Podcast Summary: The My Wife Quit Her Job Podcast with Steve Chou

Episode 611: The Shopify Features That Are Exploding Sales For Big Brands With Kurt Elster
Date: October 16, 2025
Host: Steve Chou
Guest: Kurt Elster (Founder of Ethercycle; Host of The Unofficial Shopify Podcast)

Episode Overview

This episode delves into the latest Shopify features and AI-powered strategies that are driving massive growth for big e-commerce brands. Steve Chou and Kurt Elster, two highly experienced e-commerce veterans, dissect significant changes in the Shopify ecosystem, especially around AI, SEO, live chat agents, and category optimization. The discussion is filled with hands-on tactics, practical warnings, and engaging banter, making it relevant for both Shopify merchants and a broader e-commerce audience.

Key Discussion Points & Insights

1. Navigating Tariffs in E-commerce

Timestamps: 03:09–05:39

• Tariffs are causing confusion and unpredictability for merchants.
• Best practice seen by Kurt: Surface tariff/duty messaging at checkout, especially for international orders.
  • Example: Set up dynamic notifications based on customer address and Harmonized System (HS) codes.
• Some merchants are instead increasing prices quietly to absorb tariff costs.
• Quote:

  “At no point have I been able to tell you what tariff you may or may not pay on what order when. Like that's what's so confusing and concerning about it.” — Kurt Elster (03:59)

2. Shopify’s AI Investments and Standout Features

Timestamps: 05:39–11:04

• Shopify has heavily invested in AI frameworks; initial features were geared toward developers.
• Shopify Sidekick has seen significant improvements, moving from “hit or miss” to “remarkably helpful” for admin analytics.
  • It can now analyze sales by size/color for inventory forecasting.
• AI-generated website design:
  • Theme generator is decent as a starting point for new users.
  • The big breakthrough: block-level AI code generation in the theme editor—users can prompt for custom widgets or blocks without writing code.
• Quote:

  “You type one sentence, wait a minute, it pops back, and it often it works. It's really cool.” — Kurt Elster (08:51)

3. Live Chat Sales Agents & Virtual Assistants

Timestamps: 11:12–16:52

• Live chat, particularly AI “virtual sales consultants,” proactively engage customers with targeted questions and recommendations.
• These bots mimic in-store associates, reference specific product details (meta fields), and boost AOV.
• Kurt warns about over-attribution (taking credit for sales not directly influenced by the bot).
• Steve shares his apprehension about bots going off-script and describes his own solution: an AI-driven related products engine using image embeddings.
• Quote:

  “It asks you a question that it thinks it has the answer for. 'Would you like to know more about the ingredients?'... It's very human like, and it does not identify itself as AI up front.” — Kurt Elster (13:14)

• Steve’s related products AI increased AOV by 17%.

4. AI Data Integrations: Shopify Knowledge Base & ChatGPT Ties

Timestamps: 19:19–23:16

• Shopify Knowledge Base app tracks how often products are recommended by AI search bots (e.g., Perplexity, ChatGPT).
• Introduction of MCP (Model Context Protocol): structured Q&A integration between third-party AI and Shopify databases.
• The future: direct product info and even checkout through AI platforms, not just the web store interface.
• Steve and Kurt reminisce about “native checkout” attempts by Meta/TikTok that fizzled but note Shop Pay’s ongoing success.
• Quote:

  “I think this stuff is early. Early but moving fast.” — Kurt Elster (21:56)

5. The SEO Renaissance & AI-Powered Optimization

Timestamps: 24:04–29:18

• E-commerce brands are prioritizing SEO again—classic and technical.
• Structured data (rich snippets, schema) is crucial for both Google rankings and AI (large language model) queries.
• AI tools/scripts now automate time-consuming SEO tasks, from filling in missing titles/descriptions to generating alt text.
• Both Steve and Kurt noticed record organic search highs after implementing these improvements.
• Shift is occurring: more research and purchase journeys will start directly in AI search engines.
• Quote:

  “Now you know the whole thing, including running it, babysitting it, then reviewing it. It's like an hour at most. That's incredible.” — Kurt Elster (26:36)

6. On-Site Search & Internal Recommendations

Timestamps: 29:18–30:44

• Steve uses a rag (retrieval-augmented generation) database to dramatically improve the relevancy of his on-site search engine.
• His AI search metrics: 66% of searches become clicks; 23% of those convert.
• Sidebar filters less necessary thanks to AI search’s accuracy.
• Kurt jokes about relying more on Claude than ChatGPT for certain creative/writing tasks.

7. Category (Collection) Page SEO—“Slices” & Long-Tail Search

Timestamps: 30:44–34:38

• Easiest (and most impactful) pages to rank in Shopify are collection/category pages.
• SEO strategy: slice categories into highly specific sub-collections for long-tail searches.
  • AI handles tedious tagging/filtering via spreadsheet work.
• Merchants often worry about a proliferation of subcategories, but these don’t have to clutter menus—just exist for search/discovery.
• The main menu should stay lean—no more than 7 items for usability.

8. Essential Shopify Apps and the Future of the App Store

Timestamps: 34:38–39:49

• Kurt’s minimal app recommendations:
  • First-party/admin utility apps (e.g., Knowledge Base, Search & Discovery, Shopify Flow).
  • Matrixify for bulk exports/updates.
• Fewer “must-have” front-end apps; much can be achieved with custom widgets (using AI tools like Claude).
• DIY (code your own) is more feasible than ever but beware of security when “vibe coding” (especially authentication).
• App categories that solve real workflow pain remain valuable (e.g., order editing, tracking, upsells).

9. Strategies to Boost Average Order Value (AOV)

Timestamps: 39:05–43:10

• Focus: AOV before conversion rate optimization.
• Key tactics:
  • Upsell/cross-sell via product pages, cart drawers, checkout pop-ups, and post-purchase offers.
  • Free gift with purchase, progress bars for free shipping, and mix of AI- and rules-based recommendations.
  • Example: post-purchase offer of a second unit of the same (consumable) product at a discount is a consistent winner.
• Kurt reveals he’s started developing his own Shopify apps to fill specific AOV-boosting gaps.

10. Analytics Tools & Heat Mapping

Timestamps: 43:18–45:44

• Microsoft Clarity (free) is Kurt’s go-to for heatmapping and session recording (now with Shopify integration and built-in AI).
• GA4 (Google Analytics 4) is much maligned for its UX; Steve and Kurt agree Shopify Analytics is simpler, and AI assistants (Sidekick, ChatGPT) can help pull more complex reports.

11. Overhyped AI Tools & Sober Warnings

Timestamps: 46:04–47:59

• Caution: tons of AI-powered Shopify apps do little more than wrap ChatGPT or other LLMs (large language models).
• DIY may yield better results for technical merchants (cheaper, more customizable).
• The “dream” of true agentic AI (where agents can autonomously operate the admin) is “proof of concept” but not yet practical or safe.
• Quote:

  “So many of these tools are just… wrappers for ChatGPT… you're really not adding value beyond the interface and the wrapper.” — Kurt Elster (46:19)

• Kurt still recommends a mix of caution and experimentation, especially with anything that touches sensitive data.

Notable Quotes & Memorable Moments

• On the unpredictability of tariffs:

  “At no point have I been able to tell you what tariff you may or may not pay on what order when. Like that's what's so confusing and concerning about it.” — Kurt Elster (03:59)

• On Shopify’s AI-powered theme building:

  “You type one sentence, wait a minute, it pops back, and it often it works. It's really cool.” — Kurt Elster (08:51)

• On AI bots engaging customers:

  “It's very human like, and it does not identify itself as AI up front.” — Kurt Elster (13:14)

• On “vibe coding” and AI tool caution:

  “The risk with those vibe coded applications is security. Right. Like, I would not want to vibe code something that involves authentication.” — Kurt Elster (37:30)

• On overhyped AI wrappers:

  “So many of these tools are just… wrappers for ChatGPT… you're really not adding value beyond the interface and the wrapper.” — Kurt Elster (46:19)

Episode Flow & Structure

• [00:00–01:31] Host intro, Seller Summit promo (skipped in this summary)
• [01:39–03:09] Guest introduction: Kurt Elster
• [03:09–05:39] Tariffs and merchant responses
• [05:39–11:04] Shopify’s recent AI feature rollouts
• [11:12–16:52] Live chat bots and Steve's AI recommendations
• [19:19–23:16] Shopify’s data integrations and “AI on the front lines”
• [24:04–29:18] SEO’s new importance and AI content automation
• [29:18–30:44] AI for search and on-site product recommendation
• [30:44–34:38] Category strategy and menu best practices
• [34:38–39:49] Shopify app stack: what’s essential, what’s not
• [39:05–43:10] AOV-boosting tactics and custom app development
• [43:18–45:44] Analytics platforms and their limitations
• [46:04–47:59] Overhyped AI tools and practical warnings
• [48:07–48:38] Where to find Kurt

Final Takeaway

This episode is a dense, actionable discussion among seasoned e-commerce operators. It offers a realistic, sometimes skeptical perspective on the value of AI tools for Shopify merchants, practical tips for leveraging data and AI to drive sales, and a handful of actionable plays for SEO, AOV, and site experience. The recurring advice: embrace new technologies, but know both your limits and the true capabilities of each tool—don’t chase hype without a careful eye on ROI and risk.