Semantic search converts both the query and every product into high-dimensional vectors using a neural embedding model (Sentence-BERT, OpenAI text-embedding-3, Cohere, etc.). Retrieval then becomes nearest-neighbor search in that vector space. Synonyms, related concepts, and natural-language phrasing all collapse to nearby points.
The win in ecommerce is on long-tail and natural-language queries: “something warm to wear hiking in october” has zero exact-keyword overlap with “fleece jacket”, but their embeddings are close. Conversational and voice search lean almost entirely on semantic retrieval.
Trade-off: semantic search underperforms on exact-match queries — SKU lookups, brand-and-model searches, dimension-specific queries. That’s why most production systems run hybrid search (BM25 + vectors) rather than vector-only.