Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Tue Mar 5 2024 15:39:52

eBay Has AI Respond to Customers to Save Time and Money

By: Ina Steiner

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eBay CEO Jamie Iannone boasted to Wall Street that he is using generative AI to save on the number of customer support agents that are needed to respond to issues between buyers and sellers.

Speaking at the Morgan Stanley Technology, Media & Telecom Conference on Monday, Iannone said eBay is using generative AI (artificial intelligence), and it can fundamentally change how eBay works as a business. 

"eBay gives a lot of customer support between buyers and sellers. That customer agent sometimes had to read like a 12-paragraph email where somebody explained it. We would hire someone to read that. Now, we have AI read that email, write the initial response, fundamentally changing the pace of how we work, and the pace of innovation."

While Wall Street analysts and investors generally express approval when ecommerce companies lower costs (and raise fees), buyers and sellers tend not to be as enthusiastic about such moves.

The week before the Morgan Stanley presentation, eBay's CEO had talked more generally about how eBay was using AI during its 4th quarter-2023 earnings call on February 27th, revealing that eBay receives over a million self-service queries a week and stating, "in a customer service perspective, AI is incredibly helpful there." 

"In our customer support centers, we've been using AI to really change the level of engagement we have with customers and the productivity," he had said.

Generative AI is in its early stages, but Iannone said he believes with eBay's vast decades' worth of data, AI is already proving useful.

From a seller's perspective, have you noticed any difference in the customer service experience, for better or for worse?



Comments (40) | Leave Comment | Permalink

Readers Comments

Perminate Link for eBay Has AI Respond to Customers to Save Time and Money   eBay Has AI Respond to Customers to Save Time and Money

This user has validated their user name. by: Ina

Tue Mar 5 15:56:44 2024

BTW, eBay's CEO didn't say if the company discloses to customers that the responses are AI generated.  

Perminate Link for eBay Has AI Respond to Customers to Save Time and Money   eBay Has AI Respond to Customers to Save Time and Money

by: Alfacar This user has validated their user name.

Tue Mar 5 16:07:20 2024

My account was permanently suspended from buying and selling. I wonder if that was thanks to AI reading and writing?

Perminate Link for eBay Has AI Respond to Customers to Save Time and Money   eBay Has AI Respond to Customers to Save Time and Money

This user has validated their user name. by: COVID-19

Tue Mar 5 16:14:23 2024

AI is disgusting. Ptui! On the other hand, given that most of eBay's CS just read from scripts anyways and can't actually solve callers' problems, this won't make a difference.....

Oh well, as long as the stupid, LAZY humans keep tolerating this garbage, more and more shall be pushed on you.

Perminate Link for eBay Has AI Respond to Customers to Save Time and Money   eBay Has AI Respond to Customers to Save Time and Money

by: GetAGrip This user has validated their user name.

Tue Mar 5 17:12:43 2024

In the last seven years I can count on one finger the number of times I have called sleazebay for anything. I have four stores and solve the problems I have myself. Refund, block, leave negative positive in capital letters and move on. Calling sleazebay always has been a losing deal. Instead of paying over 1200.00 a month for stores I now just pay less than 300.00 the savings pays for a lot of refunds. I practice what I preach, if I can't afford to lose it I don't list it. Sleazebay can kiss my royal arse crack for all I care. I'm not playing their games.

Perminate Link for eBay Has AI Respond to Customers to Save Time and Money   eBay Has AI Respond to Customers to Save Time and Money

by: RL15 This user has validated their user name.

Tue Mar 5 17:54:31 2024

the walmart dope strikes again.....


waves his magic wand........poof......more useless employees / contractors gone....

magical innovations

Perminate Link for eBay Has AI Respond to Customers to Save Time and Money   eBay Has AI Respond to Customers to Save Time and Money

by: Snapped This user has validated their user name.

Wed Mar 6 00:51:53 2024

Customer service isn’t black and white.  It isn’t ones and zeros. Not some I/O switch controlled process.  A script is just a directory in the lobby.  Tier one to a competent troubleshooter, but not the whole book.

eBay is sending a clear message they don’t understand that, and that to them, their customers and their ‘needs’ are not worth the cost of human interaction, because, to them, their customers are nothing but an abstraction.  A constant in an algorithm.  A digit in a database.  Outsourceable.  Interchangeable.  As intangible as the decimal points in their spreadsheets and spins.  

Made more anonymous now, so they can feel even less compelled to care, while still appearing to.  

Perminate Link for eBay Has AI Respond to Customers to Save Time and Money   eBay Has AI Respond to Customers to Save Time and Money

This user has validated their user name. by: Rexford

Wed Mar 6 06:35:38 2024

"Jamie Iannone boasted to Wall Street that he is using generative AI to save on the number of customer support agents that are needed to respond to issues between buyers and sellers."

It's all about money. The fewer customer support agents the more money in Jamie's and the c-suite's pockets.  Can you imagine what selling on eBay would be like if the CEO of eBay cared as much about eBay sellers as he does Wall Street?

Get ready to beat your head against a wall when you need a problem solved.  As if we weren't already beating our heads against a wall.

Perminate Link for eBay Has AI Respond to Customers to Save Time and Money   eBay Has AI Respond to Customers to Save Time and Money

This user has validated their user name. by: toolguy

Wed Mar 6 08:55:08 2024

I found a company whose customer service is harder to get a hold of than eBay is

Frontier Communication    

Perminate Link for eBay Has AI Respond to Customers to Save Time and Money   eBay Has AI Respond to Customers to Save Time and Money

by: AddyUp This user has validated their user name.

Wed Mar 6 10:06:41 2024

I suspect that AI is also used to police their forums. Either that or I've run into a rep with a grudge.

I can't think of any other way to explain their appalling decisions from what eBay laughingly calls customer service.

Perminate Link for eBay Has AI Respond to Customers to Save Time and Money   eBay Has AI Respond to Customers to Save Time and Money

by: ebayout This user has validated their user name.

Wed Mar 6 11:27:36 2024

GIGO

Perminate Link for eBay Has AI Respond to Customers to Save Time and Money   eBay Has AI Respond to Customers to Save Time and Money

by: Stone Cutter This user has validated their user name.

Wed Mar 6 11:47:20 2024

*** It is now a way of life ***

Customer service has become too expensive for a company like eBay filled with low volume Sellers.

There are too many Sellers on sites like eBay and Etsy who don’t make enough in profits, per month, to pay for a phone call.

On the Etsy forum, I hear of Sellers who want to call Etsy about everything from why their sales dried up in January, to Sellers who complain about not being on the first page of Search. Those phone calls become expensive every time a customer service rep picks up that phone.

Ebay has over 18 million Sellers with only a small percentage of Sellers who are truly successful in making any real money for eBay. Ebay could easily become overloaded if even a very small percentage of Sellers were to make a phone call.

Incorporating AI could be better then no customer service, at all.
Next for AI will be your internet provider, your utility company, and your bank.

If you don’t see the true nature of AI then you are not paying attention. AI and robotics will soon become a normal way of life for businesses and consumers.

Perminate Link for eBay Has AI Respond to Customers to Save Time and Money   eBay Has AI Respond to Customers to Save Time and Money

by: Snapped This user has validated their user name.

Wed Mar 6 11:51:47 2024

“… found a company whose customer service is harder…”

, said the lemming to its mom.  “All the other one’s are doing it…”

Perminate Link for eBay Has AI Respond to Customers to Save Time and Money   eBay Has AI Respond to Customers to Save Time and Money

by: pace306 This user has validated their user name.

Wed Mar 6 18:08:01 2024

Please never put “intelligence” and eBay in the same sentence - single celled creatures will be upset!

eBay 1) used AI do it would be “cool “ and 2) cause it saves them money which they can use to buy back shares - making it appear that they are doing ok. (They aren’t)

Snapped (of course) is correct - most interactions are lot simple yes/no issues. They require real live human beings to make real time judgments.

Ebay overseas CS was/is relatively cheap. A few people, a few bucks an hour. Jaime spends more on his wand,cape and Magic lessons then all that, not to mention a random dinner with Mrs magician

eBay will AI itself into the grave if the grown ups don’t take charge soon.

Magic is for kids parties not business

Perminate Link for eBay Has AI Respond to Customers to Save Time and Money   eBay Has AI Respond to Customers to Save Time and Money

by: Stone Cutter This user has validated their user name.

Wed Mar 6 20:47:01 2024

@Pace306

“Ebay overseas CS was/is relatively cheap. A few people, a few bucks an hour. “

You are incorrect in your assessment. When companies look for overseas help, they hire overseas firms that have huge farms of customer service reps. And these firms are NOT cheap. Outside of hourly wages, these firms charge for training, computer equipment, general office space, general business expenses, and the associated taxes for doing business overseas.

The overseas employee may not make much per hour, but these contracting firms charge good money for an “already made” CS department.

Same holds true here in the U.S. If any business does not want to take on the task of individually hiring employees while paying for lease space, more companies are turning to CS contracting firms for help.  

Perminate Link for eBay Has AI Respond to Customers to Save Time and Money   eBay Has AI Respond to Customers to Save Time and Money

by: ebayout This user has validated their user name.

Wed Mar 6 21:20:10 2024

I'm sure AI is great at if/then scenarios, which is a huge percent of CS.

What does it draw on to make unique value judgments...a digital coin flip?

Perminate Link for eBay Has AI Respond to Customers to Save Time and Money   eBay Has AI Respond to Customers to Save Time and Money

by: lessthanthreerecords This user has validated their user name.

Wed Mar 6 23:57:24 2024

I have a different name for AI.  I call it AS, which stands for artificial stupidity.  I have never interacted with a machine and had a positive experience.  Of course, some are worse than others, but never positive.  With that said, eBay's human support has been consistently spiraling downward for the last 15 years.  In the last 4 years, it has gotten so bad that I've found any statement made is far more likely to be wrong than right.  I do not imagine "AS" service will be any better, but in eBay's case, it would be tough to get much worse!

Perminate Link for eBay Has AI Respond to Customers to Save Time and Money   eBay Has AI Respond to Customers to Save Time and Money

by: None Such This user has validated their user name.

Thu Mar 7 00:37:12 2024

As already noted, may not make any difference since the existing customer service reps had no authority to think independently to resolve a problem.  They just read a script.  A computer can do that just as well.  Now, if only eBay cared about actually solving seller problems.  

@ Stone Cutter:  I hope I misread your comment and you were not in fact disparaging small sellers.  Every seller on eBay deserves support.  Obviously large sellers should get preference, that makes sense given the greater revenue they may bring in.  But everyone deserves a fair shake.  Small or large.  

Perminate Link for eBay Has AI Respond to Customers to Save Time and Money   eBay Has AI Respond to Customers to Save Time and Money

by: Jon M This user has validated their user name.

Thu Mar 7 00:51:41 2024

eBay can say they're using AI, but its little more than the usual call tree which pushes callers off to a knowledge base, where callers eventually give up. eBay labels this successful CS experiences.

Perminate Link for eBay Has AI Respond to Customers to Save Time and Money   eBay Has AI Respond to Customers to Save Time and Money

This user has validated their user name. by: cfrphoto

Thu Mar 7 01:00:00 2024

Automated or AI responses to intermediate or advanced users inevitably require agent responses.

Perminate Link for eBay Has AI Respond to Customers to Save Time and Money   eBay Has AI Respond to Customers to Save Time and Money

by: fof9l This user has validated their user name.

Thu Mar 7 01:08:37 2024

I've noticed the same thing in the last few weeks, and it's not intelligence, but stupidity.  I've lost count of the number of times when, in answer to a simple question, the response from the auto chatbot has been (something like)  ''I'm sorry, I don't understand the question. Please rephrase it or put it another way.''

There are only so many ways one can put ''GET ME AN AGENT'', but sometimes even that seems to stump the bot. Sometimes I like to respond with something that is well outside its AI programming - last week, in a fit of frustration, I typed ''It was a simple request. Are you stupid?''  Of course, I got the same standard reply.

eBay has gotten too big for its boots (or should that be, ''its bots''??)

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