eBay Inc. (EBAY - Free Report) has launched a new destination eBay Collective for buyers looking for unique furniture designs, antiques and fine art.
The site is powered by “Shop the Look” Artificial Intelligence technology of Corrigon, a company that eBay recently acquired. “Shop the Look” is an image recognition technology that enables shoppers to flit across an image of a virtual interior space and then searches eBay’s inventory for similar items.
The new site is a good example of eBay’s unique capabilities that give it an edge over competitors such as Etsy (ETSY - Free Report) , Alibaba (BABA - Free Report) and Facebook (FB - Free Report) . Notably, Facebook has recently launched Facebook Marketplace to allow users to buy and sell items within their local communities.
Stepping Up its Game with Complementary Moves
To complement this site, eBay is maintaining a large inventory of unique products that the company claims can be found only in traditional brick-and-mortar stores. Moreover, eBay is offering flat rates on continental U.S. freight through its “white-glove” managed shipping service developed exclusively for items on eBay Collective.
The company has partnered with Architectural Digest and Archdigest.com to make the site more informative with content about shopping, decorating and other industry happenings. eBay has also made this platform available on smartphones.
EBAY INC Price
Taking Competition Head on
After the launch of Facebook Marketplace, we were expecting a counter strategy from eBay. The eBay Collective offering will definitely boost the company’s competitive edge in our view. Moreover, the company is banking on technological improvement to fend off competition.
eBay gathers product data from the sellers’ inventory list and then uses machine learning to process the data and improve user experience. Getting a product identifier is very helpful as the company associates that product information to identify similar products.
The company has acquired SalesPredict, ExpertMaker and most recently Corrigon to strengthen its effort toward artificial intelligence, machine learning and structured data.
Currently eBay carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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