Shopping online just got simpler. Conversational commerce lets you shop, ask questions, and pay - all through a quick chat. No more endless clicks or complicated checkouts.
Here’s why it matters:
Faster purchases: Buy directly in chat without leaving the app.
Secure payments: Built-in systems protect your data.
Instant help: AI chatbots solve checkout problems 24/7.
Fewer abandoned carts: Personalized chat tools recover lost sales.
With global spending through conversational commerce expected to hit $290 billion by 2025, this trend is reshaping how businesses connect with customers. AI-powered tools make shopping feel personal and hassle-free, turning browsers into buyers.
Want to know how it works? Keep reading for the details.
E-commerce Use Case l App Navigation & Checkout l Alan AI
How Conversational Commerce Makes Checkout Easier
Traditional online checkouts often involve multiple steps and lengthy forms, which can lead to frustration and high cart abandonment rates. Conversational commerce simplifies this process by enabling shoppers to complete their purchases directly through chat interactions. This approach removes common obstacles, making the entire experience quicker and more convenient.
Buying Products Directly in Chat
One standout feature of conversational commerce is the ability to shop and pay without ever leaving the chat interface. Instead of redirecting customers to external websites or payment portals, AI-powered chatbots manage the entire transaction within the messaging platform itself.
Here’s how it works: customers can ask questions, receive tailored product recommendations, and finalize their purchase - all in one seamless conversation. Sales agents can even send "Pay Now" links directly through the chat, allowing customers to complete their transactions instantly when they’re ready. This straightforward method is gaining traction, with chatbot-driven retail sales projected to hit $112 billion by 2023.
These AI chatbots act as personal shopping assistants, guiding customers through product discovery and purchase decisions in real-time. The result? A smooth transition from browsing to buying that feels natural and effortless.
Built-In Payment Systems for Safe Transactions
Security is one of the biggest concerns for online shoppers, and conversational commerce platforms address this by integrating secure payment systems directly into the chat. These systems comply with PCI-DSS standards and use tokenization to safeguard sensitive payment data.
For U.S. merchants, there are several reliable payment processing options. Popular platforms include Stripe and Square, both charging 2.9% + $0.30 per transaction, and PayPal, which costs 3.5% + $0.49 per transaction. Shopify Payments offers similar rates, starting at 2.9% + $0.30 per transaction.
Digital wallets are becoming increasingly popular for their ability to store payment information securely and enable fast, contactless transactions via NFC technology. Many of these wallets also include features like transaction tracking and rewards programs, adding even more convenience for users.
In April 2025, Mastercard introduced Agent Pay, an AI-integrated payment system designed to enhance security and transparency in conversational commerce. Built on platforms like Microsoft Azure OpenAI Service, it uses Mastercard Agentic Tokens to protect transactions while giving users complete control over their payment experience.
"Mastercard is transforming the way the world pays for the better by anticipating consumer needs on the horizon. The launch of Mastercard Agent Pay marks our initial steps in redefining commerce in the AI era, including new merchant interfaces to distinguish trusted agents from bad actors using agentic technology."
– Jorn Lambert, chief product officer at Mastercard
The payment processing market is expected to surpass $190 billion by 2030, driven by advancements in fintech that make transactions faster, simpler, and safer.
Instant Help for Checkout Problems
Confusion during checkout can be a dealbreaker for many customers. Traditional e-commerce sites often leave buyers stranded when they encounter issues like unclear shipping costs, payment errors, or questions about return policies. Conversational commerce solves this problem by offering instant, AI-powered support available around the clock.
AI chatbots can automatically handle up to 70% of sales and service inquiries, reducing response times by an impressive 99.5%. Whether customers need details about shipping fees, delivery times, or payment options, they get immediate answers without the delays of email or phone support.
This instant assistance has a noticeable impact on customer satisfaction. Chatbots improve satisfaction scores by 30% and save time for 61% of U.S. consumers thanks to their 24/7 availability. For more complex issues, chatbots can seamlessly transfer the conversation to a live agent, ensuring customers don’t have to repeat themselves.
Brands like Sephora have embraced AI chatbots to provide tailored product recommendations, significantly boosting conversion rates. These smart bots also enhance the checkout experience by highlighting current deals and discounts. They guide shoppers through the entire process, from answering product questions to providing order updates and facilitating secure payments - all while ensuring a smooth and satisfying checkout journey.
Stopping Cart Abandonment with Chat Tools
Cart abandonment is one of the biggest challenges for online retailers, with nearly 70% of shoppers leaving their carts behind before completing a purchase. This accounts for an estimated $18 billion in annual lost revenue across various brands. Conversational commerce tools, like AI chatbots, step in to address this issue by actively engaging with customers during the shopping process.
Active Support During Checkout
The key to preventing cart abandonment is resolving customer hesitation in the moment. AI-powered chatbots can identify when shoppers linger on product pages or pause during checkout and step in with real-time assistance. These tools are especially effective when customers add items to their cart but hesitate to proceed or spend too much time on a specific checkout step. By personalizing interactions - using customer names, referencing browsing history, and offering tailored suggestions - chatbots make the experience feel more human and engaging.
When hesitation arises, AI can offer timely incentives to encourage customers to complete their purchase. For instance, if a shopper is comparing shipping costs across tabs, a chatbot might offer free shipping. If price is the issue, a limited-time discount could push the decision forward. A great example of this approach in action is Hertz Sweden, which used Kindly's Conversational AI Chatbot alongside conversion optimization tools to increase direct revenue by 23%. And when proactive support doesn’t seal the deal, follow-up messaging becomes essential.
Follow-Up Messages for Left-Behind Carts
Even after a customer abandons their cart, AI chatbots can re-engage them through follow-up messages. These tools can recover 20–30% of abandoned carts by sending personalized, non-intrusive reminders. SMS is particularly effective for this purpose, with an impressive 98% open rate within the first three minutes and a click-through rate of around 30%. The immediacy of text messages, combined with smart personalization - like mentioning the customer’s name or highlighting specific items left in the cart - makes it a powerful recovery strategy.
These SMS campaigns often deliver a strong return on investment, with some achieving ROI rates exceeding 10x. The most effective follow-ups include a mix of personalization, urgency, clear incentives, and a friendly tone. Typically, the first message is sent within a few hours of abandonment, followed by additional reminders over the next day or two.
Fixing Problems That Cause Abandonment
In addition to offering support and follow-ups, conversational commerce tools help solve common issues that lead to cart abandonment. Many shoppers abandon their carts due to confusion about shipping costs, payment errors, or uncertainties around product sizing and return policies. AI chatbots excel at providing immediate answers, helping customers overcome these hurdles without leaving the checkout process.
For example, Schibsted worked with Kindly to create targeted cart abandonment messages, which boosted total conversion rates by 11% across its digital platforms, including newspapers and magazines. Chatbots address questions instantly, reducing frustration and keeping customers on track to complete their purchase. By reassuring shoppers and providing clear information when they need it most, these tools transform hesitation into confidence, ultimately reducing cart abandonment rates.
With their ability to offer immediate support, personalized follow-ups, and problem-solving, chat tools are a game-changer for retailers looking to reclaim lost sales.
Improving Customer Experience with Personal Touch
Conversational commerce goes beyond just tackling cart abandonment - it strengthens customer relationships by offering a more personalized shopping experience. When shoppers feel heard and supported throughout their journey, they’re more likely to complete purchases and become loyal customers. This personal connection is achieved through smart product recommendations, instant assistance, and seamless after-sales support.
Custom Product Suggestions
AI-powered tools take customer data, like browsing habits and purchase history, and turn it into tailored product recommendations. A standout example is Amazon’s recommendation engine, which drives about 35% of the company’s total revenue. It works by analyzing what customers have viewed, purchased, and preferred, along with data from similar shoppers.
The numbers speak for themselves. Personalized product suggestions can boost purchase rates by 70% and increase average order values by 33%. Additionally, AI-driven shopping experiences help retain customers, with 44% of repeat purchases attributed to personalization worldwide.
Brands like Nike and Sephora show just how effective this can be. The Nike App uses AI to dig into user data, offering workout gear and footwear tailored to individual fitness goals and previous purchases. It even provides styling advice and interactive shopping features. Meanwhile, Sephora’s Virtual Artist app uses AI and augmented reality to recommend makeup shades based on skin tone and facial features, helping shoppers feel confident in their choices while reducing returns.
By collecting and analyzing customer data, brands can deliver recommendations that feel helpful rather than intrusive. These suggestions not only encourage purchases but also complement a smooth checkout process.
24/7 Support in Clear American English
Personalized recommendations are just one piece of the puzzle. Round-the-clock support plays a huge role in building customer trust. Today’s shoppers expect immediate assistance - 77% want to connect with someone as soon as they reach out to a company. Conversational AI meets this demand head-on. In fact, 74% of consumers say they’d choose a chatbot over a human agent for simple questions, and 62% would prefer a chatbot if it meant avoiding a 15-minute wait for help.
The key to successful 24/7 AI support lies in its execution. Advanced natural language understanding ensures that chatbots provide responses that feel natural, consistent, and timely.
Lightspeed’s experience highlights how effective this can be. Angelo Livanos, Senior Director of Global Support at Lightspeed, shared:
"Fin is in a completely different league. It's now involved in 99% of conversations and successfully resolves up to 65% end-to-end - even the more complex ones."
This type of support isn’t limited to the shopping stage - it extends seamlessly into post-purchase interactions. Transparency is vital, though. Customers should always know when they’re speaking with AI, and there should be an easy way to escalate to a human agent if needed. It’s worth noting that 68% of consumers say they wouldn’t use a company’s chatbot again after a bad experience, making quality and reliability non-negotiable.
Making After-Purchase Support Simple
After the sale, conversational commerce continues to shine by offering instant order tracking, hassle-free returns, and proactive customer service. These features matter - a lot. About 78% of consumers say they’ve made a purchase decision based on the quality of customer service, and 94% report that a positive service experience makes them more likely to shop with the same brand again.
Modern shoppers prefer messaging over more traditional support options. A whopping 85% of mobile users would rather interact with brands via messaging than email or phone calls, and 70% expect a conversational experience when reaching out to businesses. This makes conversational tools a perfect fit for post-purchase support.
Take Eye-oo, for example. They use an AI chatbot to handle customer inquiries about order tracking, shipping costs, return policies, and more - all in real time.
Speed and availability are critical. Whether it’s tracking an order late at night or starting a return over the weekend, conversational tools ensure customers get the help they need, when they need it. And it’s not just about quick fixes - these tools can also manage more complex requests, like scheduling returns or processing refunds, creating a frictionless experience that fosters loyalty.
"There are a lot of cases for conversational commerce that are emerging, like a scenario where you need to reschedule your appointment or, for retailers, where you're looking to do a return or a refund." - David Rusenko, head of eCommerce at Square
These post-purchase conversations also open doors for brands to gather feedback, provide product tips, and suggest complementary items. Each interaction strengthens the bond with the customer and encourages them to come back for more.
Using lookfor AI Agent for Shopify to Improve Checkout
Shopify merchants can elevate the checkout experience with lookfor AI Agent - an omni-channel platform that enables merchants to deploy specialized agents to automate tasks, increase sales, and create a smoother shopping journey.
Real-world examples highlight its potential: BBQ Québec achieved a staggering 5,800% ROI through personalized recommendations, while Acero Padel boosted sales by 25% and saw an 8X ROI by leveraging competitor analysis.
Building on these successes, lookfor AI Agent makes checkout smarter and more intuitive by automating product suggestions.
Automating Custom Product Suggestions
lookfor AI Agent takes the guesswork out of product suggestions by analyzing customer behavior and integrating interactive quizzes during checkout. These automated suggestions not only help customers discover related or complementary products but also increase the average order value. For shoppers on the fence, the AI can propose tailored alternatives or add-ons to meet their needs.
Interactive quizzes are a standout feature, seamlessly guiding customers to the right choices during checkout. This not only builds buyer confidence but also reduces cart abandonment rates.|
Take Nona Coffee, for example. Founder Melodi M. shared how lookfor transformed their approach:
"Lookfor has made it straightforward to identify what our customers are searching for. Using this data, we developed products tailored to their needs, which helped us increase our sales significantly."
By automating 80% of their support tickets, Nona Coffee achieved a 12X ROI. They used lookfor's reasoning engine to provide automated answers on product details and brewing tips. Merchants can also fine-tune these recommendations by using Shopify tags to control which products the Shopping Assistant suggests.
Offering Discounts Through Smart Agents
lookfor’s discount agents take personalized promotions to the next level by generating single-use discount codes in Shopify, tailored to a shopper’s buying stage and preferences. By observing shopper behavior, the system ensures discount offers feel timely and aligned with the customer’s journey - never pushy. Merchants can customize the tone of these promotions, whether it’s a low-pressure educational approach or one that creates a sense of urgency, all while staying true to their brand.
These automated discounts work alongside personalized recommendations to make checkout more engaging and effective.
Making Support Easier with AI Chatbots
lookfor’s AI chatbots simplify customer support during checkout by managing common questions that could otherwise lead to abandoned carts. From order tracking to updating shipping addresses, answering product-related inquiries, or clarifying terms and conditions, the chatbot offers instant, 24/7 support.
For example, Adventure Shop uses lookfor’s chatbot to provide quick, database-driven answers to customer questions. Similarly, bikesattel.at allows shoppers to check order status, ask product questions, or review policies with instant responses, freeing up their support team to handle more complex issues. OpenELAB Technology Ltd. highlighted how the chatbot’s engaging tone helps recommend products effectively, significantly reducing pre-sales support needs. Meanwhile, JordiLight reported an 18% increase in customer engagement, a 75% reduction in support costs, and an 11X ROI after implementing a custom knowledge base and unified platform with lookfor’s help.
The platform has earned a perfect 5.0 rating on the Shopify App Store, based on 27 reviews. Merchants frequently praise the chatbot’s ability to handle routine inquiries, provide instant answers, and deliver personalized product recommendations that enhance the customer experience.
Conclusion: The Future of Checkout with Conversational Commerce
Conversational commerce is reshaping the checkout process, turning it into a more intuitive and tailored experience. With eCommerce sales expected to exceed $8.1 trillion by 2026 and conversational commerce growing at an annual rate of 23.5% between 2022 and 2028, the trajectory of commerce is clear.
Customer service plays a pivotal role in this shift - 90% of shoppers state that positive service influences their decision to return. At the same time, mobile devices are projected to account for 43.7% of all eCommerce sales. For U.S.-based Shopify merchants, conversational commerce not only simplifies the checkout process but also enhances customer satisfaction. Unlike the passive nature of traditional eCommerce, this approach uses AI-driven agents to actively guide shoppers through their journey.
These trends highlight the growing importance of real-time interactions and deeper customer insights. AI-powered tools make buying easier by offering personalized guidance and enabling meaningful, targeted interactions. With 54% of consumers discovering new products via social media and nearly 94 million U.S. households expected to own smart speakers by 2027, adapting to these conversational channels is becoming essential. These shifts emphasize the need for merchants to adopt AI solutions that enhance every step of the checkout process.
Tools like lookfor AI Agent for Shopify demonstrate how merchants can bring these advancements to life. By automating product recommendations, delivering personalized discounts, and offering 24/7 support, these tools help businesses stay ahead. As voice commerce grows and mobile optimization becomes a must-have, Shopify merchants who embrace conversational commerce position themselves for measurable success. Ultimately, transforming checkout into an engaging conversation is key to building stronger, lasting customer relationships.
FAQs
How does conversational commerce keep my payment information secure during checkout?
When it comes to conversational commerce, keeping your payment details safe is a top priority. Platforms rely on encryption and secure payment gateways to protect sensitive data throughout the entire checkout process, ensuring your information stays secure.On top of that, many platforms use authentication methods like two-factor authentication via messaging apps. This extra step helps confirm transactions and reduces the risk of fraud. Together, these measures create a shopping experience that's both secure and hassle-free.
How do AI chatbots help reduce cart abandonment and improve checkout experiences?
AI chatbots are game-changers when it comes to tackling cart abandonment. By providing real-time, tailored support, they help shoppers navigate their concerns on the spot. Whether it’s answering questions, suggesting products, or addressing last-minute doubts, chatbots make the checkout process feel effortless and interactive.On top of that, they excel at automating follow-ups. Chatbots can send timely reminders or even sweeten the deal with exclusive discounts to entice shoppers back to their abandoned carts. This approach not only improves the overall shopping experience but also boosts conversion rates and brings in more revenue for businesses.
How do conversational commerce tools create a more personalized shopping experience?
Conversational commerce tools, powered by AI-driven chatbots and voice assistants, bring a personal touch to online shopping by offering real-time, tailored interactions. These tools analyze customer preferences and behaviors to provide personalized product recommendations, custom messages, and even exclusive promotions, creating a shopping experience that feels more engaging and customer-centric.By stepping in at crucial moments - like answering questions or resolving concerns during checkout - these tools help smooth out potential friction points. This proactive approach not only reduces cart abandonment but also boosts customer satisfaction, making the entire shopping process feel effortless and individually tailored.
