Many worry that Agentic Commerce is a race to the bottom. The arrival of ‘perfect competition’ where all prices are known and so the lowest price wins. This fear is legitimate in that agents enable more pricing transparency using their reach and ability to compare. This argument misses one key factor: agents also expose differentiation. Customers will also ask for it.
The Gemma Scenario
Gemma is looking for a new fridge/freezer, ideally American style (i.e. big here in the UK). Hers has just died and doesn’t seem to be repairable. Price is only one factor of this purchase journey. Gemma lives a touch in the future so she is well versed with using agents to buy for her. She starts her search:
“I need a new fridge freezer. I’d like it to be American in style. At least two big doors, and needs to silver / metal in colour, not white or black. Show me at least 5 options from well known brands for reliability”
Reliability is important, the current one has only lasted 5 years. Gemma is me, of course, my problem this week! She reviews what the agent brings back. There’s some good reviews and selections and one that looks good.
“I like this Kenwood one you suggested. Where can I get it from and what is the price from each of the sellers?“
Off the agent goes, a mix of ads and non ads if the future just like it is now. The order might be dictated by some bidding and positioning.
“Actually I’ve had a thought, I have no way to get rid of my old one, or pick up a new one Can you remove any providers that don’t deliver, and remove those that won’t take my old one away and fit the new one?“
This is the crux of my argument. Suddenly the field narrows dramatically. Lots of people will sell and deliver something, very few have invested in the ability to take the old away, recycle it safely, and provide that installation service. This is a HUGE convenience for this type of purchase.
More examples and ways to differentiate
Let’s think of ten other examples:
Buying from a beauty brand that will also provide a complimentary colour matching service in store
Car servicing where they have a waiting room with WiFi and coffee while you wait and meeting pods for calls: or a pick up and drop back service
Delivery of furniture where it will also be assembled in your room of choice before leaving
Shed or other small building delivery that has a building service attached including minor electrics and plumbing
Luggage purchase with a complimentary engraving service to a make a gift a little more special
The ability to pay a deposit and then a final balance later once a product is ready (layaway) for more expensive items
Garden plant/tree delivery where they not only deliver but will plant it, stake it and check it in a few weeks
Bicycle delivery where they fit you to the bike (saddle adjustment, etc) and come back to service it after a year
Birthday gift delivery where the company guarantees a specific day and time of delivery to ensure it matches perfectly
Home office equipment bundle: desk, chair, monitor, adaptors, etc: all delivered and setup for you
There’s a clear theme here: service delivery is an opportunity to add some cash to cover the costs, but also adds significant convenience, less headache and more value than the product alone. It leads to less price sensitive customers not worrying about £10 here or there on certain product prices.
There are also other ways to differentiate:
Local payment options: if others don’t support them, this can be a big win
Longer guarantees or warranties
Stronger loyalty rewards or access as a result of purchase (whole other topic!)
Bundling / free gifts
Recycling / sustainability / donation on your behalf
So many possibilities.
What’s your amplification?
Agentic Commerce is seen as being a flattener of differentiation. Removing barriers and creating perfect competition. In my view: it amplifies differentiation. You get to choose how well amplified you are. Zero Differentiation x Agentic will still be zero. Significant differentiation x Agentic: large scale wins. Which will you be?