs) like ChatGPT are opening a new frontier for commerce, creating opportunities for brands to connect with consumers in unprecedented ways.

This shift often leads to significant valuation increases for businesses tapping into these channels. However, there’s some hype to navigate. Just as some products weren’t suited for DTC due to high shipping costs or logistical challenges, not all products will thrive in what I call “agentic commerce” or AI-driven commerce. Some are better suited for traditional retail.

Consider this example: I ask ChatGPT, Gemini, or Grok to recommend the five best paint colors for my home based on specific criteria. It provides a list. I then ask, “What are the top brands selling these colors?” The AI responds and offers, “Would you like me to order this for you with two-day shipping from Amazon?” This streamlined process replaces hours of scouring Google, product review sites, or incomplete information sources.

This efficiency—faster, easier, and often more accurate—drives the market’s excitement for e-commerce brands today. Investors anticipate a new commerce medium, much like the DTC revolution a decade ago, transforming how brands connect with consumers.