Startups working on AI-powered e-commerce tools often rely on external data or user signals to build and improve their models. However, a company called Remark is taking a different approach by letting thousands of human experts chat with users while they are purchasing items, and then using that knowledge to train models.
Remark also makes those experts “available” all the time by having their AI-powered persona answer questions. Remark said that this resulted in a 10% net revenue gain for partners, which was a great sign for investors.
The startup on Tuesday announced $16 million in Series A funding led by Inspired Capital with participation from Stripe, Neo, Spero Ventures, Shine Capital, and Visible Ventures. This brings the startup’s total funding to date to $27 million. Remark plans to use the funds to grow its team of 25 people and spend on model training.
Remark joins a number of startups that are plugging AI into various areas of e-commerce, such as search, try-ons, chatbots, and dynamic page generation that is suited for AI-powered experiences. While these companies operate in different areas, merchants can only spend so much to enhance their online experience. In this market, Remark could have challenges in scaling and competing with other e-commerce startups using AI.
While Remark previously depended on a cut of the sale to generate revenue, the company has moved to a SaaS-based (software-as-a-service) model for better cash flow and now takes a fee based on site traffic.
The company’s CEO, Theo Satloff, said that physical stores tend to see high conversion rates of 30-35% compared to online stores that convert at roughly 1.5%. With Remark, the startup wanted to change that.
“The reason for low conversion rates on e-commerce sites is that people have a lot of questions when they shop. They have to go on Reddit or ask their friends to get advice about the purchase. In a store, a person with product knowledge helps them, so the conversion rate is high,” he explained.
“At Remark, we want to bring that kind of expertise to online shopping for our partners,” Satloff said in a call with TechCrunch.
When a user visits a site that uses Remark, the startup’s tool generates a set of dynamic questions that can drive the user’s purchasing decision. If a user is looking for pots and pans, the site could ask what kind of stovetop they have, or if they use diesel conduction or gas. When the user clicks on one of these questions, a chat interface opens where they’re matched with an expert who can offer advice about buying an item.
Startups working on AI-powered e-commerce tools often rely on external data or user signals to build and improve their models. However, a company called Remark is taking a different approach by letting thousands of human experts chat with users while they are purchasing items, and then using that knowledge to train models.
Remark also makes those experts “available” all the time by having their AI-powered persona answer questions. Remark said that this resulted in a 10% net revenue gain for partners, which was a great sign for investors.
The startup on Tuesday announced $16 million in Series A funding led by Inspired Capital with participation from Stripe, Neo, Spero Ventures, Shine Capital, and Visible Ventures. This brings the startup’s total funding to date to $27 million. Remark plans to use the funds to grow its team of 25 people and spend on model training.
Remark joins a number of startups that are plugging AI into various areas of e-commerce, such as search, try-ons, chatbots, and dynamic page generation that is suited for AI-powered experiences. While these companies operate in different areas, merchants can only spend so much to enhance their online experience. In this market, Remark could have challenges in scaling and competing with other e-commerce startups using AI.
While Remark previously depended on a cut of the sale to generate revenue, the company has moved to a SaaS-based (software-as-a-service) model for better cash flow and now takes a fee based on site traffic.
The company’s CEO, Theo Satloff, said that physical stores tend to see high conversion rates of 30-35% compared to online stores that convert at roughly 1.5%. With Remark, the startup wanted to change that.
“The reason for low conversion rates on e-commerce sites is that people have a lot of questions when they shop. They have to go on Reddit or ask their friends to get advice about the purchase. In a store, a person with product knowledge helps them, so the conversion rate is high,” he explained.
“At Remark, we want to bring that kind of expertise to online shopping for our partners,” Satloff said in a call with TechCrunch.
When a user visits a site that uses Remark, the startup’s tool generates a set of dynamic questions that can drive the user’s purchasing decision. If a user is looking for pots and pans, the site could ask what kind of stovetop they have, or if they use diesel conduction or gas. When the user clicks on one of these questions, a chat interface opens where they’re matched with an expert who can offer advice about buying an item.
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