Ebay Taps AI to Drive Auto Sales, Social Commerce

As eCommerce merchants explore ways for artificial intelligence (AI) to drive conversion and efficiency, eBay is looking to the technology to boost high-ticket auto parts sales and to grow its reach in social commerce.

The marketplace shared in its fourth quarter and full year 2023 results, reported Tuesday (Feb. 27), that its global rollout of eBay Motors’ predictive maintenance AI-powered feature in the quarter is helping to drive relevance for auto customers.

“We are finding more ways to leverage [our] valuable data to drive utility for our customers. For example, last quarter we introduced predictive maintenance that offers AI driven auto part recommendations based on vehicles’ mileage,” eBay president and CEO Jamie Iannone told analysts on a call. “Features like this help eBay stay top of mind for customers looking for auto parts at a great value.”

Additionally, the company shared in its earnings report that its generative AI caption generator for sellers, launched in December, is meant to make effective posting easier for them, and in turn to drive engagement from social media users.

Indeed, many consumers discover products via social media.

The PYMNTS Intelligence report “Tracking the Digital Payments Takeover: Monetizing Social Media,” which drew from a study of nearly 3,000 U.S. consumers, found that 43% of consumers browse social media to find goods and services. These platforms are more of a discovery tool than a path to direct purchase, with only 14% of consumers ultimately purchasing those goods and services via social media.

Notably, however, these channels are not eBay’s main lever of customer acquisition, with most consumers arriving at the marketplace more deliberately.

“The vast, vast majority of our traffic is organic — people coming to the eBay app or typing in eBay.com,” Iannone told analysts.

Overall, the share of consumers shopping primarily via digital channels has taken a significant dip from its mid-quarantine peak. PYMNTS Intelligence’s study “2024 Global Digital Shopping Index: The Rise of the Click-and-Mortar Shopper and What It Means for Merchants,” commissioned by Visa Acceptance Solutions, found that 29% of consumers across the seven countries surveyed are remote shoppers, using online channels exclusively, down from 34% in 2020.

Yet as ongoing economic challenges put pressure on consumers’ budgets, eBay is seeing the benefits of consumers looking for lower-cost ways to buy the items they want.

“One of the unique values of eBay is that we offer great values on the marketplace,” Iannone said. “So, I think the reason that our refurbished business, for example, is so strong, our luxury business is so strong, is that even in challenging times people are looking for a value on the marketplace.”

Indeed, PYMNTS Intelligence’s study “Consumer Inflation Sentiment Report: Consumers Cut Back by Trading Down” found that 58% of consumers now buy from merchants with lower prices for at least one retail product.

As digital shopping habits evolve amid ongoing financial pressures, eBay remains a beacon for consumers seeking affordability for products that might otherwise set their budgets over the edge. By leveraging AI, the marketplace aims to further drive adoption.