While frugality has generally required consumers to be open to some degree of randomness and discovery, Thread up Using artificial intelligence search capabilities to improve the relevance and accuracy of second-hand shopping.
Digital Consignment and Thrift Stores to discuss fourth quarter and full year 2023 on a call with analysts on Monday (March 4). Earnings Results, CEO James Reinhart Discussed how the company’s new AI-powered search tools are transforming the platform by improving its ability to deliver targeted results.
“Our broad selection of inventory is one of our greatest assets, but it also creates challenges for buyers, as they shop for four million unique second-hand items at any given time,” said Reinhart. “This new search functionality significantly enhances the second-hand shopping experience by combining visual language with personal style in our marketplace.”
He noted during the call that the tool enables shoppers to either select items for specific items, such as clothing type, occasion wear (he gave the example of a “Sunday Brunch Dress”) or a specific accent. For products similar to or ethics (Reinhart’s example is “Academy Award chic”).
Shoppers – especially younger ones – are in demand for AI-powered convenience in retail. PYMNTS INTELLIGENCE REPORTAI-enabled payments increase customer options.” found that 44% of consumers are at least somewhat interested in integrating AI technologies into shopping experiences. In addition, this share grows to include more than half of younger generations, with 69% Generation Z consumers and 54% of millennials and millennials report that they are interested.
In addition to these search features, the company is using generative AI to enhance its ability for customers to buy multiple items at once. Reinhart notes that the technology will “soon give users the ability to create associations of their choice using just a single text description,” matching multiple objects.
“The list of organizations that can be created with this tool is endless and limited only by our buyers’ imaginations,” Reinhart said on the call. “We’ll be guiding in-style inspiration touchpoints throughout the product experience over the next year.”
The company’s revenue grew at a time when many consumers are turning to second-hand shopping to cope with ongoing financial challenges. ThredUp reported a 12% year-over-year increase in revenue, with net loss narrowing to 32% of revenue from 22% a year ago.
PYMNTS INTELLIGENCE STUDY”Consumer Inflation Report: Consumers shop second-hand stores like other retail.“Driving from a December survey of more than 2,300 U.S. consumers, it found that 43% of consumers will purchase a second-hand product in 2023, with higher-income shoppers disproportionately likely to make such purchases. Also, 19% of consumers said they increased their second-hand purchases during the year.
As ThredUp continues to innovate and evolve its platform with AI-powered search tools and creative AI capabilities, it aims to meet the growing demand for convenience and personalization in retail.
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