Arvind Rapaka

28 Mar 2022

Benefits Of Personalized Recommendation In Fashion E-Commerce


Benefits of personalized recommendation in fashion e-commerce

Aggregate Data estimates that the CAGR (compound annual growth rate) for online fashion stands at 10.8% for 2018-2023. Fashion is the largest B2C segment globally, and fashion eCom will touch the $900 billion mark by 2023.

According to Business Insider, Netflix gains a massive $1 billion each year by showing personalized recommendations. Their AI-powered personalized search recommends what users can watch according to the shows or movies the users have already seen. The AI-based recommendations are clocking a massive payout for Netflix year-on-year.

The fashion industry is one of the most competitive industries in the business ecosphere. With hundreds of thousands of brands in the market, it is a mammoth task to stand out and get those sales. Not only is it difficult for small and medium business owners to survive or thrive, but it is also becoming increasingly difficult for big brands such as H&M to survive the change in the market dynamics. Not so long ago, you used to go to the store physically to buy clothing or fashion accessories. With increasing globalization and the acceleration of digitalization, you can now buy your favourite clothes or accessories with the click of a button.

The coronavirus has further caused retailers to tweak their strategies. Shoppers have not shopped physically for the duration of the coronavirus and are still a bit sceptical about stepping outside to buy their clothing or fashion accessories. These factors have made it a necessity rather than an option for fashion houses to shift to online selling.

Selling clothing and fashion accessories online comes with its own set of challenges. It would be best to design your online store to get many returning customers and ensure that shoppers buy before clicking the “x” button. There are various ways to create your website, but these are more like shooting an arrow in the dark instead of looking at the target and hitting the bull’s eye. The only way to get those customers to buy something and make sure that they revisit your website is to have a strategy that works.

The strategy that works includes targeting customers through AI-based personalized recommendations. It involves providing the customers with a personalized shopping experience based on their online behaviour.

AI-based personalized recommendations help you to target the shoppers that visit your website. AI-based e-commerce personalized recommendations ensure that the customers find what they are looking for, which means e-commerce conversion improvement.

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Reasons why fashion e-commerce can be a money-making machine

  • Increasing customers 
  • Increasing willingness to buy online 
  • Shoppers love to spend on clothes 
  • Shoppers love to spend on fashion accessories 
  • Shoppers love personalized items

Using AI-based personalization is imperative to tap this billion-dollar market and grab a little, if not a massive portion of it. Personalized search helps people get what they specifically want. The AI-powered personalized search helps track the required search through your search history. With AI-based recommendations, you can track the user behaviour session by session. You can also track user activities and provide recommendations based on shoppers’ accounts and what they buy or add to the cart.

With fashion e-commerce, you can use AI-based recommendations and take advantage of the shoppers’ buying history and onsite behaviour. You might be aware that many fashion e-commerce websites that you visit use AI-based e-commerce product recommendations to sell more to their customers.

Reasons why fashion e-commerce can be a money-making machine

AI-based personalized recommendations work in a way where manual work done for presenting the correct type of products to the right customers ceases to exist. The AI finds what your shopper wants and shows it without you having to do anything manually.

AI calculates what shoppers want based on their history, search results, most viewed, adds to cart, and purchases. AI predicts what your shopper wants by learning their activities in real-time. The behaviour of your shopper and the intent is what AI is a master at predicting. You do not need any human intervention to present the best recommendation to any customer. The time-consuming and tedious human-based work goes for a toss if you use AI instead. The AI shows the customer what they want to see, and this results in e-commerce conversion improvement.

You can save a lot of money, time, and effort if you use AI-based recommendations for your fashion e-commerce store.

Benefits of AI for e-commerce include a higher –

  • Conversion rate 
  • Revenue 
  • Cart size 
  • Cross-selling 
  • Customer satisfaction 
  • Customer retention 
  • Returning customers

How does it work?

Select an AI-recommendation mechanism in which you have multiple things going on for you. If you want your AI product recommendation to work, you need to have many algorithms working in unison. This will ensure that the customer is being induced to buy your products at every step of their journey. You can set up rules for every step of the customer journey to personalize the shoppers’ experience to the core. These specific rules can result in high conversions for your e-commerce store.

You have the power to suggest highly relevant products to your customers at different touchpoints of the shopping process with AI-based, personalized product recommendations. Customers love a personal touch, such as when you address customers by their name in emails or when your eCom store remembers their birthdays, due to the fact that it makes the customers feel important.

If your customers shop for a shirt, they may also be interested in jeans or even socks. If a high percentage of your shoppers view the same or similar items during the process of buying a shirt, you can reliably use AI recommendations to show these products to other shoppers.

Doing so requires the collection of the user data on a large scale and the use of recommendations that are automatically generated. You do this in locations where your user will most likely respond. Your customers will feel as if you understand their needs personally, and they will feel closer to your brand because they will resonate with you.

Be efficient

One of the most daunting tasks you can come across is manually setting up your cross-sell pages, upsell pages, and product recommendations. AI-based e-commerce personalization allows you to automate personalized product recommendations by setting up rules for specific situations. Manually setting up product recommendations can take a vast portion of your precious time, and AI-based recommendations can help you save lots of time. This allows you to focus on other aspects of your business and makes your business more efficient, along with you.

Some more facts-based benefits of personalized recommendation in fashion e-commerce

  • Epsilon says that 80% of shoppers prefer to buy from stores that have a personalized shopping experience. 
  • Monetate says that eCom store owners gain 20% in sales when they incorporate AI-based personalized recommendations in their online store. 
  • Segment says that 44% of shoppers agree to become repeat shoppers if they had a personalized shopping experience. 
  • Forrester says that 77% of shoppers pay more, choose, or recommend a brand that provides an AI-based personalized recommendations experience. 
  • Forrester also states that 53% of digital store managers lack the technology needed for AI-based personalized experiences.

Reduction in cart abandonment

According to Business Insider, online sellers lose upward of $4 trillion collectively every year. The cart abandonment revenue that is there for the taking is massive. For any individual store owner like you, AI-based recommendations can help you convert those cart abandonments into purchases.

A good way to do that is to set up an exit-intent rule where the product that your customer might be most interested in pops up when they are about to leave the page. You can also offer discounts, coupon codes, free shipping, and add-ons once they are about to press the “x” button.

Increase in conversions

One of the many ways you can increase those conversions is by getting the customers or even potential customers to sign up for your newsletter. You can add the opt-in form and collect your prospective buyers’ emails.

You can then send emails to your customers and have them redirected to your shop page from where they buy the given product, which will automatically be according to their liking and most preferred depending on their past behaviour. This leads to more sales for your store and more revenue with e-commerce conversion improvement.

Increase in average order value

Through AI-based recommendations and AI-powered personalized search, you can increase the average amount that a customer spends on your store. If a customer buys one product only, you can show personalized recommended products through the AI and have your customer buy more products.Not only does this increase your sales and revenue, but also the average cart value.

Ways to use AI-based recommendations

  • Fully automated make-a-look / complete-the-look recommendations 
  • Shop by new arrivals or latest products 
  • Allow shopping by discounts 
  • Allow shopping by brands 
  • Show the most popular product 
  • Show what other customers also liked 
  • Show product bundles 
  • Show personalized recommendations 
  • Show similar products


AI-based recommendations are becoming increasingly valuable and popular and are something that you should incorporate into your website as soon as possible. Numerous benefits outweigh the negatives (if any) by a long shot. Start using AI-powered personalized recommendations and watch your business grow right away!

— Arvind Rapaka, Founder & co-CEO

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