Tech, ExplainedEnterprise SaaS and software
Concept

Conversational commerce

The shop inside the chat.

HOW IT WORKSThe customer optsin to messagesfrom the companyThe customer sends aquestion, or repliesto an offerA chatbot answers,recommends productsand builds a basketThe customer pays by alink inside the chatA person takes overthe chat when the botcannot helpThe whole sale happens in a chat app the customer already uses, with no app to download and no formto fill.HOW IT WORKSThe customeropts in tomessages fromthe companyThe customersends aquestion,or repliesto an offerA chatbotanswers,recommendsproductsand buildsa basketThe customerpays by alink insidethe chatA persontakes overthe chat whenthe botcannot helpThe whole sale happens in a chat app the customer already uses, with no app to download and no formto fill.HOW IT WORKSThe customer opts in tomessages from the company↓The customer sends a question, or repliesto an offer↓A chatbot answers, recommends productsand builds a basket↓The customer pays bya link inside the chat↓A person takes over the chat when the botcannot helpThe whole sale happens in a chat app the customer alreadyuses, with no app to download and no form to fill.
A customer who opted in writes to a company in a chat app, a bot answers and builds the basket, the customer pays inside the chat, and a person takes over when needed.
opens a page inside this one a page in the same scene a page in another scene a concept page a label only, with no page

Conversational commerce is selling to customers and serving them inside a chat conversation, on WhatsApp, SMS, Instagram messages or a website's chat window. The customer asks a question in a message, and a bot or a person answers, recommends a product and takes the order, all in the same chat. In India, it happens mostly on WhatsApp, because that is where most customers already spend their time on the phone.

Here is how it works in general. A company connects its own software to the messaging app. For WhatsApp, this is done through the WhatsApp Business Platform, an API that Meta, the owner of WhatsApp, offers to companies. An API is a set of commands through which one program can ask another to send or receive data. The customer first agrees to receive messages from the company. This agreement is called opting in. The customer then writes a message, or replies to an offer. A chatbot reads the message and answers. Companies build these bots on a conversational AI platform. Modern bots use AI models, so they can understand a question typed in Hindi, English or a mix of both. The bot shows products as pictures in the chat, adds them to a basket and sends a payment link, which the customer can pay by UPI. When the bot cannot help, it passes the chat to a person in the company's shared inbox.

Why do companies sell this way? A customer who is chatting is already interested, and does not have to download an app or fill in a long form. The chat also keeps the whole history, so the next conversation can start where the last one ended. Meta charges the company for many of the messages it sends, so each conversation has a cost.

Take, for example, a brand of home-made snacks. Its WhatsApp marketing platform sends a Diwali offer to customers who opted in, and a bot takes the orders that come back.

Consider a warehouse that needs 300 loaders before a festival sale. Blue-collar recruitment apps screen and hire workers over WhatsApp, because many of these workers do not use email.

Say a child in a government school is stuck on a fractions problem. With WhatsApp-based learning, the child asks an AI tutor in the same chat app that the family already uses.

How is conversational commerce different from agentic commerce? In conversational commerce, the bot acts on behalf of the seller: it answers the customer and sells to them. In agentic commerce, an AI agent acts on behalf of the buyer: it searches, compares and buys. Conversational commerce is also one channel among several in omnichannel customer service.

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Enterprise SaaS and software
E-commerce, travel and logistics
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