Platform & products

Merchant of record

Definition

The legal entity responsible for a sale: it charges the customer, owes the tax, handles refunds and chargebacks, and answers for compliance. With Copilot Checkout, that entity is you — not Shopify, and not the assistant the shopper was talking to.

Defined in Copilot Checkout: The Configuration Guide.

Where Merchant of record comes up

The guides that put this term to work, rather than just defining it.

Related terms

Copilot Checkout: Shopify's AI-assisted checkout flow, released alongside Brand Agents in the Spring '26 edition — a Shopify product, not a Microsoft one, despite the name's overlap with unrelated Microsoft branding.
Shopify Knowledge Base: The Shopify-built admin app where you review generated FAQs, read buyer inquiries, and publish custom FAQs that AI shopping agents use when they answer policy, service, and brand questions.
Agentic commerce: Commerce transactions initiated, researched, or completed with an AI agent acting on the shopper's behalf, rather than a human clicking through a storefront unassisted.
Conversation flow: A named pattern of shopper intent — e.g. 'compare two products on a specific attribute' — paired with the reasoning logic and catalog data the Brand Agent needs to answer any phrasing of that intent well, not a single scripted exchange.
Launch drift: The gradual mismatch between an agent's configuration and reality that sets in when nobody actively tunes it after go-live — catalog changes go unreflected, new question patterns go unanswered, and the agent that was accurate on day one becomes gradually less accurate with each week of neglect.
Confidence threshold: The internal setting that decides whether a Brand Agent answers directly or escalates to a human. Set too low, it guesses too often; set too high, it escalates so much the feature stops saving anyone time.

All 112 terms

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