Automated Merchandising

What Does Automated Merchandising Mean?

Automated merchandising tracks specific consumer behaviors and trends in online shopping, which vendors use to increase sales. The purpose of automated merchandising is to predict consumers’ purchasing behavior and offer shopping suggestions in response.

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Automated merchandising is a form of electronic commerce (e-commerce) that combines personal electronic data such as Web searches along with predictive analytics.

Automated merchandising is also known as predictive merchandising or personalized product recommendations.

Techopedia Explains Automated Merchandising

Automated merchandising captures critical information during the online shopping process to create a custom shopping experience for individual users through online product suggestions, thus increasing vendor revenue. Visitor preferences for specific items are tracked and analyzed, so that the system can predict and automate product offers and purchasing ideas to similar customers.

Automated merchandising techniques offer consumers cross-sells and up-sells of other products related to given customer interests indicated through an item purchase or search on the vendor’s website. Shoppers can compare similar products, while vendors can target specific product displays to returning customers based on their preferences.

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Margaret Rouse
Technology Expert

Margaret is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical business audience. Over the past twenty years, her IT definitions have been published by Que in an encyclopedia of technology terms and cited in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine, and Discovery Magazine. She joined Techopedia in 2011. Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages.