How E-Commerce Sellers Can Enhance Personalization in 2025

E-commerce sellers have long known that personalization drives conversions. Amazon is the perfect example of how to tap into the power of making something relevant for individual users. When you land on its home page, you’re given examples of products you might enjoy based on your browsing and buying history. Smaller brands may struggle to reach the level of personalization a large corporation provides but can still enhance their efforts and see massive results. 

How E-Commerce Sellers Can Enhance Personalization in 2025

Tapping into science-backed strategies in 2025 is easier than in the past. Advances in artificial intelligence (AI) and machine learning mean even small startups have plenty of data to customize user experiences (UX). Personalization brings in $9 billion in revenue per year, with 92% of companies using AI software to drive customization. 

If your company could benefit from ramping up your optimization efforts based on UX, consider these changes. 

Identify Repeat Customers

Small businesses sometimes make the mistake of constantly trying to gain new customers. The problem with this strategy is that a new client has no reason to be loyal to your brand. The cost of acquiring them may outpace the lifetime value of more established patrons. 

However, offering a small discount for someone to share their email is no longer enough in an age of personalization. You must tap into their identity as a customer. Ask those who buy to fill out a survey so you can customize offers and send them specials no one else sees. You must make the incentive enough that they’ll want to take the time to fill out your forms. 

Collect Demographic Data

In addition to asking people about their product preferences or why they buy something, you need to get to know your target audience on a demographic level. Details such as their gender, age, profession and family setup can help you segment your users.

A study showed that personalized advertising is 54% more engaging to customers than general ads. The more relevant the message, the higher the success rate. When you better understand a person’s pain points, marketing can create messages users respond best to.

AI is excellent at collecting data from your internal files and public sources, sorting it and spitting out reports about how to best reach people. Picture a company selling burglar alarms. Perhaps its target audience is moms with young children worried about local break-ins and keeping their families safe. Understanding their emotions and motivations can drive your marketing messages. 

Get Predictive

Advances in AI make predicting buyer behavior easier than ever before. Tapping into users’ past buying habits can predict what products they might purchase in the future. Get ahead of their shopping and suggest items before they start looking.

When you figure out what your audience wants and offer it to them before they even know they want it, you’ll capture their interest ahead of competitors. They’ll feel understood and more loyal to your brand. 

Segment Your Audience

Personalization is about more than just grouping your customers. You must understand how their personal buying habits and demographics translate to which items they want or what offers they’ll respond to. Studies show companies utilizing personalization grow 40% more than other brands. 

With so much information at marketers’ fingertips in 2025, it’s time to ramp up the ways you personalize advertising campaigns. Use AI alongside personal knowledge to determine what different segments want and offer it to them. If something isn’t working, lose it and try a different approach, taking note for future efforts.

The Result of Personalization Efforts

Upgrading personalization in 2025 is easier for e-commerce businesses than ever before. Tapping into the power of AI and machine learning can create personalized experiences that drive buying behavior. The result will be more conversions and engaged customers. Create touch points across all your channels that make people feel understood and you’ll drive brand loyalty, creating automatic referrals and reducing churn.