Google is testing a novel feature that enables shoppers in India to purchase products from Flipkart without having to leave the Gemini or AI Mode environment. This development aims to streamline online shopping and enhance user experience, as reported by TechCrunch.

A select group of users in India have begun noticing a “Buy” button on certain listings from Flipkart, which is owned by Walmart. By tapping this button, shoppers can proceed directly to the checkout process on Flipkart without navigating through multiple tabs.

This initial phase of the testing is limited to a small number of users and a select range of products, including smartphones, electronics, and mobile accessories. Most users continue to view standard Flipkart listings that do not offer this new purchasing option. The timing of this pilot is strategic, as Google reportedly plans to expand the initiative later in October, coinciding with India’s upcoming festive shopping season.

The festive period is significant for both Flipkart and Amazon, which traditionally offer substantial sales and discounts. By integrating the shopping experience directly into its AI capabilities, Google positions itself to capture user engagement and potential purchasing behavior at a critical time.

Integration of AI in E-Commerce

Google has been developing its artificial intelligence capabilities related to shopping since early this year, specifically with the introduction of its Universal Commerce Protocol (UCP). This open standard facilitates the interaction between AI agents and retailers, covering the entire shopping journey from browsing to checkout. Additional features implemented since then allow users to transition to a retailer’s site for finalising purchases.

The Flipkart trial, however, presents a distinct approach compared to Google’s standard checkout methods. Instead of a Google-branded checkout, users will encounter a Flipkart-branded purchasing flow, raising questions about the underlying technology enabling this feature. Meanwhile, Amazon’s listings appear in the same AI results but do not currently include a purchase option.

Implications for Affiliate Marketing

The emergence of the “Buy” button within Gemini could pose challenges for individuals involved in affiliate marketing, which is dependent on recommendations from bloggers, YouTubers, and deal sites. In this model, content creators earn a commission for referrals that lead to purchases. This system may be significantly disrupted if users can complete transactions directly through AI without visiting third-party review sites.

For example, if a user queries an AI for recommendations of smartphones priced under Rs 20,000 and finds a purchase option available immediately, they may bypass review sites entirely. This shift may consequently result in reduced traffic for these sites, leading to decreased potential earnings from affiliate commissions.

Moreover, considerations arise regarding the payment distribution for sales occurring within AI interactions, particularly since current link tracking methods were not designed for this context. Consequently, both Google and retailers could be incentivised to establish new referral or partnership programmes tailored to AI-driven shopping, potentially altering the flow of revenue in the e-commerce landscape.

Conversely, there may be cost savings for retailers on affiliate payments if purchases are made directly through the AI interface, while some publishers could still gain visibility if referenced by Gemini. At this stage, specific details about how affiliate relationships will be managed remain unconfirmed, with the ongoing test restricted to a limited array of products.

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