As the landscape of agentic AI evolves, retailers are increasingly exploring the potential for customers to complete transactions without direct engagement within their ecosystems. This technology, which leverages third-party platforms, aims to enhance customer experiences by reducing friction between the research phase and final purchases.
However, the rise of agentic commerce raises significant questions about ownership of the customer experience and associated data. As AI vendors advance their offerings, a prevailing sentiment is emerging that the retailer will retain the title of “merchant of record,” allowing them to uphold their brand identity during customer interactions on these platforms. Notably, both Google and OpenAI have integrated this terminology into their protocols, emphasizing the importance of keeping retailers firmly in control of their customer relationships.
This issue became particularly salient during discussions at the recent National Retail Federation Big Show, where major retailers shared their perspectives. For instance, Rob Frieman, CIO at URBN, emphasized the necessity of maintaining brand connections amidst the challenges of agentic commerce. This month, URBN enabled direct checkout options for its brands, including Urban Outfitters and Anthropologie, via Microsoft Copilot. Frieman stated that it is “critical” for customers to have the same experience as those purchasing directly from the brand, underlining the importance of a seamless and brand-consistent journey.
Despite the advantages of a frictionless experience from the consumer’s viewpoint, Frieman noted the complexities behind the scenes. URBN must ensure real-time inventory checks, accurate tax calculations based on shipping data, and other necessary actions to create a smooth transaction experience. He believes that this early adoption of agentic commerce will equip URBN with valuable data to enhance customer interactions in the future. “It’s a learning opportunity,” Frieman remarked, highlighting the evolving nature of customer engagement.
Meanwhile, Fiona Tan, CTO at Wayfair, reinforced the notion that customers remain connected to the retailer, regardless of the platform. She pointed out that whether a purchase is made directly through Google’s platform or via Wayfair’s website, the customer experience should remain consistent. “People want to hear that we’re gonna look after you, your transaction, your customer service, your delivery, etc.,” she said, emphasizing the retailer’s responsibility in ensuring smooth customer service and returns.
For Wayfair, managing returns is particularly crucial, especially as a home goods retailer, where large items complicate logistics. Tan expressed concern that third-party AI platforms may lack the necessary capabilities to handle such transactions, making it essential for Wayfair to retain its thorough returns policy regardless of the sales channel.
Home Depot views agentic AI as a significant evolution in search technology, allowing for a direct transition from discovery to purchase and beyond. According to CIO Angie Brown, while the specifics of agentic AI’s future remain uncertain, the retailer’s presence throughout the customer experience is vital. She stated, “Maintaining the merchant of record is key for us because when you think about this buying experience, it’s not just about the research that you do beforehand on the products or the projects.”
Brown emphasized that a retailer’s engagement in customer service and returns is crucial. By positioning themselves as the merchant of record, Home Depot can ensure its brand remains integral to the overall experience. This reflects a broader shift toward recognizing the importance of brand identity in the face of rapidly advancing technology.
As agentic commerce continues to develop, retailers face the challenge of balancing technological innovation with the need for authentic brand connections. The insights shared at the NRF Big Show illustrate a growing awareness within the industry of the need to adapt strategies that prioritize customer experience while ensuring that key relationships are preserved. This evolution not only informs current practices but also shapes the future of retail in a landscape where customer expectations are increasingly influenced by technology.
National Retail Federation | Microsoft | URBN | Wayfair | Home Depot | OpenAI
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