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Shopline's approach to AI in e-commerce

Ines Lin, DIGITIMES, Taipei 0

Credit: Shopline

Beyond foreign software firms and local IC design companies, the fields of e-commerce and marketing have also become significant magnets for software talent.

Shopline, a leading smart store platform, notes that since 2020, it has focused on developing AI and machine learning technologies, primarily to enhance product recommendations and conversational commerce applications, aimed at solving merchants' problems. However, implementing ChatGPT still necessitates data preprocessing.

Founded in Hong Kong in 2013, Shopline's headquarters are now in Singapore. By 2023, it had expanded to the UK, Australia, the US, and Japan, becoming a multinational entity spanning 14 cities. It offers online and offline solutions including store consultancy, e-commerce, social e-commerce, and POS systems.

Globally, Shopline employs around 2,000 people, with over 500 based in Taiwan, making up roughly a quarter of its workforce. The product development team in Taiwan, consisting of approximately 170 individuals, is a key R&D hub for the company. While Hong Kong emphasizes financial and business talent, software professionals are more readily available in Taiwan and Singapore. Products developed in Taiwan must also cater to the needs of other markets.

Since 2020, Shopline has utilized machine learning to improve product recommendations and conversion rates, alongside natural language processing to develop conversational commerce, thereby reducing customer service burdens.

Hsiung Yushan reveals that Shopline's member numbers range from tens of thousands to single digits, with some major brands preferring not to disclose their partnerships. The team has also engaged with night market vendors interested in e-commerce development. However, some merchants, after evaluation, opt only for in-store checkout systems, as not every store is suited for e-commerce.

Data from the Ministry of Economic Affairs shows that e-commerce accounts for about 11% of Taiwan's overall retail industry, with growth appearing stagnant in recent years. Shopline attributes the difficulty in significantly growing Taiwan's e-commerce to the simultaneous growth of online and offline businesses for many brands.

Brands with more physical stores may see faster growth in physical retail revenue. Rapidly growing sectors in recent years include pet food and supplies, reflecting the trend of fewer children and increasing pet registrations.

Following the advent of ChatGPT, Shopline integrated OpenAI's technology into its products via Microsoft's services. This includes the SmartPush email system, which enhances content generation and segmentation for members, non-members, and new customers, with additional charges for volumes exceeding certain thresholds.

Shopline has observed that finding suitable marketing talent is a challenge for merchants, making marketing technology and automation tools essential. Tools like SmartPush have seen high acceptance rates.

However, the Shopline team remains measured amidst the general enthusiasm for generative AI. "AI is just another tool for us. We can solve merchants' problems with or without AI," the company states. AI tools are used to enhance efficiency and accuracy rather than being the primary focus.

Nonetheless, Shopline acknowledges that in 2024, employing AI to enhance technology can indeed strengthen its competitive advantage. The market increasingly recognizes companies willing to adopt new technologies.

In addition to utilizing external AI models, Shopline also develops its own AI models. Even integrating ChatGPT requires data preprocessing, indicating that the team's IT and AI capabilities must be robust for successful implementation.

According to a report by iKala Interactive Media, brands with fewer than 50,000 members often choose Shopline for building online store platforms, followed by self-built platforms. Brands with over 50,000 members usually prefer creating their own platforms but also use Shopline, 91APP, and Cyberbiz.

Shopline's member numbers range from tens of thousands to single digits, with some major brands preferring not to disclose their partnerships. The team has also engaged with night market vendors interested in e-commerce development. However, some merchants, after evaluation, opt only for in-store checkout systems, as not every store is suited for e-commerce.

Data from the Ministry of Economic Affairs shows that e-commerce accounts for about 11% of Taiwan's overall retail industry, with growth appearing stagnant in recent years. Shopline attributes the difficulty in significantly growing Taiwan's e-commerce to the simultaneous growth of online and offline businesses for many brands.

Brands with more physical stores may see faster growth in physical retail revenue. Rapidly growing sectors in recent years include pet food and supplies, reflecting the trend of fewer children and increasing pet registrations.