Wieldex

In the past weeks, we have managed to get a glimpse of what is changing online retail in 2025. From the rollout of the AI-based personalization at Amazon, global consumers spending a record of $241.4 billion online during the 2024 holiday season, to the AI-powered interactive ads. With so much happening for digital retailers, what can businesses prioritize? Here are 3 important developments.

The beauty of trends is that you can choose which ones you go after. There is a chance that your 2025 ideas are on a completely different track. There is, nevertheless, one trend that every single managed online business must pay attention to this year. And this is why I’m starting with it. I’m talking of course about AI-powered personalization.

#1 AI Personalization

We all have a strong desire to connect and express ourselves, which is why personalization in products and services is so effective. According to the Next in Personalization 2021 Report by McKinsey, 60% of consumers say they’ll become repeat customers after a personalized shopping experience.

However, eCommerce businesses often handle hundreds or even thousands of visitors daily. Imagine that volume in your physical stores—how many employees would you need to manage such a crowd?

Thanks to AI, your online business can handle this with just one “employee”—a well-trained, AI-driven system. With AI-driven personalization, you can deliver:

  • Tailored product recommendations.
  • Laser-targeted marketing messages.

This approach enhances both the customer experience and your business profits.

The importance of personalization in ecommerce report McKinsey

As we work extensively with small- and medium-sized brands, we understand that most prefer to start small. That’s why this next trend focuses on personalization—but in a simpler, faster way to implement, without the need for AI.

#2 Customized Offers: A Powerful Upselling and Cross-Selling Technique

Back in 2022, we introduced a single feature that made a huge difference: customized offers. This feature works seamlessly with customers’ accounts, enabling your store to “remember” their previous behavior. Let’s break it down with an example.

Imagine your eCommerce store specializes in eco-friendly office clothing—niche markets are fantastic! There are two key ways to implement customized offers:

  1. When a client buys a specific product.
  2. When a client buys any product within a specific category.

Now, back to our example. Let’s say your store has the following categories: Women, Men, and Accessories. You could program the feature so that every time a customer buys the X Product, the checkout process recommends the Y Supplementary Product [Cross-Selling]. Similarly, for any purchase in the Accessories category, you could recommend the Z (More Expensive) Product [Up-Selling].

Essentially, this feature uses a simple “if-this-then-that” logic: every time X happens, your store recommends Y.

The truth is, this is a more basic version of the AI-driven personalization we discussed earlier. However, we recommend it because it’s faster to implement, requires only medium-level technical knowledge, and is a more budget-friendly approach.

#3 Stop Retargeting Ads

Many professionals in the PPC sector advocate for retargeting ads as a cost-effective way to boost conversions. However, as Neil Patel highlighted in his article “How Retargeting Could Kill Sales,” this strategy may not deliver the benefits it promises.

The Analytics Paradox

One major issue is the analytics paradox. Retargeting often shows an inflated number of impressions—your ad is seen repeatedly—but by the same audience. While this may sound effective, imagine being one of those consumers. Seeing the same ad over and over again can be frustrating, even annoying. 

The results? Lower conversions. A quick check of your analytics will likely confirm this. Retargeting ads are frequently viewed as intrusive, and annoyed consumers are less likely to engage. Instead, they may begin ignoring your brand entirely.

Cutsomer response to retargeting ads

The Privacy Problem

Retargeting ads often feel like they’re invading privacy. Companies use third-party cookies to track what people do online, leading to ads that seem to “follow” them everywhere—even after they’ve already bought the product. This can feel annoying and make people uncomfortable.

Additionally, many customers don’t know how their data is being collected or used, which makes them feel uneasy. If they think their privacy isn’t respected, they might stop trusting your business or avoid your products completely.

The End of Third-Party Cookies

Thankfully, third-party cookies are being phased out. This means retargeting ads won’t work the same way anymore. It’s a great opportunity to find better ways to keep your customers interested in your brand.

Closing Thought

As we look ahead to 2025, the path forward is clear: success in e-commerce will be defined by how well businesses balance personalization with privacy, automation with authenticity. While AI-driven personalization leads the way in creating seamless shopping experiences, smaller businesses can achieve similar results through strategic customized offers. And as we bid farewell to intrusive retargeting practices, we’re entering an era where customer trust and genuine engagement take center stage.
Three key actions for your 2025 strategy:

  1. Start small with personalization – whether through AI for larger operations or customized offers for SMEs
  2. Audit your current marketing practices to eliminate intrusive retargeting
  3. Focus on building first-party data relationships with your customers

Remember: A successful eCommerce business need to prioritize ecommerce experience and sales will naturally follow. The future of e-commerce isn’t just about selling products—it’s about creating connections that last.