SalesPredict: eBay acquires second machine learning company in two months

Ebay marketing sales get tiny lift in Q1This story was delivered to BI Intelligence "E-Commerce Briefing" subscribers. To learn more and subscribe, please click here.eBay has acquired predictive analytics company SalesPredict to help with the company's machine learning and data science work, reports VentureBeat. The acquisition is part of the e-commerce company's structured data push for sellers. Structured data is eBay's standard way of categorizing and displaying products for sale on its marketplace. Utilizing SalesPredict's data analysis and machine learning skills, eBay will be able to better refine its search functions in order to serve the right products to prospective shoppers. While using structured data is not a requirement, eBay heavily encourages its sellers to adhere to its terms. As of Q1 2016, 60% of listed items on the marketplace used its structured data rules, according to eBay's earnings report. This is up from 37% in Q4 2015.This is also eBay's second acquisition of its kind in two months - in May the company acquired artificial intelligence company ExpertMaker. After a disappointing earnings report in the first quarter, eBay announced its intentions to completely revamp its marketplace experience. Little detail was given, but the company is planning on launching new user experiences and product categories to draw in shoppers.SalesPredict and ExpertMaker are likely playing a large role in the company's approach to this revamp. Machine learning technologies can offer insight into what consumers are drawn to first, what they search for, and what they ultimately end up buying based on those searches. We expect to see eBay use that information to simplify the purchase journey and return search results that are more likely to result in a sale.eBay needs to pull out all the stops to reinvigorate its online marketplace. GMV growth continues to struggle. eBay sold approximately $20.4 billion worth of merchandise during Q1 2016, reflecting 1% growth YoY. This is slightly better than 2015, which saw a 2% YoY decline during each of the first three quarters and zero growth in GMV during Q4.Active buyer growth is slowing too. Although 162 million people bought something on eBay in Q1 2016, up 4% YoY, the growth rate of active buyers has steadily declined since Q2 2014.To receive stories like this one directly to your inbox every morning, sign up for the E-Commerce Briefing newsletter. Click here to learn more about how you can gain risk-free access today.