Let’s not sugarcoat it — ecommerce is a very competitive arena in 2025. Customer attention spans are shrinking, acquisition costs are rising, and the old playbook of throwing discounts at the wall to see what sticks is tired. What’s working now is relevance. And AI-driven personalization is making that possible at scale.

Let’s agree on one thing: Personalization isn’t and has never been about slapping someone’s name in a subject line. This is about using real data to make the shopping experience feel tailored — intelligently, efficiently and in real time. That’s where AI earns its keep.

Related: 5 Ways the AI Revolution Can Help Your Ecommerce Business

1. Product recommendations that actually convert

This isn’t new, but it’s more important than ever. Product recommendations driven by AI aren’t just “nice touches.” They’re revenue engines. Amazon didn’t stumble into 35% of its revenue from its recommendation engine. It built systems to understand customer behavior at scale — and it paid off.

If your store still shows the same five “featured products” to everyone, you’re not just behind; you’re losing money daily.

2. Search that understands intent, not just keywords

People don’t browse — they search. And if your search engine can’t read between the lines, expect your bounce rate to climb.

Etsy saw a measurable jump in conversions when it applied AI to personalize search results. When shoppers get results tailored to their taste, they don’t just click — they buy.

This isn’t magic. It’s data. And it’s a missed opportunity for any brand not investing in smarter search.

3. Dynamic pricing isn’t just for airlines anymore

Let’s talk about margins. Dynamic pricing powered by AI lets you stay competitive without tanking profitability. It reacts in real time to supply, demand, behavior and context. Yes, context.

If someone’s on the fence about a purchase, a personalized discount can nudge them over. If demand’s through the roof, raise the price. AI lets you do that — without spreadsheets and guesswork.

Done right, it protects both your bottom line and your customer experience.

4. Tailored on-site content: No one-size-fits-all homepage

We’re past the point where every shopper should see the same homepage banner. AI enables on-site experiences to change based on what users are doing, what they’ve clicked and what they ignored.

You don’t need to hard-code this. AI can auto-adjust in real time — whether it’s showing summer gear to someone who just browsed sandals or pushing outerwear to someone eyeing snow boots.

This isn’t gimmicky. It’s what consumers expect now.

Related: How Your Online Business Can Use AI to Improve Sales

5. Predictive analytics: Marketing before the customer knows they need it

Forecasting isn’t just for finance teams anymore. AI looks at historical trends and individual behavior to predict what someone might want next and when.

Think replenishment nudges, pre-season marketing or surfacing the right products based on past timing. It’s not about being creepy. It’s about being helpful — and frictionless.

Ecommerce shouldn’t just respond to behavior. It should anticipate it.

6. Omnichannel isn’t a buzzword — it’s the baseline

Customers are channel-agnostic. They don’t care if they start on mobile and finish on desktop. They expect their experience to travel with them. And AI helps unify that.

Brands like Sephora are already combining in-store and online data to make recommendations feel personal, no matter the touchpoint. That’s not a future vision — it’s the standard.

The SEO angle no one talks about

Here’s something overlooked: Personalization boosts SEO. Not directly, but through the behavioral signals Google and others do measure — bounce rates, time on site, repeat visits, click-throughs. And AI search engines such as Perplexity and Chatgpt Search engines, as well as others, can actually better understand content and user experiences, and more consumers are now using AI-powered search engines to perform searches.

If a user spends five minutes engaging with personalized content instead of bouncing in 15 seconds? That’s SEO gold. And AI personalization is what makes that happen behind the scenes.

A word on balance: AI’s smart, but it’s not strategic

AI can do a lot, but it can’t think for you. It doesn’t understand nuance, brand or what your customers should care about next quarter.

That’s still on you. Or your team. Or your agency. The best companies are building cross-functional groups (sometimes called AI committees) to evaluate use cases and bring strategy into the loop.

AI is the engine. But people still need to drive.

Related: How AI-Driven Personalization Is Transforming the Retail Industry and Enhancing Customer Experiences

This isn’t just a tech upgrade — it’s a mindset shift. AI personalization is about making every touchpoint smarter and more relevant without adding complexity for the customer. It’s about optimizing experience and performance at the same time.

If you’re in ecommerce and you’re still treating personalization as an optional feature, it’s time to recalibrate. Because customers don’t just want personalization, they expect it.

After three years of writing, rewriting, and refining, I’m thrilled to officially celebrate the launch of Millionaire Milestones: Simple Steps To Seven Figures!

This book has been a true labor of love, not just for me, but for my family as well. It’s the product of countless early mornings, late nights, and weekends hunched over the keyboard, while also navigating the beautiful chaos of parenthood and everyday life.

Each chapter represents years of financial experience, both wins and mistakes, distilled into clear, actionable steps that anyone can take to build wealth over time. I wrote this book to help people from all walks of life hit their first $1 million in net worth, without needing a lucky break or a six-figure salary.

Whether you’re just starting out in your career, navigating a midlife financial reset, or thinking about how to best guide your children toward financial independence, this book will serve as your practical, no-nonsense companion.

The Making Of Millionaire Milestones: A Conversation With My Wife

To mark the occasion, my wife and I recorded a special 30-minute podcast episode discussing the behind-the-scenes of creating Millionaire Milestones, what readers can expect, and some of the emotional ups and downs that came with the process.

We talk candidly about what it took to stay committed, how we managed the juggling act as parents and partners, and why we believe this book can make a meaningful difference in people’s lives. You can listen to it below:

If you’re curious about the deeper motivations behind writing the book, check out my earlier post here: Why I Wrote Millionaire Milestones: Easy Steps To Seven Figures

A Heartfelt Thank You For Supporting Millionaire Milestones

Since July 2009, I’ve published three free personal finance articles a week on Financial Samurai—over 2,500 posts and counting. Instead of putting up a paywall or subscription service, I’ve also sent out a free weekly newsletter for over 10 years, filled with insights, strategies, and stories designed to help you build wealth and live more freely.

So if you’ve ever found comfort, courage, laughter, or joy in my writing, I hope you’ll consider picking up a hard copy of Millionaire Milestones. At under $28, it’s a small gesture that helps support this site and everything I’ve built since 2009.

And if you’ve been able to build significant wealth from reading my work over the years, there’s no better way to pay it forward than by giving the gift of financial freedom through this book.

If you enjoy Millionaire Milestones, I’d be incredibly grateful if you could leave a review on Amazon or share it with someone who might benefit. Word of mouth is still the most powerful way to spread practical financial knowledge that can truly change lives.

Here’s to hitting your next financial milestone—whatever it may be!

If you order a hard copy or more of Millionaire Milestones before May 10, 2025, you’ll receive an exclusive invite to my private video fireside chat on May 25 at 5:30 PM PST. I’ll be sharing deeper insights into the wealth-building strategies featured in the book and how I’m thinking about investing in today’s uncertain landscape. Simply sign up here after your purchase.

For those interested in a more personalized experience: If you order 55 hard copies (available at a bulk discount), you’ll receive a 1-on-1 video consultation with me, plus a full box of books to gift to friends, family, or colleagues. This package includes a 41% discount off my normal consulting rate. If you’re interested, please fill out the form at the bottom of my consulting page here and I’ll get back to you within 24 hours.

To Your Financial Freedom,

Sam

Shoemaker Skechers announced on Monday that it had agreed to be acquired by investment firm 3G Capital in a $9.4 billion deal that would take the company private after nearly three decades as a public entity. It’s the biggest-ever deal in the footwear industry and was unanimously approved by the Skechers board of directors.

The transaction will close in the third quarter of this year and be funded by a combination of cash from 3G Capital as well as debt financing from JPMorgan Chase Bank, per Bloomberg. 3G Capital has agreed to pay $63 per share, a 30% premium to Skechers’ average stock price.

After the deal closes, Skechers will no longer be listed on the New York Stock Exchange. The company will still be led by Founder, Chairman, and CEO Robert Greenberg and its current leadership team, including COO David Weinberg.

“With a proven track record, Skechers is entering its next chapter in partnership with the global investment firm 3G Capital,” Greenberg stated in a press release. “Given their remarkable history of facilitating the success of some of the most iconic global consumer businesses, we believe this partnership will support our talented team as they execute their expertise to meet the needs of our consumers and customers while enabling the Company’s long-term growth.”

^{Skechers founders Robert Greenberg (left) and son Michael Greenberg (right) in a Skechers display room. Photo by Carlos Chavez/Los Angeles Times via Getty Images}

Skechers is one of many footwear companies that signed a letter to President Donald Trump last week asking for a reprieve from reciprocal tariffs, which are as high as 145% for imports from China and at a baseline of 10% for all countries.

Related: The Duty-Free Loophole on Cheap Goods From China Closes Friday. Here’s How It Will Affect Your Wallet.

“As leading U.S. footwear businesses, manufacturers, and retailers, we urge you to exempt footwear from the reciprocal tariffs,” the letter, which was signed by Nike, Adidas, Under Armour, and Puma, reads. It goes on to state that the tariffs could cause “substantial cost increases” and make footwear inventory run low in the U.S.

Skechers is the third-largest footwear company in the U.S. after Nike and Deckers, with a market capitalization of $9.25 billion at the time of writing. The shoemaker was founded in 1992 and went public in 1999 at an initial public offering price of $11 per share.

Skechers’ most recent earnings report, released last month, shows that sales reached a record-high $2.41 billion during the first quarter of the year ending March 31, up 7.1% year-over-year. Wholesale sales increased by 7.8% during the quarter.

The company stated in the report that the strong quarterly sales reflected “strong global demand.” International sales outside the U.S. contributed to 65% of Skechers’ business.

Related: Analysts Like The Fit Of Skechers USA

Meanwhile, 3G Capital has made a name for itself with its emphasis on cost-cutting and restructuring since it was founded in 2004. The firm focuses on zero-based budgeting, or on having executives begin at zero for their budget for every new quarter instead of starting with the expenses of the previous quarter.

3G Capital previously agreed to buy a majority stake in blinds and shutters maker Hunter Douglas NV for $7.1 billion in 2021. The firm also orchestrated the 2015 merger between Kraft Foods Group and The H.J. Heinz Company with the help of Warren Buffett’s Berkshire Hathaway.

Shares of Skechers were up over 24% at the time of writing.