04 Feb 2025

The DeepSeek moment for ecommerce

 

The ‘DeepSeek moment’

We all remember the first time we used ChatGPT. It felt magical, and we started to imagine a whole array of things we could do with it. The recent release of DeepSeek marks yet another pivotal moment in the AI revolution. While ChatGPT provides us with a glimpse of the future, DeepSeek made us realise that the future might be a lot closer than we thought. 

DeepSeek showed us that access to high-quality AI models can be open-source, cheap and fully democratised. If history tells us anything, this is more than just a technological milestone; it's a catalyst for a new wave of innovation and value creation. The commoditisation of AI models removes a major barrier to adoption. Nothing stands in the way of companies leveraging these tools to create unique, value-added solutions. Usage should increase dramatically. No industry will remain untouched, but we are particularly excited about what this might mean for the future of ecommerce.

Current state of marketplaces 

Marketplaces have always been at the heart of economic activity. Today’s online platforms are just yet another way of connecting supply and demand more efficiently. The success and relevance of online marketplaces is reflected in their all-time high aggregate valuation of US$12 trillion. Companies like Amazon, Mercado Livre, and Uber, have shown that marketplaces are also a great foundation for a broader ecosystem play enabling some to compound into trillion-dollar companies. 

Yet, despite all the technological advancements, today’s digital marketplaces are still not frictionless. Consumers still spend significant time searching, comparing, and selecting. Meanwhile, sellers tirelessly work to optimise their offerings, fulfill orders, administer returns, and refine their supply chain. If only marketplaces could be even better…

How AI will reshape the future of ecommerce

Currently, adoption of AI in the ecommerce space is still in its very early days. Some first applications are emerging. From personalised product recommendations to AI-powered customer support and fraud prevention, the potential applications are vast. As these first AI applications help remove layers of friction, they will supercharge marketplace network effects, leading to more listings, higher conversion rates, and increased repeat purchases.

This shift will also intensify the competitive landscape. As AI makes it easier to set up a new marketplace, we expect a longer tail of niche marketplaces. Simultaneously AI also reinforces the advantages of scale. Larger platforms with access to vast, interconnected datasets will be best positioned to harness AI's full potential, potentially leading to further industry consolidation.

Now, at this DeepSeek moment, we might very well stand at the cusp of yet another transformative shift. As artificial intelligence enters the marketplace ecosystem, we're already seeing the next frontier: Agentic Ecommerce, where AI agents will make autonomous purchasing decisions for buyers and sellers. This could fundamentally alter the nature of marketplaces. 

As we stand on the brink of this AI-driven future, one thing is clear: the marketplaces of tomorrow will be smarter, more efficient, and more personalised than ever before. The DeepSeek moment has arrived, and with it, the future of ecommerce is being rewritten.

We invite you to learn more about how AI is impacting the future of ecommerce through a new comprehensive report entitled “The AI x ecommerce revolution: how AI is shaping the future of online marketplaces" published by Prosus in collaboration with Dealroom.co. 

For more information please view the full report or visit www.prosus.com.

About Dealroom.co

Dealroom.co is the foremost data provider on startups, growth companies and tech ecosystems in Europe and around the globe. Founded in Amsterdam in 2013, Dealroom.conow works with many of the world's most prominent investors, entrepreneurs and government organizations to provide transparency, analysis and insights on venture capital activity.

About Prosus

Prosus is a global consumer internet group and one of the largest technology investors in the world.

Operating and investing globally in markets with long-term growth potential, Prosus builds leading consumer internet companies that empower people and enrich communities.

The group is focused on building meaningful businesses in the online classifieds, food delivery, payments and fintech, and education technology sectors.

Through the Prosus Ventures team, the group invests in new technology growth opportunities within logistics, fintech, health, blockchain, social and ecommerce platforms, agriculture and more.

The team actively backs exceptional entrepreneurs who are using technology to improve people’s everyday lives.

Each month, more than 2 billion customers across the globe use the products and services of companies that Prosus has invested in, acquired or built. To find out more, please visit www.prosus.com