The e-commerce funnel has collapsed. The traditional journey (search → browse → compare → cart → checkout) is being compressed into a single conversational exchange. This is the most significant shift in e-commerce since the smartphone.
Immediate actions: 1) Join Shopify if not already. 2) Implement structured data/schema. 3) Opt into UCP and ACP programs. 4) Enable Copilot Checkout. 5) Build knowledge graphs for AI discovery.
Key risk: Being invisible to AI agents = losing access to a growing share of purchases. If your product data is unclear, buried, or inconsistent, agents won’t surface your products.
For Brands
Strategic priorities: 1) Invest in AI-readable product data. 2) Build brand agents (Microsoft platform). 3) Prepare for “Direct Offers” ad format. 4) Consider DTC to reduce Amazon reliance. 5) Monitor protocol traction.
Key risk: Brand becomes commodity when AI agents optimize purely on specs + price.
For Consumers
What changes: Faster, easier purchases via chat. AI handles research + comparison. More pricecompetition (potentially). What’s concerning: Less serendipitous discovery. Sponsored results may be opaque. Agent serves platform interests, not consumer interests (in ad-funded models).
The Amazon Question
Three scenarios: 1) Defense Wins (40% share + habit too strong). 2) Coalition Wins (UCP + ACP breaks Amazon’s grip). 3) Amazon Pivots (joins open protocols after seeing traction).
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
