Retail Channels
27 March
How will ChatGPT integrate into the shopping experience?
Launches from Klarna, Newegg and Instacart offer early examples of product recommendations powered by generative AI.

ChatGPT's plugin for Klarna. (Courtesy photo)
Launches from Klarna, Newegg and Instacart offer early examples of product recommendations powered by generative AI.
ChatGPT's plugin for Klarna. (Courtesy photo)
ChatGPT is at the forefront of the conversation among technologists in 2023.
The chatbot’s combination of input in natural language and output that employs AI in creation is inspiring many of those who explore it to imagine new use cases.
Businesses have been among some of the early adopters of OpenAI’s technology, leading plenty of brands and retailers to consider how generative AI might fit into their workflows. With more experimentation, another question is floating around: How might ChatGPT fit into our everyday lives?
This is being addressed as uses of ChatGPT begin to arise for consumers. Ecommerce platforms are releasing some of the earliest tools that provide recommendations and inspiration for shoppers. Here’s a look at how Newegg, Instacart and Klarna see AI fitting into the shopping experience:
Consumer electronics is often a pacesetter in ecommerce, so it's perhaps not surprising to see Newegg emerge with one of the earliest integrations of ChatGPT.
The generative AI tool is now part of the online computer retailer's PC Builder, which allows users to customize a new desktop PC based on their specifications and budget. With the new feature, users can enter desired attributes into a designated search bar, and ChatGPT will evaluate and recommend component configurations.
It's just one way Newegg is integrating ChatGPT into its operations. Inside the business, the retailer is also using the AI tool as it makes changes to website text, customer service chat, customer email subject lines and SEO.
“We’re always evaluating our ecommerce technology to ensure we’re providing the best customer experience. Through testing, we’ve proven that ChatGPT has a practical use for Newegg based on the added quality and efficiency it creates,” said Lucy Huo, VP of application development for Newegg, in a statement. “We deployed ChatGPT to improve content both on-site and off-site to help customers find what they want and elevate their experience. AI doesn’t replace employees, but it adds resources so employees are available to handle more complex projects. We’re still in the early phases of AI but the benefits for ecommerce may be substantial.”
Shopping and fintech app Klarna said it is getting ready to go live with a new shopping experience that provides curated product recommendations using ChatGPT.
Klarna will offer a plugin on ChatGPT’s store. With this tool, users will be able to ask for shopping advice and inspiration. The results will include product links, which navigate to product pages on Klarna’s search and compare tool.
The goal is to make the product intuitive and easy to use. That means leaving some of the work to the application. Once the plugin is installed, ChatGPT chooses when to use it based on the question asked.
"I’m super excited about our plugin with ChatGPT because it passes my ‘north star’ criteria that I call my ‘mom test’, i.e. would my mom understand and benefit from this. And it does because it’s easy to use and genuinely solves a ton of problems – it drives tremendous value for everyone,” said Klarna CEO Sebastian Siemiatkowski, in a statement. “Klarna is in a unique position to leverage the best technology and data to help people discover new products and solve problems for consumers at every stage of the shopping journey, and we’ll continue innovating to bring these services to our 150 million consumers.”
(Photo via Instacart)
Grocery technology company Instacart is making ChatGPT a part of the experience of planning meals, and having ingredients delivered.
A new plugin in will combine ChatGPT’s capabilities with Instacart AI to create orders.
When users type in a question, the chatbot will create an Instacart order based on the responses. That means product recommendations become not only shoppable, but already added to cart.
Users can ask questions about meals that are open-ended about necessary ingredients, as well as based on time and dietary restrictions. Or, they can simply ask for inspiration.
“The Instacart ChatGPT plugin works best in helping people figure out what they’d need to make a particular meal or recipe, and helps them account for ingredients they may already have at home or specific dietary restrictions, create an instant shopping list, and get ingredients delivered to their door so they can start cooking,” wrote JJ Zhuang, Instacart’s Chief Architect. “In the future, we’ll be rolling out new capabilities, like the ability to help people shop recipes or ingredients that are on sale or in season.”
Klarna and Instacart's plugins show how ChatGPT can help pave a path to the product page. It offers a hint for ecommerce builders: Generative AI can be a tool to help shoppers find products just as much as it is to create.
These features are just rolling out, so consider them early examples of how ChatGPT may find a place in the shopping experience. Given this fast start, look for more ways generative AI can reshape product discovery and the path to purchase.
Dealboard has funding and M&A updates from ecommerce aggregators and forecasting software.
Hunter is joining ABG's portfolio. (Courtesy photo)
This week, the aggregator space is active with M&A, IKEA is ready to roll out newly-purchased warehouse management software and Authentic Brands Group acquired a boot icon. Plus, there’s new investment to report for YouTube influencer Emma Chamberlain’s coffee brand and retail forecasting.
Here’s a look at the latest deals:
Chamberlain Coffee, the consumer brand founded by YouTube influencer Emma Chamberlain, raised $7 million in new funding.
The financing included backing from existing investors including Blazar Capital, Chamberlain and United Talent Agency. New investors include Volition Capital, Electric Feel Ventures, L.A. Libations and Noah Bremen, founder of PLTFRM.
The new funding follows the launch of a Ready-to-Drink (RTD) product and coffee pods. Previously, the brand raised a Series A in August 2022.
"Creating a uniquely inviting coffee brand has been my dream for so long now, and having key investors back us allows us to build Chamberlain Coffee in ways that feel fresh and exciting,” said Chamberlain, in a statement. “There are so many products I am eager to develop and projects I'm excited to get working on. With such an incredible team and group of investors I am more excited than ever to see what the future holds for Chamberlain Coffee."
Impact Analytics, a software company for retail supply chain and merchandise planning, raised new funding from Vistara Growth.
The new investment, the amount of which was not disclosed, comes after Impact raised funding in February 2021 and October 2022 from Argentum.
The funding will help Impact Analytics further develop its Impact Analytics SmartSuite product portfolio, which is designed to help optimize forecasting, merchandising and end-to-end lifecycle pricing. Rather than the traditional forecasting approach of basing decisions on the preceding year, Impact Analytics applies a model that includes 150 variables from internal and external sources, while combining recency and history. Clients include BJ's Wholesale Club, Dick's Sporting Goods, Puma and Tapestry.
Selva Ventures, a venture capital firm focused on consumer brands that promote healthier living, closed its second fund at $34 million, TechCrunch reported.
With the new funding, Selva will invest in brands across categories including health, wellness, beauty and personal care. The fund expects to write checks of $1-2 million in seed and Series A startups, while assisting in areas like finance, operations and retail partnerships.
Backers of the second fund include Unilever Ventures, PagsGroup and Obelysk.
Nautica and Forever 21 owner Authentic Brands Group acquired the intellectual property of Hunter, a 160-year-old British outdoor lifestyle brand known for its Wellington boots.
With the deal, ABG appointed longtime partners Batra Group and Marc Fisher to execute retail and ecommerce operations, as well as continue to expand the brand in the UK and U.S., respectively.
“At the intersection of fashion and outdoor, Hunter introduces another elevated global brand to Authentic’s diverse Lifestyle portfolio,” said Authentic CEO Jamie Salter, in a statement.
Terms of the deal were not disclosed.
The investment arm of IKEA parent Ingka Group acquired the warehouse management software platform Made4Net.
As a result of the deal, Made4Net’s software will be deployed across IKEA’s 482 stores and fulfillment centers. Made4Net will continue to operate as an independent subsidiary of Ingka, with a headquarters in New Jersey. CEO Duff Davidson will remain at the helm of the company.
“Our business currently requires a better fulfillment operations system with more accurate data that better supports handling for our customers,” said Tolga Öncu, head of retail at Ingka Group, in a statement. “Our goal is to become leaders of life at home, serving more people in an omnichannel reality, whenever and however customers choose to meet us.”
European ecommerce aggregator SellerX acquired Elevate Brands, a U.S.-based aggregator.
The combined companies will be known as SellerX Group. It will comprise a portfolio that includes 80 Amazon-native private label consumer brands in categories including sports and outdoors, home, mobile accessories, pets and consumables. The portfolio will span over 40,000 products.
With the deal, SellerX Co-CEOs Philipp Triebel and Malte Horeyseck will lead SellerX Group, while Elevate Brands cofounders Ryan Gnesin, Jeremy Bell and Robert Bell will remain in key leadership positions.
“This acquisition combines our know-how and diversified portfolios of strong brands with a market-leading technology platform and strong operational infrastructure,” said Triebel, in a statement. “By leveraging our combined strengths, I am convinced we are well-positioned to drive further consolidation in the industry.”
Ecommerce aggregator Society Brands acquired Wolf Tactical, a tactical gear company.
Founded in 2017 by Tim Wu, Wolf Tactical makes products including DC belts, range belts to weighted vest and tactical backpacks.
"I started Wolf Tactical by myself as a side hustle with very limited knowledge of business and entrepreneurship. A combination of hard work and relentless learning allowed me to build it into a multi-million-dollar business," said Wu who will remain as brand president, in a statement. "With the help of Society Brands, I have access to untapped potential that I would not be able to achieve by myself.”