AI tools help eBay stage a comeback

eBay is deepening its investment in AI as part of a multi-year effort to revive the platform after years of stagnant growth.

The company, which saw renewed momentum during the pandemic, has launched five new AI features this year, including AI-generated shipping estimates, an AI shopping agent and a partnership with OpenAI.

Chief executive Jamie Iannone argues that eBay’s long history gives it an advantage in the AI era, citing decades of product listings, buyer behaviour data and more than two billion active listings. That data underpins tools such as the ‘magical listing’ feature, which automatically produces item descriptions from photos, and an AI assistant that answers buyer questions based on a listing’s details.

These tools are also aimed at unlocking supply: eBay says the average US household holds thousands of dollars’ worth of unused goods.

Analysts note that helping casual sellers overcome the friction of listing and photographing items could lift the company’s gross merchandise volume, which grew 10 percent in the most recent quarter.

AI is also reshaping the buyer experience. Around 70 percent of eBay transactions come from enthusiasts who already know how to navigate the platform. The new ‘eBay.ai’ tool is designed to help less experienced users by recommending products based on natural-language descriptions.

Despite this push, the platform still faces intense competition from Amazon, Google, Shein and emerging AI-shopping agents. Iannone has hinted that eBay may integrate with external systems such as OpenAI’s instant-checkout tools to broaden discovery beyond the platform.

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