AI Implemented by Online Marketplaces for Tailored User Experience

Online marketplaces like eBay, Etsy, and ThredUp are revolutionizing the shopping experience by incorporating artificial intelligence (AI) technology. According to the Wall Street Journal, these platforms are using AI to provide a personalized shopping experience for both buyers and sellers.

Etsy, for example, has introduced a feature called Gift Mode, which utilizes AI to help shoppers find the perfect gift. By inputting a few details about the recipient, the AI-powered feature suggests relevant products from Etsy’s vast inventory, saving time for shoppers and introducing them to new products they may not have discovered otherwise.

Similarly, eBay has launched a feature called “shop the look,” which curates outfits based on users’ shopping history. With over 2 billion live listings, eBay aims to simplify the browsing experience by leveraging AI technology.

ThredUp, a secondhand clothing seller, has also embraced AI to enhance its search capabilities. With 100,000 items added daily, finding specific items can be challenging. ThredUp now uses AI to tag attributes and cluster them in a way that intuitively understands what the user is looking for, leading to an increase in searches on the platform.

While AI technology holds great promise for improving the online shopping experience, there are challenges to overcome, such as the time it takes for large language models to generate responses and the cost of implementing AI technology. However, in the near term, AI technology may benefit sellers by reducing friction and encouraging more listings and sales.

PYMNTS Intelligence has found that GenAI technology, driven by the rise of large language models, is considered the most impactful emerging technology by 77% of business leaders. Subscribe to the Retail Newsletter for more updates on AI in the retail industry.