ChatGPT Enters Ecommerce Just as Tariffs Threaten Holiday Pricing — What Brands Need to Know
AI meets ecommerce: A new era of product discovery is here.
Two disruptive forces are colliding — AI-driven shopping and rising global tariffs — and retailers need to adapt fast.
May 6th, 2025
Elliott Shami
Ecom Diversify
AI Discovery Is Rising — While Tariffs Threaten Holiday Margins
With ChatGPT now helping users shop and tariffs squeezing pricing power, ecommerce is entering a new era. Product discovery is becoming smarter, faster, and more competitive — but also more complicated as costs rise.
With over 1 billion product-related searches on ChatGPT in the past week alone, OpenAI has officially entered the ecommerce space.
Here’s how it works: when a user searches for a product — like “best budget coffee machine” — they’re given a curated list of options, complete with retailer links, brand names, and helpful labels like “Budget Friendly” or “Strong Brew.”
💡 No paid recommendations (yet) means organic visibility is up for grabs.
These recommendations are based on ChatGPT's reasoning, user intent, and quality signals — not advertising dollars. That levels the playing field for smaller brands and retailers looking to get discovered.
🛍️ “We want to make it simpler and faster to find, compare, and buy products directly in ChatGPT.” — OpenAI
📦 What This Means for Brands:
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Product visibility is now possible without ad spend
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You’ll need optimized product data (like Google Shopping Feeds)
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A sign-up list is open for brands to be notified once product feeds go live
👉 Join the waitlist here
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Meanwhile… Tariffs Are Disrupting Retailers’ Pricing Plans
As AI enhances shopping, global trade politics are doing the opposite. New tariffs on Chinese imports are triggering panic in boardrooms across the retail world — and the impact is expected to peak just in time for holiday shopping season.
Ali Furman, Consumer Products Leader at PwC, warns:
🧾 “No retailer wants to be the one that’s called out on social media for gouging the consumer.”
Major retailers are strategizing fast:
🏬 Retailer Reactions:
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Amazon CEO Andy Jassy sees this as an opportunity: “Just like 2020, this moment could help us grow market share.”
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Walmart is choosing loyalty over margins. Even as costs rise, they’re committed to keeping prices low, saying that two-thirds of their products are made or sourced domestically.
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Spreetail’s CMO emphasizes: “You don’t want to be the only high-priced brand at the party.”
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Revionics’ Matt Pavich predicts promo pullbacks: “We may go from 25% off to just 15% this holiday season.”
Expect tighter discounts, more transparent pricing, and renegotiations with suppliers.
With costs rising, many in the industry are calling these tariffs the “Christmas Tax.” Retailers may try to preserve trust by:
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Delaying price hikes
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Offering smaller, more strategic promos
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Communicating clearly about value and supply costs
📉 The risk? Lower margins.
📈 The opportunity? Win loyalty and trust from frustrated shoppers.
📣 Don’t Miss the Next Wave of Ecommerce
As tariffs squeeze profit margins and AI reshapes the way consumers discover products, the brands that act now will have a major advantage. Whether you're a startup looking for exposure or an established retailer aiming to stay competitive, now’s the time to prepare for the next generation of online shopping.
Want your products featured in ChatGPT’s new shopping experience