eBay Enhances AI Translation to Drive Spanish-Language Sales Growth

Since eBay introduced artificial intelligence translations for product listings in 2014, sales from the U.S. to Spanish-speaking Latin American countries have surged by nearly 11%, according to a study by researchers from MIT and Washington University in St. Louis. The research, which analyzed eBay’s data, found that these AI translations effectively helped buyers and sellers navigate language barriers.

Prior to 2014, eBay offered basic automatic translation options, but the implementation of AI technology improved translation accuracy by approximately 10%. While the AI primarily enhanced search queries and listing titles—rather than product descriptions—this increased precision made it easier for consumers to locate the items they desired, resulting in higher sales.

The study also examined AI translations for languages such as French, Italian, and Russian, noting similar positive outcomes. However, the focus remained on Latin America due to eBay’s specific rollout of translation tools for that market.

Researchers accounted for various factors, including title length and marketing expenditures. They acknowledged that when eBay launched AI translations for Latin America, it also introduced additional localization features, such as pricing in local currencies and tailored promotions.

The findings suggest that accurate translations significantly facilitate international business interactions. Since completing their research, the economists pointed out that Google has developed a more advanced translation tool that greatly improves translation quality by considering the context of entire sentences rather than translating individual words. With Google’s translation services being utilized more widely than eBay's, the researchers anticipate that this technology could have a substantial impact on cross-border trade.