Flywheel launches GEO for AI search, TikTok Shop changes Smart Promotion pricing, Walmart acquires Vibe.co, Reddit strengthens its role in AI-assisted shopping
News #1. Flywheel unveils GEO service for AI-driven product discovery
As more shoppers turn to AI assistants to discover products, product content is taking on a new role. Flywheel has introduced a service designed to help brands improve visibility across AI-powered shopping experiences.
What happened
During the Cannes Lions International Festival of Creativity, Flywheel introduced Generative Engine Optimization (GEO). Rather than a standalone SaaS platform, GEO is a managed service in which Flywheel's specialists analyze, optimize, and maintain product content for generative AI systems.
Unlike traditional listing optimization tools focused on improving visibility within a specific marketplace, GEO is designed to help products surface in AI-generated recommendations across multiple shopping environments. According to Flywheel, the service is built around its proprietary AI Search Readiness framework, developed by studying how AI shopping assistants interpret product information. GEO evaluates titles, descriptions, specifications, and product attributes, identifies missing information, and recommends improvements without compromising existing marketplace optimization. The service currently supports retailers including Amazon, Walmart, and Target.Why it matters
Generative AI is becoming an additional product discovery channel alongside the AI assistants already embedded in marketplaces. While Amazon, Walmart, and other retailers use their own AI systems to improve shopping within their ecosystems, GEO targets a broader range of AI-powered shopping experiences. As a result, well-structured product content is beginning to influence visibility beyond a single marketplace. Flywheel positions GEO as a complement to traditional listing optimization rather than a replacement for it.
What it means for e-commerce sellers
Optimizing listings for marketplace search alone is no longer enough. As AI shopping expands, brands will increasingly need product content that can be accurately interpreted by generative AI across multiple discovery channels, both inside and outside marketplace ecosystems.
News #2. TikTok Shop switches Smart Promotion to a revenue-share model
TikTok Shop has changed how sellers pay for Smart Promotion. Instead of a fixed fee per order, costs are now tied directly to sales generated by the platform.
What happened
TikTok Shop has updated the pricing model for Smart Promotion, its AI-powered automated advertising tool. Sellers will now pay 3.5% of Gross Merchandise Value (GMV) generated through Smart Promotion instead of a fixed fee per order. During Global Campaign promotional events, the rate increases to 4.5% GMV.
The fee only applies to orders attributed by TikTok to Smart Promotion. The system automatically allocates advertising traffic, selecting products, audiences, and placements most likely to drive conversions.Why it matters
The update reflects a broader shift in how TikTok monetizes its AI-driven advertising tools. Rather than charging a flat operational fee, the platform now shares directly in the revenue generated through automated promotion. For sellers, advertising costs become increasingly tied to sales performance, particularly during major promotional events.
What it means for e-commerce sellers
Businesses using Smart Promotion should revisit their unit economics, especially ahead of seasonal campaigns. As automated promotion accounts for a larger share of sales, these commissions become another important component of customer acquisition costs.
News #3. Walmart expands its advertising business with Vibe.co acquisition
Walmart continues to invest in Walmart Connect by adding self-service connected TV advertising for businesses of all sizes.
What happened
Following the acquisition, Vibe.co's technology will be integrated into Walmart Connect, allowing advertisers to create, manage, and measure CTV campaigns from a single platform while leveraging Walmart's first-party shopper data for audience targeting and campaign measurement.
Why it matters
The deal extends Walmart's advertising capabilities beyond its marketplace. While Walmart Connect has primarily focused on on-site retail media, the addition of self-service CTV makes television advertising more accessible to smaller brands. It also strengthens Walmart's position as it competes with Amazon in the rapidly growing retail media sector.
What it means for e-commerce sellers
Brands selling on Walmart Marketplace are likely to gain easier access to upper-funnel advertising. As CTV becomes integrated into Walmart Connect, sellers will have additional opportunities to connect brand awareness campaigns with marketplace sales.
News #4. Reddit is becoming a key stop in the AI shopping journey
What happened
At Cannes Lions, Reddit also introduced new advertising capabilities, including AI-focused advertising formats and tools for analyzing community conversations. Since the research was commissioned by Reddit itself, its findings should be viewed with that context in mind, although the methodology and sample size were disclosed.
Why it matters
Reddit has become an increasingly important source of trust in the purchase journey. Rather than relying solely on AI-generated answers, many shoppers seek independent validation from real users before completing a purchase. As generative AI continues to evolve, community-driven discussions may play an even larger role in product discovery and recommendation systems.
What it means for e-commerce sellers
For brands, Reddit is becoming more than a niche discussion forum. Product reputation, authentic customer conversations, and active participation in relevant communities are increasingly important elements of a broader e-commerce strategy alongside marketplaces, brand websites, and social media.
Other E-commerce News
TikTok Shop introduces seller eligibility score for Affiliate
TikTok Shop has begun using a Creator Affiliate Eligibility Score to determine whether sellers can recruit new creators into the platform's affiliate program. Stores with low scores may temporarily lose access to affiliate partnerships. The score is based on operational metrics such as customer service quality, policy compliance, shipping performance, and order cancellations. TikTok has not yet published official documentation explaining how the score is calculated.
Amazon expands its Brand Elevation Program
Amazon has updated its Brand Elevation Program, adding new educational resources, expert guidance, and strategic recommendations for brand owners. The initiative is designed to help businesses make better use of Amazon Marketplace tools to grow sales and strengthen brand presence, although no major product or platform changes were announced.
Amazon launches self-service ads for Alexa+ conversations
Amazon has introduced self-service conversational advertising for Alexa+. Advertisers can now create campaigns that appear during conversations related to entertainment content such as movies and music. While the feature is not yet connected to product search, it marks another step in Amazon's effort to monetize AI-powered interfaces and expand its advertising ecosystem beyond traditional search placements.Book a call now…
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