HOW TODAY’S MARKETPLACES ARE BEING TAKEN OVER BY AI

Daley Hub’s Nils Kernchen, the former platform developer for the original DIY and garden marketplace, ManoMano, and freelance associate of specialist marketplace agency, ChannelMojo outlines the future of marketplace retail in the AI era – and how suppliers need to adapt.   And quickly.

When online retail took over large swathes of consumer purchasing at the expense of traditional bricks and mortar, consumers became used to ‘searching’ for the items that might meet their needs.  Today, consumers are increasingly ‘asking’ not searching.  And that simple change may completely transform ecommerce.  I’ve worked in marketplaces for almost ten years. I’ve seen the rise of Amazon, the growth of specialist marketplaces, and the explosion of online retail across Europe.  But even though the impact of all of that has been seismic, it is just a small shift when compared to the changes in consumer behavior resulting from AI.  This is not just another small ecommerce trend – it is the next marketplace revolution.  Let me explain. 

Traditionally, online shopping worked like this:

Consumers opened Google or Amazon. They typed keywords. They compared products manually. They read reviews. They made their decisions. Now increasingly people simply ask AI: “What is the best pressure washer for a small garden?”, “What is the best product for cooking rice?”, “What’s the best value cordless drill under £200?”

Within literally seconds, AI then compares specifications, reviews, prices, delivery times, product quality, and customer feedback.

AI as the gatekeeper changes all the rules of product discovery online

This shift from search to ask fundamentally changes all the rules of product discovery online. In essence it means that in the not-too-distant future, humans may no longer be the only shoppers online.  In effect, machines will be shopping too.  And this means that the new gatekeeper for consumer purchase will be AI.

For years, brands have optimized for SEO, search engines and marketplace algorithms.  Now they must also embrace GEO (Generative Engine Optimisation) as well as optimising for AI recommendation systems, which is a huge new challenge.  If AI cannot properly understand a supplier’s product, that product becomes invisible not only in search results but also in AI-generated recommendations. 

Content is king more than ever – or face elimination

Product content that is understandable by AI is becoming more important than ever before.  The poor content that some brands still sort of get away with – in the sense that it only reduces sales – will simply obliterate them in the future.  Terrible examples still there in abundance include poor images, mixed languages, missing technical information, inconsistent bullet points, weak descriptions, no emotional storytelling.  It’s a marketplace mess and days in which this mess will only dent sales as opposed to destroying them are very much numbered.

What brands must do now

It is essential they ask themselves the following question. Is the current content and descriptions used to optimise product sales on a website / marketplace the same content and optimisation that is required for AI agents or does this also need to change?  The answer is yes, it likely needs to change.  AI relies on structured information.  That means brands with the following will outperform competitors:

·      clean product feeds

·      detailed specifications

·      localized descriptions

·      strong metadata4

·      accurate dimensions

·      enriched imagery

The rise of Agentic Commerce

The next step is even more disruptive.  AI agents will increasingly make purchasing decisions automatically.  Imagine this: A consumer asks an AI assistant to renovate a garden. The AI compares thousands of products across marketplaces, checks delivery speed, reads reviews, validates compatibility, and builds an entire basket automatically.

And when machines start shopping, marketplaces become even more powerful.  Because marketplaces already contain massive product catalogues, customer trust, logistics infrastructure, reviews, pricing transparency, standardised product data.

The brands that will win in marketplaces

AI and marketplaces are an extremely powerful combination.  Some brands hoped AI would reduce marketplace dominance.  I believe the opposite.  AI needs large amounts of structured product information to operate effectively.  Marketplaces already own that infrastructure. That means AI may strengthen the position of major marketplaces even further.  Especially specialist marketplaces with strong product expertise.

The brands that succeed in the next five years will not necessarily be the largest.  They will be the most adaptable.  They may not have the best products.  They may simply have the best product data.  The winners will:

·      invest in product data

·      localise properly

·      automate operations

·      embrace AI tools early

·      improve content quality continuously

·      move faster than competitors

Ten years ago, marketplaces changed retail. 

Today, AI is changing marketplaces. 

And we are only at the beginning. 

At Daley Hub, we are fans of the marketplace, and we are also ahead of the curve on how AI is changing the channel. Suppliers need to get ahead now, and we can help. 

Get in touch today nils@daleyhub.com