Summary:
Perplexity is launching a shopping assistant to streamline product discovery and purchasing.
Collaboration with Firmly.ai aims to enable online brands to sell directly through Perplexity.
Over 150 merchants have expressed interest in the platform since November's launch.
The platform allows retailers to retain customer data and transaction control.
Shopping-related queries have surged by fivefold since the launch of new features.
In the fall, the AI-powered search engine Perplexity began rolling out a shopping assistant and checkout experience aimed at reducing the time it takes for users to discover and purchase products on its platform.
Currently, Perplexity is collaborating with Seattle-based startup Firmly.ai to facilitate online brands of all sizes in selling directly through its shopping results. In an exclusive interview with Fortune, Perplexity's Chief Business Officer Dmitry Shevelenko stated that over 150 e-commerce merchants have shown interest in utilizing the platform since the launch of its shopping tools in November.
To broaden its shopping experience to thousands of online retailers, Perplexity needed a tech partner to connect them through a single integration, providing users with a seamless checkout experience while allowing retailers to retain control over customer data and transactions. “This allows us to focus on delivering the best user experience without delving too deeply into the merchant checkout,” Shevelenko explained.
Historically, major consumer internet companies like Google, Instagram, Pinterest, and Twitter have attempted to convert user attention into direct merchandise sales, often with limited success. However, interest in enabling users to purchase products wherever they encounter them has recently surged, fueled by the success of platforms like TikTok, which has revolutionized impulse buying habits.
“People want instant gratification,” said Kumar Senthil, CEO of Firmly.ai, whose technology supports these buy-anywhere experiences. “TikTok has created a mindset where users prefer a quick purchase over navigating through multiple clicks.”
Since the launch of its shopping features, Perplexity has seen a fivefold increase in shopping-related queries, although Shevelenko noted the challenge of presenting product recommendations without overwhelming users who may not be ready to purchase. “Sometimes, users are just researching, and bombarding them with purchase prompts may alienate them,” he stated.
Importantly, Perplexity does not take a cut from sales made through its search results, allowing retailers to retain all proceeds from purchases. Shevelenko emphasized that maintaining user trust is crucial, particularly as many consumers have grown skeptical of algorithm-driven services.
While Shevelenko did not directly mention Google, his boss, Perplexity’s CEO Aravind Srinivas, highlighted the strategic advantage of integrating purchases into the search engine rather than relying on auctioned sponsored results, stating, “Native transactions are the best way to capture AdWords revenue,” but acknowledged the need for time to refine the process.
Perplexity is banking on its partnership with Firmly to achieve a seamless shopping experience.
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