AI is changing how small online sellers decide what to make

For years Mike McClary sold the Guardian LTE Flashlight, a heavy-duty black model, online through his small outdoor brand. The product, designed for brightness and durability, became one of his most popular items ever. Even after he stopped offering it around 2017, customers kept sending him emails asking where they could buy it.

When McClary decided to revisit the Guardian flashlight in 2025, he didn’t begin the way he might have in the past, by combing through supplier listings and sending inquiries to factories. Instead, he opened Accio, an AI sourcing and researching tool on Alibaba.com.

For small entrepreneurs in the US, deciding what to sell and where to make it has traditionally been a slow, labor-intensive process that can take months. Now that work is increasingly being done by AI tools like Accio, which help connect businesses with manufacturers in countries including China and India. Business owners and e-commerce experts told MIT Technology Review that these AI tools are making sourcing more accessible and significantly shortening the time it takes to go from product idea to launch.

McClary, 51, who runs his business from his Illinois living room, has sold products ranging from leather conditioner to camping lights, including one rechargeable lantern that brought in half a million dollars. Like many small online merchants, he built his business by being extremely scrappy—spotting demand for a product, tweaking existing designs, finding a factory, doing modest marketing, and getting the goods in front of customers fast.

This time, though, he began by telling Accio about the flashlight’s original design, production cost, and profit margin. Then Accio suggested several changes, making it smaller and slightly less bright and switching its charging method to battery power. It also identified a manufacturer in Ningbo, China, that McClary said could cut the manufacturing cost from $17 to about $2.50 per unit.

McClary took the process from there, contacting the supplier himself to discuss the revised design. Within a month, the new version of the Guardian flashlight was back up for sale on Amazon and on his brand’s website.

The new factory hunt

Although Alibaba is better known for owning Taobao, the biggest shopping site in China, its first business was Alibaba.com, the primary website that lists Chinese factories open for bulk orders. Placing an order with a manufacturer usually requires far more than clicking “Buy.” Sellers often spend days or weeks browsing listings, comparing suppliers’ reviews and manufacturing capacities, asking about minimum order quantities, requesting samples, and negotiating timelines and customization options.

But Accio has gained significant momentum by changing how that sourcing gets done. Launched in 2024, Accio exceeded 10 million monthly active users in March 2026, according to the company. That means about one in five Alibaba users consults with AI about product sourcing.

Accio’s interface looks a lot like ChatGPT or Claude: Users type a question into an empty box and choose between “fast” and “thinking” modes. But when asked about products, the tool returns more than text, offering charts, links, and visuals and asking follow-up questions to clarify the buyer’s needs. It then narrows the field to one or a handful of suppliers that appear capable of delivering. After that, the human work begins: Users still have to reach out to suppliers themselves and negotiate the details.

Zhang Kuo, the president of Alibaba.com, told MIT Technology Review that the tool is built on multiple frontier models, including the company’s own Qwen series, a popular family of open-source large language models. The system is able to pull from the site’s millions of supplier profiles and is trained on 26 years of proprietary transaction data.

For tasks like product research and sourcing analysis, the tool “blows it away” compared with general AI tools like ChatGPT, says Richard Kostick, CEO of the beauty brand 100% Pure.

Many websites have tried using AI to assist shopping, but Alibaba has been one of the most aggressive. In March, Eddie Wu, CEO of the site’s parent company Alibaba Group, told managers that integrating the company’s core services with Qwen’s AI capabilities is a top priority. During a Chinese New Year promotion of Qwen’s personal shopping AI agent, where the company gave away cash, customers placed 200 million orders, the firm says.

Vincenzo Toscano, an e-commerce seller and consultant, recommended Accio to his clients before deciding to try it himself for a new sunglasses brand. He came in with a rough vision: a brand shaped by his Italian heritage, his personal style, and a boutique aesthetic. He says the AI helped turn that concept into something more concrete, suggesting materials, refining the look, and pointing to design ideas that felt current.

But the tool has clear limits. McClary, who uses AI tools regularly, says Accio is strongest when it comes to product ideation, but less helpful on marketing questions such as advertising and social media outreach. To use it well, he says, buyers still need to challenge its recommendations, since some can be generic.

The rest of the business

As platforms become more AI-driven, manufacturers are adjusting too. Sally Yan, a representative at a makeup packaging company in Wuhan, China, says her firm has started writing more detailed product descriptions and adding information about its equipment and manufacturing experience on Alibaba.com because it suspects those details make its listings more likely to be surfaced by AI.

Yan says manufacturers cannot tell whether an inquiry from a customer was generated or guided by AI, and that her firm is not using AI to negotiate pricing or product details.

“AI agents are increasingly used by people to assist purchase decisions and even directly making transactions, and with clear data guardrails, they can become extremely useful,” says Jiaxin Pei, a research scientist at the Stanford Institute for Human-Centered AI, “but agents need to act transparently, securely, and in the customer’s best interest.” Pei says developers of these tools should disclose the data they collect and the incentives built into them to ensure that the marketplace remains fair.

Zhang, of Alibaba.com, says Accio currently does not include advertising. Suppliers can pay for higher placement in Alibaba.com’s regular search results, but Zhang says Accio is “not integrated” with that system. “We haven’t had a clear answer in terms of how to monetize this tool,” he says. For now, users can pay for additional tokens to continue chatting with the agent after their free queries run out.

Sellers say that while AI tools have made it easier to come up with ideas and get a business off the ground, they do not replace the core skills that make someone good at e-commerce. McClary believes that even when sellers have access to the same market information, some are still better at making decisions, acting quickly, and actually delivering on orders. Those differences, he says, still go a long way.

Toscano, the brand founder and e-commerce consultant, feels good about officially launching his new brand of sunglasses in just a few months: “We [small business owners] always have to bootstrap a lot of decisions. Deciding what to sell often comes down to an educated guess,” he says, “And we’re now in an era when making those decisions is easier than ever.”