Is ChatGPT the next big thing in e-commerce?

Kerem Gülen
Mar 28, 2023

ChatGPT, the artificial intelligence chatbot, has recently become an increasingly popular tool among Amazon sellers seeking a competitive edge to boost their sales, according to a recent CNBC report.

Chad Rubin, a third-party Amazon merchant, turned to ChatGPT to help him generate catchy headlines for an infographic promoting his vacuum cleaner hose.

Rubin was struggling to come up with a unique title that would make his hose stand out from the numerous other options available on Amazon's marketplace. ChatGPT came to the rescue and offered him several interesting options, such as "Dirt destroying air flow," which Rubin found both clever and catchy.

As ChatGPT continues to gain popularity among professionals such as lawyers, clinicians, and professors, it has also proven its usefulness in the business world. Amazon sellers who have embraced ChatGPT say it makes the job of selling on Amazon's marketplace much more straightforward and profitable. They have posted videos and articles on YouTube and LinkedIn extolling the benefits of using ChatGPT, and e-commerce software providers such as JungleScout have even integrated ChatGPT into their services.

Stephen Curial, the technology chief of JungleScout and a former Amazon software developer, believes that generative AI tools like ChatGPT will soon become common productivity aides, similar to calculators or spellcheck. Busy businesspeople can use these tools to minimize their daily grunt work and free up time for other tasks.

ChatGPT, launched by OpenAI, a Microsoft-backed startup, in November 2022, has taken the technology industry by storm. Millions of people are using the free chatbot for tasks such as writing fiction, generating computer code, and editing resumes. Microsoft has incorporated the technology into its Bing search engine, while Google introduced a rival chatbot called 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. Character.AI, a 22-person pre-revenue startup founded by two former Google employees, raised $150 million at a $1 billion valuation in a round led by Andreessen Horowitz last week.

Hamza Amor, an Amazon seller and founder of the e-commerce consulting firm Fussy Penguins, 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 can help sellers improve their products by summarizing what users like and dislike about an item based on a set of reviews. For example, for an under-desk footrest, it suggested using different packaging and more durable materials or offering multiple sizes and the ability to adjust the height of the footrest.

Rubin, who runs a pricing software company called Profasee, plans to incorporate ChatGPT into a new tool that will help sellers fine-tune their product listings quickly. Third-party sellers are often managing dozens, if not hundreds, of listings on Amazon at the same time and are competing with many new sellers every day. Rubin believes that providing other sellers with a streamlined way to use ChatGPT will be an opportunity to capitalize on the trend.

How effective can ChatGPT be?

While ChatGPT has gained significant attention and popularity in the business world, there are still valid reasons to be skeptical of its effectiveness. ChatGPT has been known to make errors and even generate false information, which AI experts refer to as "hallucination." Although ChatGPT can analyze vast amounts of data from the internet to improve its writing, it is not infallible, and its accuracy cannot be guaranteed.

Nonetheless, some Amazon sellers have seen positive results from using ChatGPT to enhance their product listings. For instance, Aidan Duffy, an Amazon seller and consultant, used ChatGPT to create bullet points for a sauna backrest and received helpful suggestions, such as creating an adjustable backrest for different user heights. However, Duffy still emphasizes the importance of human skills and expertise in creating effective product listings, and he remains cautious about relying solely on ChatGPT.

Despite these limitations, ChatGPT's assistance has already proven fruitful for some sellers. Chad Rubin, for example, reported an increase in the conversion rate of several of his products, such as vacuum filters and air filters, after using ChatGPT for his listings. One product even experienced a conversion rate boost from 26% to 46% in just eight weeks.

As a result of ChatGPT's potential to generate unique and engaging content, e-commerce software providers like JungleScout have integrated the technology into their services. JungleScout now incorporates ChatGPT to assist Amazon sellers in creating product titles, descriptions, and bullet points. They believe that ChatGPT's abilities will give their clients an edge in the competitive online marketplace.


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