Published on January 28, 2025
The global ecommerce market has expanded significantly in recent years. In 2023, retail ecommerce sales reached more than $5.8 trillion, according to Statista.
With more customers shopping online and more companies competing for their attention, personalizing the customer experience has become essential.
Want to know what works best? We have the data to back it up.
We gathered 45 statistics about the current landscape, customer preferences, top ecommerce personalization trends for 2025, and more.
While this article examines various aspects of ecommerce personalization, these five statistics stand out.
While larger businesses have greater access to capital and resources, the widespread availability of personalization software presents an opportunity for small and medium-sized businesses to enhance their personalization efforts.
To maximize personalization benefits, ecommerce companies should create a unified approach to data collection, refinement, and governance through a Data Quality Center of Excellence or dedicated cross-functional team.
As personalization becomes standard, providing a high-quality experience is crucial.
The market for AI-driven personalization solutions has grown rapidly, bringing more options and lower barriers to adoption.
Ecommerce personalization has become a business necessity that demonstrably drives revenue.
As technology evolves and customer demands shift, businesses must find new ways to differentiate themselves. Personalization offers an effective method for achieving this. While some businesses have embraced this essential tool quickly, others are adapting more gradually.
The ecommerce personalization software market will grow from $263 million in 2023 to $2.4 billion by 2033, a compound annual growth rate of 24.8% (Market.us).
41% of retail executives report their ecommerce platform is somewhat personalized, while only 13% say theirs provide a fully tailored experience (Netcore).
Cloud-based ecommerce personalization software solutions accounted for more than 65% of market share in 2023, compared to on-premise solutions (Market.us).
Large enterprises represented 58% of the ecommerce personalization software market (Market.us).
67% of retailers believe they excel in personalizing their online websites, but only 46% of consumers agree (Sailthru/Marigold).
Between the amount of customer data marketers have access to and heightened customer expectations, personalization is only getting more sophisticated. Developments in technology, data collection, and AI continually drive improved effectiveness across personalization programs. Here's how ecommerce businesses use AI in personalization:
More than a quarter (27%) of retailers use generative AI solutions in their customer loyalty toolkit, while 13% plan to adopt them next year (Mastercard).
34% of U.S. online shoppers over 55 view brands negatively when they use AI to make recommendations or customize shopping experiences based on personal data. In contrast, 19% of shoppers between 40 and 44 share this view (Statista).
Businesses that personalize their communications and experiences build lasting customer relationships, driving greater returns on personalization investments:
Personalization increases average order value (AOV) for 98% of online retailers (Netcore).
70% of retailers that invested in personalizing their customer experience saw an ROI of at least 400% (Netcore).
80% of global business leaders agree that personalized experiences increase consumer spending (Statista).
71% of consumers say they would shop more often with companies that provide personalized experiences (Sailthru/Marigold).
Personalization in ecommerce delivers clear benefits: increased revenue, higher customer satisfaction, and improved customer retention. While many companies understand these advantages, they may lack the resources, knowledge, or tools to capitalize on them. Here are the major challenges companies face:
96% of retailers have encountered obstacles in their personalization efforts, including limited IT capacity, difficulty finding the right platform or partner, and challenges aligning internal teams (Netcore).
More than 40% of U.S. ecommerce executives cited IT bandwidth as a major obstacle to providing personalized shopping experiences (Statista).
82% of retailers identify maintaining real-time customer data as their biggest personalization challenge (Mastercard).
Half of all surveyed businesses reported that acquiring precise data for personalization remains a persistent challenge (Statista).
Personalization serves as one of the most effective tools for ecommerce marketers. By tailoring content and messages to individual users, businesses connect with customers and sell their products more effectively. Here's what customers want:
77% of consumers expect personalized customer experiences (Netcore).
49% of U.S. shoppers want to receive personalized product recommendations when buying online (Statista).
88% of consumers say the experience a company provides matters as much as its products or services (Emarketer).
73% of consumers expect companies to understand their unique needs and expectations, while 62% expect them to anticipate their needs (Salesforce).
28% of consumers consider a personalized shopping experience a factor in choosing between retailers (Netcore).
19% of consumers will pay extra for a personalized shopping experience (Netcore).
47% of Gen Z consumers desire personalized product recommendations when making online purchases, followed by 46% of Millenials, 40% of Gen X, and 36% of Baby Boomers (Statista).
83% of consumers are likely to purchase from a brand that suggests products they recently browsed (Wunderkind).
91% of shoppers would abandon an online retailer over a poor shopping experience (Netcore).
63% of consumers will stop engaging with companies that use poor personalization strategies (Smart Insights).
By tailoring products, services, and communications to specific customer preferences, businesses better serve customer needs and build stronger relationships. Effective personalization shows customers they matter beyond transactions and helps build loyalty and trust:
33% of retailers said their most significant customer loyalty challenge was their ecommerce site lacking personalization optimization (Mastercard).
44% of retailers identified website personalization tools as one of their primary tools for customer retention (Mastercard).
56% of online customers say they are more likely to return to a site that offers product recommendations (Invesp).
After implementing personalization strategies, 53% of retailers said that they saw increased loyalty and retention, while 47% reported increased sales (Mastercard).
65% of consumers say they are more likely to stay loyal when a company offers a more personalized experience (Salesforce).
62% of business leaders agreed that personalization positively impacted customer retention (Statista).
Customers will generally share personal information if they believe it will enhance their experience, but they expect ecommerce businesses to handle that information responsibly. Successful ecommerce businesses balance personalized experiences with customer privacy across channels:
57% of online shoppers will provide their data in exchange for personalized offers and discounts (Salesforce).
67% of retailers agree that detailed purchase history is the most valuable data point to collect (Mastercard).
54% of retailers use personalization to show customers recommendations based on similar activity (Mastercard).
27% of retailers send location-based communications and offers (Mastercard).
In 2022, personalized site search results were the most effective personalization method for about 60% of B2B ecommerce companies (Statista).
82% of brands agree that personalized search is essential for higher conversions (Nosto).
49% of consumers prefer email over other methods for receiving personalized offers and exclusive messages (Wunderkind).
77% of consumers cite data privacy policies as important or critically important for maintaining brand loyalty (Wunderkind).
These ecommerce personalization statistics reveal that personalization has evolved from a competitive advantage to a business necessity. While implementation challenges persist — from technical constraints to data management — the rise of AI and advanced analytics creates opportunities for businesses of all sizes. As ecommerce continues to grow, the companies that thrive will be those that use personalization to create meaningful customer experiences while respecting privacy and maintaining authenticity across all channels.
Subscribe for updates
Build better digital experiences with Contentful updates direct to your inbox.