Online marketplaces mainly used AI for back-office automation, but this year, AI has stepped up from backstage to centre stage.
From virtual try-ons and sales chatbots to 3D visualisation and summary reviews, the likes of Amazon, Zalando and Poshmark are all rolling out new AI-generated features that will impact how you sell on online marketplaces.
Here’s five key developments to know.
Data underpins personalisation. Just as online ‘cookies’ help brands personalise advertising, online marketplaces are using AI to provide personalised product recommendations based on customers’ buying history, preferences, previous searches and behaviour onsite.
For example, Poshmark, a marketplace for second hand clothing, uses customers' activity on the platform to generate live personalised recommendations. If you’re looking for an orange handbag, its algorithm can suggest other relevant products; both enhancing customer experience and the likelihood of making a sale. Poshmark’s most recent innovation is no surprise. Last year, the marketplace was bought by South Korean internet company Naver, whose CEO stated: “Naver’s leading technology in search, AI recommendation and e-commerce tools will help power the next phase of Poshmark’s global growth.”
If a product has 500+ reviews, it can be hard to gauge if there’s a common problem or fault, especially given reviews tend to range from the monosyllabic to the monologue. But not anymore.
Amazon is now distilling all reviews for a product into a few sentences with an AI-generated summary. Rolled out this month, Amazon’s summary reviews pluck the most commonly-cited criticisms and benefits from thousands of customer reviews to create a one paragraph review for each product. For example, it might say customers think this Bluetooth speaker is great value and easy to use, but it has poor Bluetooth range and is quite bulky compared to other models.
AI chatbots are expected to become the personal assistants of marketplaces. Popping up when you arrive on site, customers will be able to ask the Chatbot to provide recommendations, find alternative products and even questions related to shipping.
For instance, Zalando’s chatbot will enable clothing customers to search for intangible items (i.e. men’s shoes for a winter wedding). This means sellers will need to rethink their listings strategy as it may no longer be enough to categorise your products as ‘black brogues’ if searchers are looking for ‘classy Christmas chic’. On the plus side, the information captured by the chatbot will help sellers learn what product descriptions are most commonly used.
Online fashion marketplaces were some of the first to experiment with virtual reality (VR) and augmented reality (AR), enabling customers to use ‘virtual fitting rooms’ to try on clothes. No matter your location, body type, age or size, you were able to use a hyper realistic model to try on clothes on marketplaces like Asos and Farfetch.
But it’s no longer just clothes getting the virtual treatment. Amazon has joined forces with Hexa, a 3D visualisation start-up, to create virtual 360º 3D images for products listed on its site. Promising to “transform your 2D Amazon storefront into a world of 3D experiences,” Hexa will create a digital twin of the product in all its lifelike glory whether it’s a lawn mower, hair dryer or surfboard. To get started, Amazon sellers can simply upload their Amazon Standard Identification Number (ASIN) into Hexa.
Ever seen a product and wanted to know where it came from? Ever dreamt of owning a piece of high fashion, but didn’t know how to find more affordable alternatives? Now, you can simply take a ‘snap’ and AI-generated algorithms will then ‘search’ for either the real thing or similar items.
For example, Poshmark’s Posh Lens will enable customers to take or upload a photo from their phone and then browse search results of similar listings without the customer needing to know the name of the brand, product or style.
From pricing optimisation and inventory management to damage detection and fraud prevention, there’s already a wide range of uses for AI on online marketplaces; this list is expected to grow exponentially over the next few years.
For marketplace sellers, AI innovations will make it easier to sell your products online as long as you adapt to the new reality. For advice on how to take advantage of AI marketplace trends, get in touch.