ChatGPT, an artificial intelligence chatbot, has been used by third-party Amazon sellers to generate sales copy and improve product listings. E-commerce software providers, such as JungleScout, have also integrated the technology into their services. Investors are pouring money into the market despite the downturn, with a 22-person pre-revenue startup called Character.AI raising $150m at a $1bn valuation in a round led by Andreessen Horowitz. Microsoft and Google have also incorporated AI chatbots into their search engines. However, there have been concerns about the technology’s accuracy, given its tendency to make mistakes and “hallucinate”.
ChatGPT: The AI Chatbot Helping Amazon Sellers Boost Sales
Chad Rubin, an Amazon seller, was struggling to come up with a catchy title that would make shoppers want to click on his vacuum hose instead of countless others in Amazon’s vast marketplace. In search of assistance, Rubin turned to ChatGPT, the artificial intelligence chatbot that has gone viral since its launch late last year. He soon began experimenting with the tool for completing tasks such as generating copy on his product page. Rubin asked ChatGPT to “generate 5 insanely clever and catchy headlines” for an infographic promoting his vacuum cleaner hose. “Dirt destroying air flow,” he said, reading off one of ChatGPT’s responses. “I would have never in a million years thought of that for a vacuum hose.”
As ChatGPT rapidly finds its way into use by lawyers, clinicians, professors, and their students, it’s also showing its utility in the business world, notably for Amazon sellers seeking the tiniest competitive advantage as they try to bolster sales. Third-party merchants who have embraced ChatGPT say it can make the job of selling on Amazon’s marketplace easier and more lucrative.
ChatGPT’s utility in the business world is demonstrated by a stream of YouTube videos, articles, and LinkedIn posts touting the benefits of ChatGPT for Amazon sellers. E-commerce software providers such as JungleScout have also jumped on the trend by integrating ChatGPT into their services.
ChatGPT has taken the technology industry by storm since it was introduced to the public in November by OpenAI, a Microsoft-backed startup that’s reportedly held talks with investors to sell shares at a $29 billion valuation.
Millions of people are using the free chatbot to do things such as write fiction, generate computer code and edit resumes. Microsoft has incorporated the technology into its Bing search engine, while Google introduced rival chatbot Bard last month.
Investors are pouring into the market with massive checks even as the broader tech startup market continues to suffer from the 2022 downturn. Last week, a 22-person pre-revenue startup called Character.AI, which was founded by two former Google employees, raised $150 million at a $1 billion valuation in a round led by Andreessen Horowitz.
Hamza Amor, an Amazon seller and founder of e-commerce consulting firm Fussy Penguins, has posted TikTok videos showing how ChatGPT can help merchants discover their next hit product.
Amor started experimenting with ChatGPT in December, asking it questions such as “Tell me more about you” and “What is the meaning of life?” He then asked it to write small passages, such as a children’s story, and was impressed by the results.
ChatGPT helped him improve his products after he asked the chatbot to summarize what users like and dislike about an item based on a set of reviews. For an under-desk footrest, it suggested he use different packaging and more durable materials, or consider offering multiple sizes and the ability to adjust the height of the footrest.
The software also assisted with the writing of a few listings, a process that normally requires hours of writing and editing.
“It does it with the tone you suggest, and it does it in seconds,” Amor said. “That’s the part that was mind-blowing.”
ChatGPT’s handiwork has already delivered results for some users. Rubin said the conversion rate, or the percentage of clicks on an ad that result in sales, went up for several of his vacuum filters, coffee filters, and air filters after he used ChatGPT for help with listings. For one product, the conversion rate increased from an average of 26% to 46% over an eight-week period, he said.
Rubin sees the opportunity to further.