eBay is launching a suite of new AI tools to provide a more seamless and hyper-personalized UX for both buyers and sellers. But has the once-dominant e-commerce giant's embrace of the technology been too little, too late?

Glory days: In the late 1990s and early 2000s, eBay was one of the most powerful e-commerce platforms globally, revolutionizing online shopping by providing a marketplace where individuals and businesses could buy and sell goods in an auction-style format. While it still holds a notable presence in global e-commerce—particularly in used goods, collectibles, and niche product categories—it is no longer the force it once was. It remains a secondary player compared to Shopify, Amazon, and Walmart in the mainstream e-commerce space.

Turning up the AI dial: In 2024, the company upgraded its AI infrastructure to support large language models approximately 100 times larger than previous capabilities, enabling the handling of more complex tasks. This advancement has led to the development of features such as Magical Listing, Explore, and Shop the Look, which are set to be further refined throughout 2025. ​

• The Magical Listing tool leverages generative AI to streamline the product listing process for sellers. By analyzing images and titles, the tool automatically generates detailed product descriptions, recommends pricing, and suggests shipping costs.

• On the buyer's side, eBay introduced the Shop the Look feature, which allows customers to see how different items can be paired together, enhancing the discovery process. The site's Explore feature provides personalized recommendations based on a customer's size, style, and other preferences.

Howdy, partner: Partnerships have also played a crucial role in eBay's AI strategy. In January 2025, eBay collaborated with OpenAI to integrate its virtual assistant, Operator, into the platform. This integration enables users to receive personalized product suggestions based on natural language prompts, such as finding specific items at great prices or unique gifts for special occasions.

Falling behind: While eBay is trying to regain relevance with AI and strategic partnerships, over recent years, it has faced challenges in maintaining its market dominance amid intensifying competition and evolving consumer preferences. Despite reporting a 1.69% revenue increase in 2024 to $10.283 billion , the company's market share in the U.S. e-commerce sector stands at approximately 3.5%, positioning it fourth behind leaders like Amazon (37.8%) and Walmart (6.3%) .