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eBay has been increasing its artificial intelligence (AI) initiatives recently, as it looks to use the holiday season as a test to see if AI can increase sales, according to CNBC.
With more than 1 billion product listings, the company faces significant challenges in ensuring shoppers can easily find the products they're looking for. As such, the online marketplace has been ramping up its AI efforts to streamline the product search process for consumers.
- It updated its homepage to add personalized recommendations for each user.The webpage update is part of a larger site overhaul, called its “structured data” initiative, which involves standardizing data related to product display. This has allowed eBay to run AI algorithms more easily, helping it improve product search and recommendations.
- Last month, it debuted Group Listings, which organizes search results by product item, rather than displaying each seller's product listing. For example, if a shopper searches for Lego Xbox 360 games, the results will be grouped by game, with a hyperlink displaying the number of sellers offering each game. Once clicked, the hyperlink will show consumers all the listings for a particular game.
- eBay rolled out two visual search features — Find It On eBay and Image Search — for its mobile app last month. The Find It On eBay feature allows customers to search for products on eBay by sharing images from social media platforms. Image Search enables customers to take pictures, or use existing ones on their phones, to find similar listings on eBay.
Improving its search functionality is critical for eBay to remain competitive during the holiday season. Saving time and having a less stressful shopping experience are some of the top reasons consumers shop online, according to a study from IFTTT. If shoppers find it difficult to locate the right gifts, they likely won’t hesitate in resorting to another marketplace for their holiday shopping. eBay’s recent efforts to simplify its product search may make it more appealing to holiday shoppers, possibly helping it better contend against rivals Walmart and Amazon.
BI Intelligence, Business Insider's premium research service, has written a detailed report on AI in e-commerce that:
- Provides an overview of the numerous applications of AI in retail, using case studies of how retailers are currently gaining an advantage using this technology. These applications include personalizing online interfaces, tailoring product recommendations, increasing the relevance of shoppers search results, and providing immediate and useful customer service.
- Examines the various challenges that retailers may face when looking to implementing AI, which typically stems from data storage systems being outdated and inflexible, as well as organizational barriers that prevent personalization strategies from being executed effectively.
- Gives two different strategies that retailers can use to successfully implement AI, and discusses the advantages and disadvantages of each strategy.
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