In a nutshell (TL;DR)...
This document explores the shift toward "Agentic Commerce," where AI agents independently execute shopping tasks. This ecosystem is powered by three key open protocols: MCP for live data access, UCP for transaction management (carts, identity, and payments), and A2A for dynamic negotiations between software agents. These open standards are vital for a friction-free, competitive future in retail.
In a previous post I talked about the rise of Agentic Commerce and how it will transform the way we shop online. I asked you to imagine asking your Personal AI Assistant: "Find me a waterproof hiking jacket in olive green under $200, apply my store rewards, and ship it to my apartment by Friday."
Five years ago, that prompt would yield a list of web links. Today, the AI Agent doesn't just find the jacket, it checks real-time inventory, verifies your loyalty tier, negotiates dynamic discounts, and executes the purchase without you ever loading a checkout page.I’ve also delved into the magic sauce that makes this happen but let’s try and bring together the main components into one post and try to understand what is at play. It is an underlying stack of open protocols, a collection of open-source technical standards forming what experts are calling the "HTTP of Agentic Commerce".
If you want to understand how software will trade billions of dollars over the next decade, you need to understand the protocols making it happen: MCP, UCP, and A2A.
1. The Context Layer: Model Context Protocol (MCP)
Before an AI agent can buy anything, it needs access to real-time information. Language models are inherently isolated; they don't natively know if a store has 3 items left in stock or if a price dropped five minutes ago.
Enter Model Context Protocol (MCP), open-sourced by Anthropic.
MCP acts as a universal adapter between AI models and external data tools. Think of it as USB-C for AI: instead of developers writing custom API connectors for every single product database, store backend, or CRM, MCP provides a standardized format for agents to query live data.
What MCP Handles in E-Commerce:
Live Inventory Checks: Quoting real-time stock counts across multiple warehouse locations.
Spec Parsing: Extracting structured technical specifications (e.g., precise dimensions, fabric weight, voltage) from unstructured databases.
Contextual Inputs: Feeding user preferences, sizing profiles, and past purchase histories securely to the AI model.
2. The Commerce Layer: Universal Commerce Protocol (UCP)
While MCP provides data context, it isn't built to orchestrate end-to-end retail transactions. Querying an API for stock is easy; creating a multi-item cart, applying promotional codes, initiating identity verification, and managing payments requires a formal commerce standard.
To solve this, Google teamed up with retail and infrastructure giants—including Shopify, Etsy, Target, Walmart, Visa, and Stripe—to release the Universal Commerce Protocol (UCP).
+----------------------------------------------------+
| CONSUMER AI SURFACES |
| (Gemini, AI Search, Custom Assistants) |
+----------------------------------------------------+
|
v
+----------------------------------------------------+
| UNIVERSAL COMMERCE PROTOCOL (UCP) |
| Standard primitives for Cart, Identity & Checkout |
+----------------------------------------------------+
/ | \
v v v
+---------------+---------------+--------------+
| MERCHANT | LOYALTY & | PAYMENT |
| BACKEND | IDENTITY | PROVIDERS |
+---------------+---------------+--------------+
UCP defines an open-source communication specification for e-commerce operations. It doesn't replace existing merchant platforms like Shopify or WooCommerce; it gives AI agents a set of standard functional primitives to talk directly to them.
Core UCP Primitives:
Catalog & Discovery: Exposing structured, real-time product catalogs directly to AI crawlers.
Cart Management: Enabling agents to create, modify, and calculate sub-totals for multi-item carts programmatically.
Identity & Loyalty Linking: Recognizing that "John Doe" is a Gold Tier member at a store, applying member pricing automatically without forcing a manual login on a website.
Checkout & Orchestration: Tokenizing payments and completing transactions securely while keeping the merchant as the official Merchant of Record.
3. The Negotiation Layer: Agent-to-Agent Protocol (A2A)
The ultimate evolution of agentic commerce isn't just a buyer bot interacting with a static website backend—it's software negotiating with software.
Agent-to-Agent (A2A) protocols establish rules for buyer agents (representing consumers) and seller agents (representing brands) to interact dynamically.
How A2A Dynamics Work in Practice:
Dynamic Bundling: A buyer agent requests a camera, lens, and tripod. The brand's seller agent calculates real-time margins and responds: "If you buy all three together, I can offer an instant $45 bundle discount."
Inventory Clearing: A merchant's AI agent notices excess seasonal inventory and dynamically grants targeted discounts to consumer agents searching for deals in that specific category.
Automated Terms Negotiation: Negotiating bulk order delivery timelines or return window extensions for enterprise purchases.
The Big Shift: Why Open Protocols Win
Why does this open architectural stack matter so much? Because walled gardens create friction, and friction kills conversion.
If every AI assistant required a proprietary integration to buy from every merchant, only massive platforms (like Amazon) would survive. Open standards like UCP, MCP, and A2A democratize the landscape. They allow a boutique clothing store running on a standard e-commerce platform to sell to a consumer using ChatGPT, Gemini, or a standalone personal AI assistant seamlessly.
The web was built on open transport protocols like HTTP and HTML. The era of agentic commerce is being built on data, transaction, and negotiation protocols. Brands that adopt these standards early won't just keep up, they will be the first ones discovered when software starts doing the shopping.




