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Why AI-based product recommendations are crucial for boosting eCommerce sales

Do you know why Amazon is so successful?

While there are many reasons for that, Amazon reported revenue increases of an amazing 35% in the past because of its almost magical ability to upsell and cross-sell.

Amazon is very good at that because it understands the customer’s needs. 

So, for example, there is no sense in trying to sell me headphones If I want to buy a marketing book. 

But how does Amazon know what I prefer?

The answer is simple – AI (Artificial Intelligence).

If you’re not currently using these proven tactics on your eCommerce website, you should immediately consider it because your competitors sure are.  

It’s time to embrace this trend in the eCommerce business and see for yourself how your sales will skyrocket in no time!


What is the difference between upselling and cross-selling?

While upselling is a practice of upgrading a customer’s product, cross-selling is the art of engaging customers to buy more similar products or products that usually go in a package. 

For example: if you add a pair of sneakers into the cart, offering a pair of similar but more expensive shoes from the new collection would be upselling. 

Likewise, if you buy shoelaces according to product recommendations, that sale results from a successful cross-sell strategy.

Keep in mind that you need to upsell and cross-sell offers that make sense. Otherwise, you can discourage customers from buying again.

Imagine you go to McDonald’s. 

The staff asks if you want fries with your order, and when you answer no, they ask again, “Are you completely sure? We have a great donut with that.”

You’ll probably just be irritated, and an upsell tactic would certainly be a failure and have a counter-effect.

Upselling is a deal that benefits both the seller and the buyer. 

It is ok to recommend that customers pay a little extra but wind up with a much better item. For example, you can offer customers a pricier mobile phone (10-15%) If it’s equipped with a much better battery, camera, memory, etc.

So that’s why it’s extremely important to upsell and cross-sell with dignity and offer mutually beneficial deals. 

Why is AI so important for an online business?

When you go to the bookstore, you have to walk through it and browse many books until you find one you’d like to read.

But on Amazon, the bookstore rearranges according to you.

If you don’t like cats, Amazon will never recommend books about these little cuties. 

So, creating a personalized user experience provides real value to the customer. By doing that, you will also dramatically improve UX and customer satisfaction

Besides, personalized UX also creates an army of customers loyal to your brand. 

This is important because, statistically, loyal customers are ready to spend around 31% more than first-time buyers.

When you offer appropriate recommendations, you upgrade value for customers, and they will regularly purchase from you, increasing your revenue. 

If you cross-sell something that fits together with your customers’ demands, they will trust your brand much more. 


When customers recognize that you care about their interests and not just force sales, it will positively affect your brand awareness. 

So, you can be on their top of the mind every time they want to buy the product and services you offer. 

By deploying the best AI technology, your business will:

  • save time and money by automating and optimizing routine processes
  • make quicker choices based upon outputs from modern cognitive technologies and stay clear of errors and human mistake
  • use data to anticipate consumer preferences and supply them better
  • maximize sales opportunities 

AI is not important for eCommerce businesses just because of product recommendations. 

It also provides a human-like touch with chatbots, a new digital retailer that works 24/7 and requires no salary or vacation. 

Besides, augmented reality is one amazing opportunity to provide a truly unforgettable customer experience that will make them want to come back for more. 

Every feature based on AI will help you grow your eCommerce business because it all comes down to satisfying your customer needs, and AI does exactly that.

Take your business revenue up with AI-based product recommendations

A MyBuys study on more than 100 eCommerce businesses recognized a 915% boost in the total website conversion rate on recommended items in the shopping cart. 

When AI-based product recommendations are based upon reliable customer data, they can be a powerful tool for enhancing conversion, average order value, and sales. 

The shopping cart is a specifically efficient page on which to present recommended products because it showcases other similar and related products according to the customer’s chosen items. 

It is also an excellent location for impulse purchases.

In the world of eCommerce, AI-based product recommendations were a game changer and now play a significant role in reshaping the online shopping experience. 

From Netflix’s “Movies you may enjoy…”, Amazon’s “Customer who bought this item also bought…” to Facebook’s “People you may know…”, AI recommendations are widely used practice for upselling and cross-selling around the globe. 

But how are product recommendations working?

Simply put, a recommendation engine is a tool based on AI and used by developers to predict user choice. 

AI processes data through 4 core steps – collecting, storing, analyzing, and filtering data. 

Algorithms developed for this purpose generally rely on user past purchases and page views. 

But with technology evolving rapidly, today you can even suggest in-the-moment recommendations and quickly find products or services that will interest that particular individual customer. 

Product recommendations are crucial for targeted campaigns also, such as email marketing and retargeting, and make an integral part of a comprehensive marketing strategy. and Omnishop recognized these demands of eCommerce businesses, so in collaboration, we will integrate artificial intelligence into your eCommerce platform, help you create a seamless omnichannel shopping experience, expand your customer base and reach new heights of business success. 

Ready to step up your mobile game?

Let’s book a 30-min mobile strategy session and give your shop a boost.

Ready to step up your mobile game?

Let’s book a 30-min mobile strategy session and give your shop a boost.