Can an AI Beat You at Haggling? ASOS Finds Out

Many eCommerce players are already using AI for various functions, but ASOS.com's latest release is particularly innovative. The UK-based online fashion retailer is allowing customers to haggle over prices with an AI-powered chatbot called Nibble.

Developed by London-based Nibble Technology, the tool will initially be used for River Island branded inventory. ASOS joins over 300 other brands and retailers, including Iconic London, in using the technology.On the ASOS clearance site, asossamplesale.com, users can negotiate back and forth with the bot. The Evening Standard reports that some users have received discounts of up to 40% on their ASOS purchases through this increasingly popular feature.

Nibble Technology explains that custom-built algorithms determine offers by taking into account several factors, including the bot's previous offer, the user's last offer, the length of the negotiation, and more.

This isn't ASOS' first move into AI. Earlier this month, the company signed a new three-year AI deal with Microsoft to take advantage of the software company’s AI tools. Last February, ASOS also began customer testing of its AI Stylist. This helps customers discover new looks through a conversational interface.

Walmart Shifts China Strategy, Selling Stake in JD.com

Walmart's initial investment in JD.COM was a cornerstone of its China strategy. However, the company recently sold its entire US$3.74 billion stake in the Chinese eCommerce giant, marking a significant shift. The move highlights the evolving nature of Walmart's relationship with the complex Chinese market.

The sale of the JD.com stake reflects a broader strategic retreat by Walmart from markets with ongoing profitability challenges. In recent years, the retailer has exited major markets such as Japan, the UK, Brazil, and Argentina. Industry analysts attribute these exits to Walmart's struggles against entrenched local competitors.

China's retail landscape is notoriously difficult for foreign players. France's Carrefour SA, for example, closed more than 140 stores in mainland China in 2023, leaving just four remaining. Similarly, the UK's Tesco PLC exited the market altogether.

Despite this challenging environment, the sale of its entire stake in JD.com indicates Walmart's growing confidence in its independent China strategy. The success of Sam's Club, now a leading warehouse club chain in China, and the booming demand it is experiencing, suggests an opportunity for Walmart to build its own eCommerce application - a rarity for foreign companies in China.

While Walmart currently relies on JD.com's courier services, the company has been steadily building its own logistics infrastructure, including an app and an expanding warehouse network. So, this sale does not appear to be a retreat from China, but rather a pivot toward a more independent future in the market.

Seoul Authorities Find Toxic Substances in Shein and Temu Products

Women's accessories sold by some of the world's most popular online shopping firms contained toxic substances sometimes hundreds of times above acceptable levels, authorities in Seoul said. Chinese giants including Shein, Temu and AliExpress have skyrocketed in global popularity in recent years, offering a vast selection of clothes and accessories at stunningly low prices that has helped them take on US titan Amazon.

The explosive growth has led to increased scrutiny of their business practices and safety standards, including in the European Union and South Korea, where Seoul officials have been conducting weekly inspections of items sold by online platforms. In the most recent inspection, 144 products from Shein, AliExpress and Temu were tested, and multiple products from all companies failed to meet legal standards.

Shoes from Shein were found to contain significantly high levels of phthalates -- chemicals used to make plastics more flexible -- with one pair 229 times above the legal limit. "Phthalate-based plasticisers affect reproductive functions such as sperm count reduction, and can cause infertility and even premature birth," an official from Seoul's environmental health team told AFP.

One such chemical "is classified as a human carcinogen by the International Cancer Institute, so special care should be taken to avoid long-term contact with the human body", they added. Formaldehyde, a chemical commonly used in home building products, was detected in Shein's caps at double the allowable threshold.

Two bottles of nail polish from Shein were found to have dioxane -- a possible human carcinogen that can cause liver poisoning -- at levels more than 3.6 times the allowed limit and methanol concentrations 1.4 times above the acceptable level. Shein told AFP that they "work closely with international third-party testing agencies... to regularly carry out risk-based sampling tests to ensure that products provided by suppliers meet Shein's product safety standards".