Shopline’s Approach to AI in E-Commerce

In addition to overseas software companies and local chip design firms, the e-commerce and marketing sectors have also become significant magnets for software talent.

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

Founded in Hong Kong in 2013, Shopline is now headquartered in Singapore. By 2023, the company had expanded to the UK, Australia, the US and Japan, becoming an international entity spanning 14 cities. It offers online and offline solutions, including store consulting, e-commerce, social e-commerce and POS systems.

Shopline employs about 2,000 people globally, with more than 500 based in Taiwan, about a quarter of its workforce. The product development team in Taiwan, about 170 strong, is a key R&D center 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 meet the needs of other markets.

Since 2020, Shopline has been using machine learning to improve product recommendations and conversion rates, as well as natural language processing to develop conversational commerce, which reduces the burden on customer service.

Hsiung Yushan reveals that Shopline membership ranges from tens of thousands to single digits, with some major brands preferring not to disclose their partnerships. The team has also worked with night market vendors interested in developing e-commerce. However, some vendors, after evaluation, opt only for in-store checkout systems, as not every store is suitable for e-commerce.

Data from the Ministry of Economic Affairs shows that e-commerce accounts for about 11% of all Taiwanese retail, and growth has seemed stagnant in recent years. Shopline attributes the difficulty in growing Taiwanese e-commerce significantly to the simultaneous growth of online and offline businesses of many brands.

Brands with more brick-and-mortar stores could see faster growth in retail revenue. Fast-growing sectors in recent years include pet food and supplies, reflecting trends of fewer children and rising pet registrations.

After ChatGPT emerged, Shopline integrated OpenAI technology into its products via Microsoft services. This includes the SmartPush email system, which streamlines content generation and segmentation for members, non-members, and new customers, with additional fees for volumes above certain thresholds.

Shopline noted that finding the right marketing talent is a challenge for retailers, making marketing technology and automation tools essential. Tools like SmartPush have seen high adoption rates.

But the Shopline team remains measured in the face of the general enthusiasm for generative AI. “AI is just another tool for us. We can solve merchant problems with or without AI,” the company says. AI tools are used to improve efficiency and accuracy, not as the primary focus.

Nevertheless, Shopline acknowledges that in 2024, using AI to improve technology could actually strengthen its competitive advantage. The market increasingly values ​​companies that are willing to adopt new technologies.

In addition to using external AI models, Shopline also develops its own AI models. Even the ChatGPT integration requires data preprocessing, indicating that the team’s IT and AI capabilities must be solid for the implementation to be successful.

According to a report by iKala Interactive Media, brands with fewer than 50,000 members often choose Shopline to create e-commerce platforms, followed by self-built platforms. Brands with more than 50,000 members usually prefer to create their own platforms, but also use Shopline, 91APP, and Cyberbiz.

Shopline membership ranges from the tens of thousands to single digits, with some major brands preferring not to disclose their partnerships. The team has also worked with night market vendors interested in developing e-commerce. However, some vendors, after evaluation, opt for in-store checkout systems only, as not every store is suitable for e-commerce.

Data from the Ministry of Economic Affairs shows that e-commerce accounts for about 11% of all Taiwanese retail, and growth has seemed stagnant in recent years. Shopline attributes the difficulty in growing Taiwanese e-commerce significantly to the simultaneous growth of online and offline businesses of many brands.

Brands with more brick-and-mortar stores could see faster growth in retail revenue. Fast-growing sectors in recent years include pet food and supplies, reflecting trends of fewer children and rising pet registrations.