A week after e-commerce giant Amazon said it is giving its sellers new generative AI advertising tools this holiday season, Shopify has to prove to investors that its AI products will spark growth when it reports results.
Based on forecasts from London Stock Exchange Group (LSEG), Wall Street anticipates sales growth of 22.38 per cent to US $ 1.67 billion over the previous year.
At a conference in September, Shopify’s Chief Financial Officer Jeff Hoffmeister stated that the company’s AI technologies will be a “superpower” for sellers who require assistance in deciding on their product mix and regional expansion.
Shopify offers online retailers services and software. Additionally, it offers apps that let retailers sell straight on websites like Amazon and Walmart, who are also developing AI features for retailers.
After concluding its logistics division divestment in May, the business unveiled Shopify Magic in July, a package of AI-powered product descriptions, virtual assistants, blog posting, and email campaign tools for merchants. Shopify introduced the AI software Sidekick as part of their AI suite to assist sellers in making decisions about marketing, promotions, and inventory while reducing their reliance on third-party widgets.
Analysts predict that sales of Shopify’s merchant products—which include Shopify Magic—will rise 21 per cent to US $ 1.2 billion in comparison to the previous year, marking the company’s first quarterly decline.
In comparison, as part of a significant drive to attract more merchants to its marketplace, Amazon’s third-party seller services expanded by 19.8 per cent during the third quarter.
Shopify Magic is part of the company’s long-term strategy to gain more merchants on its platform that will pay higher prices for its services.
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