How online stores use personalization

Online shopping can become overwhelming if you can't find what you need. Shoppers often face an endless sea of choices or become tied up with time-consuming browsing. Many reputable online retailers have noticed these frustrations. That's why they have turned to online shopping personalization to create a smoother and faster digital shopping experience.

What is e-commerce personalization?

Personalization in e-commerce occurs when retailers customize the shopping experience for each person based on their unique preferences and behaviors.

To do this, online stores use data such as internet browsing history, purchase history, and location and device information. Retailers can then provide shoppers with product recommendations, promotions, and other related content based on their online preferences.

Potential benefits of online shopping personalization

Shoppers may benefit from personalization in a number of ways:

  • Discovering new products or finding deals based on previous searches.
  • Saving time by seeing only the most relevant products, sizes, and colors.
  • Making more informed purchase decisions based on personalized offers.
  • Gaining trust or making a connection with a brand because it can serve up preferred products and services.

Personalization can also go beyond product descriptions and banner ads by suggesting faster ways to pay or loyalty programs.

Examples of online shopping personalization

People who give retailers permission to use their data for personalization might see these types of shopping advantages:

  • Recommendations on sites, apps, or social media: Online stores may suggest items based on your browsing history. Apps may show personalized product carousels with choices relevant to shopping cart items or searches.
  • Tailored marketing content: This might include lifestyle content or offers based on products or topics people like.
  • Dynamic search results: Search results may be fine-tuned to show items that align with previous searches and browsing patterns, making it quicker to find desired products.
  • Rewards offers: Rewards programs, such as PayPal Rewards, may present offers that align with shopping history or frequently shopped brands or categories.

Is shopping personalization safe?

What about data privacy? How can shoppers stay in control of online retail experiences? Knowing the following information can help when making decisions about personalization:

  • Online stores typically gather data through cookies that track browsing habits, purchase history, and even device usage, which they then analyze for personalization purposes.
  • Personalization may raise data privacy concerns. Reputable brands typically give consumers ways to control the level of personalization they experience. Usually shoppers can opt out of — or modify — data collection whenever they want.
  • In general, retailers collect data to improve experiences, make helpful product suggestions, and enable swifter purchases – rather than for intrusive purposes.

Shoppers should still remain cautious by sharing data only with reputable organizations. For example, it may be useful to research past data breaches or security issues before providing personal information to a new retailer. Using a VPN may also help limit data collection, protect data, limit scams, and underpin safe online shopping.

The future of personalized shopping

The future of personalization may be impossible to predict. But it’s a space that shoppers should watch closely for the sake of convenience and data privacy.

The uptake of artificial intelligence (AI) means personalized shopping may soon become even more sophisticated and convenient for retailers and shoppers alike. Think AI-powered recommendations or chat-like dynamic content. These technological upgrades could potentially solve dilemmas for online shoppers in the future and make the shopping process more efficient.

Explore the PayPal app.

Was this content helpful?

Related content

We use cookies to improve your experience on our site. May we use marketing cookies to show you personalized ads? Manage all cookies