Personalization is a key priority for top online merchants — and it’s not hard to see why they find it to be so important. When executives from some of the leading online retailers in North America discuss roadmaps for improving customer loyalty, customer experience and conversion, their paths often go through personalization.
From Amazon and Walmart, to Etsy and Hims & Hers, recent technology announcements and business moves demonstrate the emphasis these companies are placing on customized experiences for their shoppers. And recent survey data shows that consumers care.
In fact, 39% of consumers surveyed expect brands to personalize their online shopping experience, according to a report published in May by the data and information firm TransUnion. Among those expectations are tailored interactions, product recommendations and marketing that resonate with individual consumers’ preferences and behaviors.
Digital Commerce 360’s own research shows that merchants are investing accordingly.
Why personalization is important for online retailers
Personalization is a motivator for technology spending merchants. Asked about their reasons for spending more on ecommerce technology in February, 48% of online retailers surveyed told Digital Commerce 360 that better personalized shopping experiences were a factor. Only two other reasons were cited more — improved customer experience (64%) and attracting new customers (60%) — in results published in the 2025 Special Ecommerce Platforms Report.
During Etsy’s April earnings call with investors, CEO Josh Silverman said the online marketplace was using artificial intelligence (AI) and machine learning “to deliver deeper personalization to drive buyer engagement and frequency over time.”
“Recent AI advances enabled us to build an experience where the trends a shopper sees and the items that appear highest for them within each curated collection are based upon their individual activity, including purchased and viewed items,” he explained.
Meanwhile, the telehealth and wellness brand Hims & Hers credited personalization in its latest quarterly earnings. Revenue was up 110.6% year over year in Hims & Hers’ fiscal first quarter, reaching $586.0 million in the period ended March 31.
“During the first quarter, our subscriber base grew to nearly 2.4 million, with over 1.4 million utilizing personalized solutions,” said Yemi Okupe, chief financial officer at Hims & Hers. He called “deepening personalization” one of the company’s “five core levers” for “driving sustained long-term growth.”
Personalization at Mass Merchants
At Amazon and Walmart, personalization is no less important. And both of these companies — which rank No. 1 and No. 2, respectively, in the Top 2000, as well as in the database’s Mass Merchant category — have unique advantages that they press to achieve personalization outcomes.
First, both retailers have extensive first-party data through their paid membership programs, Amazon Prime and Walmart Plus. In Amazon’s case, Prime members will also have access to its new Alexa+ features. Amazon said those features would include advanced personalization capabilities that aid its assistant with facilitating ecommerce-related transactions and services.
At Walmart, personalization efforts include generative AI-powered search and other tools. As Anil Madan, senior vice president for cloud and data platforms at Walmart Global Tech, explained in 2024, Walmart’s scale helps further these personalization efforts.
“Every customer interaction, both online and in-store, generates data that helps us deliver highly personalized experiences,” Madan wrote. “Whether you are searching for a product, adding something to your cart or making a transaction — we are continuously processing data in real-time to improve your shopping journey.”
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