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There are also reports that consumers themselves are turning to bots to get their hands on the consoles. However, scalpers are expanding their operations to consumer technology products. The first warning signs emerged early in the pandemic with bots for buying online Nintendo’s Switch and Switch Lite consoles being bought at scale by scalpers using bots in April 2020. This then spread to other products like Nvidia’s 3000 series GPUs which launched in September and remain out of stock 4 months later.
The popularity of using bots to purchase such items has grown thanks to sneaker enthusiasts. Programmers have developed software that searches the internet for deals of valuable products, and places large-quantity orders. Bots are constantly-running software programs that have hit online retail for years.
For other retailers, the real advantages of bots lie in improving back-of-house operations, rather than customer service. Rob Feldmann, CEO of flash Sale site BrandAlley, says he hopes computer programs will help his company to buy and price more intelligently in the near future. While humans can empathise with customers and build trust, that’s not to say the chatbots can’t. In fact, 67% of customers trust the personalised recommendations and suggestions provided through conversational AI interactions. Chatbots can automatically use visitors’ account information and past purchasing behaviours to instantly offer personalised recommendations – something a human can’t do at such a quick speed. They provide tailored assistance, saying the right thing at the right time, and leverage what they know about visitors to provide the most valuable buying experience possible.
« Reselling sneakers isn’t necessarily an issue in itself, but when people take advantage and use bots to purchase large chunks of stock it gives the market a bad name. » The hype and demand around sneaker drops and limited bots for buying online edition products is showing no signs of slowing down. Research from Ypulse, a New York-based authority on Gen Z and Millennials, shows 2 out of 5 in this age demographic have bought a limited edition product.
While using automated bots to buy goods online often violates the retailer's terms and conditions, there are currently no laws against using bots to buy sneakers or other retail goods. Purchasing and reselling tickets using bots became illegal in 2016 after the U.S. BOTS Act passed.