As Oh Polly celebrates its tenth anniversary, the online women’s fashion retailer is making waves with a unique addition to its customer service toolkit: an AI chatbot named Nibble, designed to facilitate price negotiations. While this approach has garnered attention for its innovative take on customer engagement, responses to the feature have been decidedly mixed.

The concept of haggling in a digital marketplace is not entirely new, but Nibble represents a notable shift in e-commerce dynamics. One TikTok user recounted her experience using the chatbot to negotiate a dress originally priced at £175, which had already been reduced to £88. Through further engagement with Nibble, she secured an additional discount, bringing her final bill down to £76. Her video quickly garnered over 41,000 views, igniting a flurry of commentary on the implications of such pricing flexibility. Some users expressed their delight at the opportunity to save, while others labelled it as indicative of an initial overpricing strategy: “This just proves the price shouldn’t have been what it was to start with in the first place,” noted one commenter.

A spokesperson for Dojo, a payments specialist, highlighted the growing trend of AI chatbots in e-commerce, suggesting that tools like Nibble could enhance customer satisfaction while potentially increasing sales conversions for retailers. Currently, there are approximately 82,450 monthly searches for ‘coupon codes’ and 58,230 for ‘discount codes,’ demonstrating a clear consumer appetite for savings. By harnessing AI to deliver bespoke discounts without directing customers away from the site, retailers hope to refine their competitive edge.

Yet, the rollout of Nibble hasn’t been without its challenges. While many consumers are keen to embrace the opportunity to negotiate, others feel uneasy about the inherent inequality of dynamic pricing strategies. As this technology is still in its early stages, determining fair pricing in the face of individual negotiation will require careful monitoring and ongoing refinement.

This reflects a broader trend in retail where AI-driven technologies are becoming increasingly integrated into everyday operations, from personalising shopping experiences to managing inventory and analysing consumer behaviours. AI tools are increasingly viewed as critical for enhancing customer interactions while also streamlining operational efficiencies. Retailers that successfully implement such technologies stand to benefit considerably in terms of operational output and customer loyalty.

Beyond haggling, the role of AI chatbots in e-commerce is significant. They not only provide round-the-clock customer service but can also enhance sales through personalised product recommendations and effective cart recovery strategies. Successful implementations by brands such as Sephora and H&M underline the potential of AI to transform the shopping experience, driving sales and fostering customer loyalty.

As retailers navigate this rapidly evolving landscape, the focus on AI’s integration into e-commerce is set to intensify. With 2025 on the horizon, industry observers anticipate that AI will shed its ‘overhyped’ image, becoming a standard feature in retail processes. The introduction of awards celebrating innovation in AI within the retail sector highlights this shift, reinforcing the need for businesses to embrace technological advancements for sustainable growth.

The path ahead, however, is not without its complexities. Balancing consumer desires for savings against the risks of perceived inequity in pricing strategies will challenge retailers like Oh Polly. As they explore the potential of AI, the industry must remain vigilant in ensuring that the advantages of new technologies do not come at the expense of fairness and transparency.


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Source: Noah Wire Services