AI merchandising is the heart of any ecommerce site. It’s where product categories, groupings and recommendations meet shoppers where they are on their online journey, helping them navigate a huge inventory to find exactly what they need. Merchandisers are the MVP of ecommerce, especially during peak shopping seasons like Black Friday and Christmas. They help customers easily find what they’re looking for and gently nudge them toward items they may not have considered, thus increasing conversion rates, revenue and loyalty.

AI is revolutionizing merchandising through smarter, faster tools that make it easier for merchandisers to personalize experiences at scale and create better customer interactions. These new technologies automate repetitive tasks, improve customer service and sales, and increase productivity across the retail organization.

AI Merchandising: Key Benefits for Modern Retailers

Using predictive algorithms and other advanced technologies, AI can evaluate vast amounts of client data including search and purchase history to spot trends and predict what customers will want. These tools then create personalized recommendations based on this information, improving the customer experience and upping customer satisfaction.

Other important aspects of merchandising, such as inventory management and forecasting, can also be automated with AI tools. These programs can help maximize performance by identifying high-performing and low-performing products based on past sales, industry trends, seasonal variations and more. This enables retailers to reduce stockouts and overstock while improving their product mix.

In addition, AI-driven merchandising tools can take a number of other variables into account, such as customer size, preference and category to show only relevant items. This helps reduce friction and frustration with shoppers, such as showing products that are not in their desired size or style.