Also called automated merchandising or personalized product recommendations, in electronic commerce it is a search technology that integrates data and predictive analytics to generate site merchandising. While exact features of predictive merchandising services differ from vendor to vendor, there all have some common functions. Usually tracking tags are used in a merchant's e-mail and on-site that capture and analyze key information at each point in the online shopping process. Web site visitor's preferences are tracked and the system is able to analyze that data in order to automate product offers to other customers with similar behavior on the site. Other aspects of automated merchandising include cross-sell and up-sell of related products, the capability for shoppers to compare related products, and the ability to show returning customers products they previously showed an interest in.
See also searchandizing.