Yahoo Finance 
eBay is testing a Facebook Messenger chatbot
(BII)
This story was delivered to BI Intelligence "E-Commerce Briefing" subscribers. To learn more and subscribe, please click here.
eBay is testing a chatbot shopping assistant on Facebook Messenger, called ShopBot, reports Bloomberg.
The chatbot is powered by artificial intelligence (AI) that gathers information from questions it asks and users' Facebook profiles. ShopBot then uses those details to help customers find more relevant items. eBay is likely leveraging its recent acquisitions of AI companies in order to better categorize its massive inventory base and drive up conversion rates among its millions of global users.
eBay's Messenger chatbot can help boost the company's performance:
The audience widens significantly: Messenger currently boasts 1 billion global monthly active users (MAUs), which means eBay merchants have an opportunity to onboard a vast number of new customers.
It personalizes the customer shopping experience: eBay's roots as a peer-to-peer auction site likely lead to mostly one-off deals without a lot of loyalty to the marketplace. ShopBot can remember details about a shopper, like clothing sizes, which helps curate a personalized shopping experience. Furthermore, it helps the company more closely filter out search results for each customer to boost conversion rates and customer loyalty.
eBay is using its recent tech acquisitions to boost its search functionality across platforms. After a disappointing earnings report in the first quarter, eBay announced its intentions to completely revamp its marketplace with new user experiences and product categories to draw in shoppers.
Its three newly acquired companies — SalesPredict, ExpertMaker, and Corrigon — are likely playing a large role in the company's approach to this revamp. Image recognition technologies, coupled with machine learning, can offer insight into what consumers are drawn to first, what they search for, and what they ultimately end up buying based on those searches. We expect to see eBay use that data to simplify the purchase journey and return search results that are more likely to result in a sale.
The e-commerce marketplace is looking to AI and omnichannel to reinvigorate its business. eBay sold approximately $20.8 billion worth of merchandise during Q2 2016 on an as-reported basis, reflecting 4% year-over-year (YoY) growth. However, during 2015, the company saw a 2% YoY decline during each of the first three quarters and flat growth in GMV during Q4.
Furthermore, the company's active buyer growth rate has been on a steady decline since Q2 2014. Incorporating AI technology, coupled with ShopBot, more closely levels the playing field between eBay and competitors. For example, both Amazon and Walmart also use AI in their search functionality. eBay's decision to use AI technology can help it more efficiently manage its massive inventory base and convert one-time buyers into loyal shoppers, as its competitors do.
Advancements in artificial intelligence, coupled with the proliferation of messaging apps, are fueling the development of chatbots — software programs that use messaging as the interface through which to carry out any number of tasks, from scheduling a meeting, to reporting weather, to helping users buy a pair of shoes.
Foreseeing immense potential, businesses are starting to invest heavily in the burgeoning bot economy. A number of brands and publishers have already deployed bots on messaging and collaboration channels, including HP, 1-800-Flowers, and CNN. While the bot revolution is still in the early phase, many believe 2016 will be the year these conversational interactions take off.
Laurie Beaver, research associate for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on chatbots that explores the growing and disruptive bot landscape by investigating what bots are, how businesses are leveraging them, and where they will have the biggest impact.
The report outlines the burgeoning bot ecosystem by segment, looks at companies that offer bot-enabling technology, distribution channels, and some of the key third-party bots already on offer. The report also forecasts the potential annual savings that businesses could realize if chatbots replace some of their customer service and sales reps. Finally, it compares the potential of chatbot monetization on a platform like Facebook Messenger against the iOS App Store and Google Play store.
Here are some of the key takeaways:
AI has reached a stage in which chatbots can have increasingly engaging and human conversations, allowing businesses to leverage the inexpensive and wide-reaching technology to engage with more consumers.
Chatbots are particularly well suited for mobile — perhaps more so than apps. Messaging is at the heart of the mobile experience, as the rapid adoption of chat apps demonstrates.
The chatbot ecosystem is already robust, encompassing many different third-party chat bots, native bots, distribution channels, and enabling technology companies.
Chatbots could be lucrative for messaging apps and the developers who build bots for these platforms, similar to how app stores have developed into moneymaking ecosystems.
In full, the report:
Breaks down the pros and cons of chatbots.
Explains the different ways businesses can access, utilize, and distribute content via chatbots.
Forecasts the potential impact chatbots could have for businesses.
Looks at the potential barriers that could limit the growth, adoption, and use of chatbots.
To get your copy of this invaluable guide, choose one of these options:
Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIP
Purchase the report and download it immediately from our research store. >> BUY THE REPORT
The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of chatbots.
More From Business Insider
