Shopify merchants seek AI boost for key sales decisions
Amazon said it is giving its sellers new generative artificial intelligence advertising tools this holiday season, Shopify has to prove to investors that its AI products will spark growth when it reports results on Thursday.
Wall Street is expecting it to show revenue growth of 22.38% to $1.67 billion compared to last year, according to estimates from LSEG.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Product ManagementVisitMITMIT Technology Leadership and InnovationVisitIndian School of BusinessISB Digital TransformationVisit Shopify Chief Financial Officer Jeff Hoffmeister said at a September conference that its AI tools are set to be a «superpower» for sellers who need help choosing their merchandise mix and geographic expansion.
Shopify provides software and services to online sellers. It also provides apps for merchants to sell directly on marketplaces like Amazon and Walmart, which are also building out AI additions for merchants.
In July, the company announced Shopify Magic, a suite of AI-powered product descriptions, virtual assistants, blog posting and email campaign tools for merchants after completing its divestiture from its logistics arm in May. As part of the AI suite, Shopify launched AI app Sidekick, which helps sellers decide on inventory, promotions and marketing, lessening their dependence on third-party widgets.
Analysts expect sales of Shopify's merchant products, which includes Shopify Magic, to increase 21% to $1.2 billion compared to last year, the first deceleration in four quarters.
For comparison, Amazon's third-party seller services grew 19.8% in the third-quarter as part of a major push to get more merchants on its
