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EBAY Integrates AI Into Its Marketplace With a New Tool
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eBay (EBAY - Free Report) launched a new AI tool for marketplace sellers.
The new AI tool, which is currently available on the eBay app for iOS, can create a product listing by automatically generating a title, description and information like product release date, category, subcategory, list price and shipping cost from a single photo.
Moreover, the photo-to-listing AI tool addresses the "cold start" issue experienced by first-time sellers by removing the need to enter extensive information for competitive listings.
We believe that the latest move is a head start for the company to infuse generative AI into its marketplace.
The latest release can be seen as a strategic move to compete with its peers like Amazon (AMZN - Free Report) and Shopify (SHOP - Free Report) , who are also making increasing efforts to incorporate generative AI within their marketplace.
Notably, Amazon’s introduction of an AI tool for sellers, which can write product listings from a series of keywords, remains noteworthy. The tool marks the first integration of large-language models into the company’s e-commerce business.
Meanwhile, Shopify Magic, Shopify’s newly launched AI tool comes with the added feature of AI-generated product descriptions with a built-in wordsmith in the merchant’s admin.
eBay’s Other AI Efforts
Apart from the latest move, eBay recently collaborated with Microsoft (MSFT - Free Report) to integrate Azure cloud-computing software and open AI application programming interface into its core listing flow.
Further, EBAY also announced its plans to roll out a plug-in that will allow sellers to automatically generate item descriptions from web content, allowing sellers to pre-populate categories and item specifics from a single photo, reducing listing creation time.
We believe these advancements will likely strengthen eBay’s footprint in the booming generative AI market.
A Fortune Business Insights report projects that the global generative AI market size is likely to hit $43.87 billion in 2023 and reach $667.96 billion by 2030, witnessing a CAGR of 47.5% during the forecast period of 2023-2030.
We believe the solid prospects of eBay in this promising market will aid its overall financial performance in the near term. This, in turn, is likely to instill investor optimism in the stock.
For third-quarter 2023, eBay expects revenues between $2.46 billion and $2.52 billion. The Zacks Consensus Estimate for the same is pegged at $2.5 billion, suggesting year-over-year growth of 5.12%
However, geopolitical events, inflationary pressure, foreign exchange rate volatility and lower consumer confidence are major concerns.
eBay’s shares have gained 4% on a year-to-date basis, underperforming the industry’s rise of 41.7%.
Image: Bigstock
EBAY Integrates AI Into Its Marketplace With a New Tool
eBay (EBAY - Free Report) launched a new AI tool for marketplace sellers.
The new AI tool, which is currently available on the eBay app for iOS, can create a product listing by automatically generating a title, description and information like product release date, category, subcategory, list price and shipping cost from a single photo.
Moreover, the photo-to-listing AI tool addresses the "cold start" issue experienced by first-time sellers by removing the need to enter extensive information for competitive listings.
We believe that the latest move is a head start for the company to infuse generative AI into its marketplace.
eBay Inc. Price and Consensus
eBay Inc. price-consensus-chart | eBay Inc. Quote
Stiff Competition
The latest release can be seen as a strategic move to compete with its peers like Amazon (AMZN - Free Report) and Shopify (SHOP - Free Report) , who are also making increasing efforts to incorporate generative AI within their marketplace.
Notably, Amazon’s introduction of an AI tool for sellers, which can write product listings from a series of keywords, remains noteworthy. The tool marks the first integration of large-language models into the company’s e-commerce business.
Meanwhile, Shopify Magic, Shopify’s newly launched AI tool comes with the added feature of AI-generated product descriptions with a built-in wordsmith in the merchant’s admin.
eBay’s Other AI Efforts
Apart from the latest move, eBay recently collaborated with Microsoft (MSFT - Free Report) to integrate Azure cloud-computing software and open AI application programming interface into its core listing flow.
Further, EBAY also announced its plans to roll out a plug-in that will allow sellers to automatically generate item descriptions from web content, allowing sellers to pre-populate categories and item specifics from a single photo, reducing listing creation time.
We believe these advancements will likely strengthen eBay’s footprint in the booming generative AI market.
A Fortune Business Insights report projects that the global generative AI market size is likely to hit $43.87 billion in 2023 and reach $667.96 billion by 2030, witnessing a CAGR of 47.5% during the forecast period of 2023-2030.
We believe the solid prospects of eBay in this promising market will aid its overall financial performance in the near term. This, in turn, is likely to instill investor optimism in the stock.
For third-quarter 2023, eBay expects revenues between $2.46 billion and $2.52 billion. The Zacks Consensus Estimate for the same is pegged at $2.5 billion, suggesting year-over-year growth of 5.12%
However, geopolitical events, inflationary pressure, foreign exchange rate volatility and lower consumer confidence are major concerns.
eBay’s shares have gained 4% on a year-to-date basis, underperforming the industry’s rise of 41.7%.
Currently, eBay has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.