ThredUp's AI tools increase purchases and return visits

Nov 4

Nov 4 ThredUp's AI tools increase purchases and return visits

ThredUp's recent dive into AI-driven tools is paying off, with tangible results indicating a notable shift in shopper behavior and engagement. Since launching its visual search and Style Chat chatbot in August, ThredUp reports that customers using these tools are four times more likely to complete a purchase than those who don’t. Additionally, new customers who engage with these AI features show a 55% increased likelihood of returning within a week. These figures signal that ThredUp’s AI tools are more than just flashy features; they’re fundamentally enhancing user engagement, leading to measurable gains in conversions and retention.

The visual search tool has been particularly effective in improving the shopping experience by cutting “dead-end” queries by 60%, meaning fewer searches end without matching items. This improvement reduces shopper frustration and increases the time they spend browsing the platform’s extensive inventory of over 4 million secondhand items. Visual search has become a fast favorite among newcomers, with half of new users’ searches incorporating visual elements—double the rate for returning users. This shift highlights an increasing preference among consumers for intuitive, AI-assisted search functions over traditional, filter-based navigation.

While ThredUp’s AI tools are driving strong results, the broader industry response to AI-based customer service has been mixed. According to a recent IBM survey, only a third of consumers report satisfaction with AI-driven shopping assistants, and nearly 20% are so dissatisfied they vow never to use them again. ThredUp’s experience, however, suggests that these tools, when finely tuned, can create a more engaging and productive shopping experience, pointing to a bright spot in AI’s potential to reshape online retail. For ThredUp, this success serves as a blueprint for how AI can not only bring users back but encourage them to buy, setting a new standard in secondhand shopping.