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AI shopping referrals drive higher-value traffic for Ulta and Etsy
Reuters said AI referrals generated 41% more revenue per visit than traditional channels, and Ulta reports roughly double conversion and purchase intent for shoppers from Gemini and ChatGPT.
AI shopping is increasingly becoming a more valuable source of online retail traffic, with new data suggesting generative AI users are converting at higher rates once they reach merchants. According to Adobe Analytics, cited by Reuters, 41% of U.S. consumers used generative AI for online shopping in June, and visitors referred by AI services generated 41% more revenue per visit than those coming through traditional channels, Yahoo Finance reports.
Ulta Beauty said shoppers arriving through Gemini and ChatGPT showed roughly twice the conversion and purchase intent, according to Yahoo Finance’s summary of the Reuters reporting. The article also notes that Etsy says customers may discover products through ChatGPT but generally return to Etsy to transact, implying the merchant retains the checkout relationship.
A key shift described in the coverage is that OpenAI ended its standalone Instant Checkout tool in March, moving toward product discovery followed by merchant-owned checkout. The article frames this as an arrangement where AI platforms can narrow choices and deliver higher-intent visitors, while retailers process orders and keep the chance to build a direct customer relationship.
The piece adds that the competitive question ahead is whether Ulta and Etsy can preserve this balance as other major platforms, including Google and Amazon, move closer to the transaction itself. It also argues that a shopper who asks for a specific recommendation, such as products for sensitive skin or a personalized gift, has already done more work than someone clicking a generic search result.