E-commerce is evolving faster than ever, and staying competitive requires more than just selling online. Scaling a business in 2025 means arming yourself with data-backed strategies, AI-powered personalization, omnichannel marketing, and sustainable practices to attract, retain, and convert customers.
In this guide, we’ll cover:
- How to analyze your current position and set realistic goals
- The power of AI, machine learning, and AR in e-commerce
- Customer-centric marketing and omnichannel strategies
- Innovative marketing tactics like influencer collaborations and voice commerce
- Sustainable growth strategies for long-term success
Whether you're a small business owner or a scaling brand, these proven e-commerce growth strategies will help you increase revenue, foster customer loyalty, and expand your market reach.
Analyzing your current position and setting goals
Before focusing on growth, it’s crucial to assess where your business stands today. Analyzing key metrics helps identify strengths, weaknesses, and areas for improvement.
Key metrics to track
- Revenue & profit margins: Are you growing profitably or just increasing sales?
- Customer Acquisition Cost (CAC): How much does it cost to acquire each new customer?
- Customer Lifetime Value (CLV): Are you retaining customers and increasing their value over time?
- Average Order Value (AOV): When customers make a purchase, how much do they spend, on average?
- Conversion rate: How many visitors actually make a purchase?
- Cart abandonment rate: Where are customers dropping off in the buying process?
Tip: Check out DynamicYield’s post to learn more about common e-commerce benchmarks and statistics from 2024.
Setting growth objectives
Once you understand your numbers, set specific, measurable goals using proven frameworks like:
SMART Goals: Specific, Measurable, Achievable, Relevant, and Time-bound objectives.
OKRs (Objectives & Key Results): Define high-level goals and measurable outcomes for tracking progress.
Example SMART Goal:
Increase conversion rates from 2% to 3.5% in 6 months by improving product page layouts and offering real-time customer support.
As you can see, we have a specific percentage to hit, it’s measured via conversion rate, isn’t too over the top and is achievable, is directly related to sales, and has a deadline.
Example OKR:
Objective: Boost repeat purchases.
- KR1: Increase email marketing conversion rates by 20%
- KR2: Lower cart abandonment rate from 60% to 45%
- KR3: Introduce a customer loyalty program to drive retention
The difference here is these goals are quite ambitious, not bound by deadlines, and have a broader scope than SMART goals.
Identifying your target audience and customer segmentation
Understanding who your customers are and how they shop is the foundation of every successful e-commerce growth strategy.
Instead of marketing to everyone, focus on high-value customers and finetune your approach to their needs.
Here’s how you can start understanding and separating your audience:
Analyze customer data
There are plenty of ways to look at your customer data:
- Use Google Analytics, Shopify Reports, or CRM tools to track demographics, location, and buying behavior.
- Identify which of your products drive the most engagement and repeat purchases.
Segment your audience based on behavior
Once you’ve collected your buyer data and/or identified your most and least popular product, you’ll need to separate your audience into categories so you can market to them properly. Here are some common e-commerce persona options:
- High spenders: Customers with a high average order value who respond well to premium offers.
- Frequent buyers: Loyal customers who purchase often and are ideal for loyalty programs.
- One-time buyers: First-time customers who need targeted retention strategies.
- Cart abandoners: Visitors who add products but don’t complete checkout, requiring re-engagement.
Use surveys and feedback loops
Analyzing demographic data only goes so far. The best way to know how you’re doing and what your audience wants is to go straight to the source:
- Directly ask customers what they want via email surveys or post-purchase questionnaires.
- Look at customer service inquiries to understand pain points and barriers to purchase.
Why customer segmentation drives growth
Putting customers into categories or assigning them personas isn’t just for getting to know them better, it has proven benefits:
Higher conversion rates: Personalized product recommendations and emails increase engagement. In fact, 80% of customers are more likely to purchase from companies that provide targeted offers.
Better ad targeting: Reducing wasted ad spend by focusing on audiences likely to convert. Personalized advertising has been shown to reduce customer acquisition costs by up to 50% and increase revenues by 5 to 15%.
Stronger customer relationships: Messaging that speaks to individual needs fosters brand loyalty. Studies indicate that applying technographic segmentation can increase top-of-funnel value by 40%, reduce cart abandonment by half, and boost the likelihood of repeat purchases by a third.
Using artificial intelligence and machine learning in e-commerce
AI and machine learning are changing the way e-commerce businesses operate. From personalized shopping experiences to predictive analytics, these technologies help brands increase conversions, reduce costs, and streamline their operations.
AI can analyze customer data in real-time, allowing businesses to offer personalized product recommendations, dynamic pricing, and automated customer support.
Machine learning also improves inventory forecasting, ensuring products are in stock when customers want them.
Let’s go deeper into these emerging trends and how they’re changing the face of e-commerce at a rapid pace.
AI-powered personalization
Personalization is one of the biggest advantages of AI in e-commerce. AI-driven recommendation engines analyze browsing behavior, past purchases, and customer preferences to suggest relevant products. This keeps shoppers engaged and increases the likelihood of a purchase.
Retail giants like Amazon and Shopify-powered stores use AI to display recommended products on homepages, in cart pages, and through email marketing.
Have a look at these impressive statistics:
E-commerce: A 2021 study found that adding personalization to the shopping experience boosted conversion rates across multiple categories. Grocery conversions, for example, jumped from 1.31% to 1.79%.
Retail: Retailers using AI-driven personalization saw a 36% lift in landing page conversions, showing how tailored experiences drive more sales.
Marketing: Marketers who used AI-generated content had 36% higher conversion rates on landing pages, proving that smart automation can make a big difference.
AI for customer service and automation
AI-powered chatbots and virtual assistants handle routine customer inquiries, cutting response times and improving the overall experience. Additionally, AI-powered chatbots can reduce customer service costs by 30%.
They provide 24/7 support without the need for a large customer service team.
AI also automates email campaigns, sending personalized follow-ups based on customer interactions to boost engagement.
Predictive analytics and inventory management
Predictive analytics and smarter inventory management help businesses stay ahead by forecasting product demand based on trends, past sales, and seasonal shifts. Doing this prevents stockouts, reduces excess inventory, and keeps shelves stocked with what customers want.
Machine learning also identifies customers at risk of dropping off and triggers retention campaigns to bring them back.
AI and machine learning aren’t just for big corporations anymore. More affordable and accessible tools are helping small and mid-sized e-commerce businesses compete.
The key is knowing where to apply AI – through personalization, automation, and inventory forecasting – to spur growth without adding complexity or a ton in extra expenses.
Blockchain for transparency and security
Blockchain technology is revolutionizing e-commerce by tightening security, preventing fraud, and increasing supply chain transparency.
While often associated with cryptocurrency, blockchain’s real power lies in creating trust through decentralized, tamper-proof records.
How blockchain improves e-commerce security
Traditional payment systems rely on centralized databases, which are vulnerable to cyberattacks and fraud. Blockchain changes this by recording transactions across a distributed ledger, making it nearly impossible to alter or manipulate data.
This benefits e-commerce businesses by:
- Securing transactions: Every transaction is encrypted and verified by multiple parties, reducing the risk of fraud.
- Reducing chargebacks: Smart contracts automate transactions, ensuring payments are only completed when both parties meet predefined conditions.
- Protecting customer data: Decentralized storage minimizes the chances of large-scale data breaches.
Building trust through supply chain transparency
Customers today want to know where their products come from, how they’re made, and if they’re ethically sourced. Blockchain provides an unchangeable record of a product’s journey from manufacturer to consumer, allowing businesses to:
- Track authenticity: Luxury brands can verify product legitimacy, reducing counterfeiting.
- Enhance sustainability: Eco-conscious shoppers can trace materials and production methods.
- Increase customer trust: QR codes linked to blockchain records let buyers check sourcing details instantly.
Blockchain adoption in e-commerce is growing, with businesses leveraging its security and transparency benefits to build stronger relationships with customers.
As consumers continue to demand safer payments and ethical sourcing, blockchain could become a standard feature in online retail.
Augmented reality (AR) and its role in e-commerce
Augmented reality (AR) is reshaping the online shopping experience by allowing customers to interact with products virtually before making a purchase.
From virtual try-ons to 3D product visualization, AR helps bridge the gap between physical and digital retail, reducing uncertainty and boosting conversion rates.
How AR changes the shopping experience
One of the biggest challenges of e-commerce is customers not being able to see, touch, or try products before buying. AR helps solve this by offering:
- Virtual try-ons: Fashion and beauty brands allow customers to see how clothing, glasses, or makeup will look on them.
- 3D product demos: Home goods and furniture retailers enable users to place digital versions of products in their real-world space to check fit and style.
- Interactive packaging: Brands add AR elements to product packaging that reveal exclusive content when scanned with a smartphone.
Reducing returns and increasing customer satisfaction
AR isn’t just about making shopping more fun – it also reduces returns by giving customers a more accurate sense of what they’re buying.
Many returns happen because the product doesn’t meet expectations, but AR can help:
- Showcase accurate size and proportions: Customers can visualize furniture or appliances in their space before purchasing.
- Reduce color and style mismatches: Makeup and clothing brands use AR to let shoppers test shades and fits.
- Improve customer confidence: People are more likely to buy (and keep) products when they feel certain about their choice.
AR adoption in e-commerce is rising, with major brands already investing in immersive shopping experiences.
As technology advances, AR is poised to become a core feature of online retail, improving product visualization and helping businesses stand out in a crowded market.
Customer-centric marketing with data analytics
E-commerce success isn't only about attracting new customers, it's also about understanding their behavior, preferences, and shopping patterns to build long-term relationships.
Data-driven marketing strategies allow businesses to personalize experiences, improve retention, and maximize revenue.
Using customer data for personalization and targeted campaigns
Every interaction a customer has with an e-commerce store generates data – browsing history, past purchases, cart activity, and engagement with marketing materials. You can use this data to:
- Deliver personalized product recommendations: AI-powered tools suggest items based on customer interests and past purchases.
- Optimize email marketing: Sending tailored promotions and abandoned cart reminders increases conversion rates.
- Create dynamic pricing strategies: Adjusting prices based on demand, location, or customer segmentation can improve AOV.
- Refine ad targeting: Data-powered campaigns ensure marketing spend is directed at high-intent customers.
Mapping the customer journey for better retention
A customer journey map helps visualize how shoppers interact with a brand across multiple touchpoints. Analyzing data from these interactions lets you:
- Identify drop-off points: Where customers abandon the site or fail to complete purchases.
- Improve UX and checkout processes: Streamlining navigation and payment options can boost sales.
- Segment customers based on behavior: Targeting new vs. returning customers with different messaging increases engagement.
Tip: The more data you collect and analyze, the more you can refine their marketing efforts for higher ROI and customer loyalty.
How Geo Targetly improves personalization
Geo-targeting is a game-changer for e-commerce, helping businesses deliver hyper-relevant content that speaks directly to customers based on their location.
With Geo Targetly’s stellar set of geo-personalization tools, you can create a more tailored shopping experience that drives engagement and increases conversions.
- Geo Redirect: Automatically send visitors to the right store version based on their country, state, or city.
- Geo Popups: Display targeted promotions, discounts, or free shipping offers specific to a visitor’s region.
- Geo Content: Dynamically change product recommendations, banners, and messaging to match local preferences.
- Geo Currency: Show prices in a visitor’s local currency for a frictionless checkout experience.
Ready to try Geo Targetly and deliver personalized, locally relevant content?
Implementing omnichannel strategies for a unified experience
Modern consumers expect a fast and easy shopping experience across multiple channels – from social media and mobile apps, to brick-and-mortar stores.
An omnichannel strategy is the best way to deliver a consistent and connected experience no matter how or where customers engage.
What is omnichannel e-commerce?
Omnichannel e-commerce means integrating all customer touchpoints – website, social media, marketplaces (Amazon, eBay), physical stores, and mobile apps – so that they work together smoothly.
For example:
- A customer sees a product ad on Instagram, clicks the link, and adds it to their cart. Later, they visit the store and complete the purchase, with their loyalty points automatically applied.
- Someone starts shopping on their phone, abandons the cart, and later gets a personalized email reminder with a discount, encouraging them to complete the purchase.
- A shopper buys an item online and picks it up in-store, where they receive a push notification suggesting complementary products.
Why omnichannel matters
Omnichannel strategies aren’t just a trend, they’re a proven way to drive higher customer engagement, retention, and revenue.
Today’s shoppers expect a seamless experience whether they’re browsing on mobile, buying on desktop, or visiting a physical store. And the numbers back it up:
- Omnichannel customers spend more: Shoppers who engage with multiple touchpoints spend 10% more online and 4% more in-store.
- Retention rates skyrocket: Businesses with strong omnichannel strategies keep 89% of their customers, compared to just 33% for those without.
- Higher conversions: Omnichannel campaigns drive engagement and conversions 250% higher than single-channel efforts.
- Loyalty increases: Consistent messaging across channels builds trust and keeps customers coming back.
A strong omnichannel approach makes your brand easier to shop with, increases revenue, and builds long-term customer relationships.
Tip: Track customer behavior across platforms to spot bottlenecks and refine your strategy. The smoother the experience, the more customers will buy.
How to implement an omnichannel e-commerce strategy
The purpose of a successful omnichannel strategy is to create a seamless shopping experience wherever your customers interact with your brand.
Here’s how to make it happen:
Unify customer data
To deliver a personalized and consistent experience, you need a single view of your customer across all channels. This means tracking purchases, preferences, and interactions, whether they happen on your website, in-store, or through social media.
How to do it:
- Use a Customer Relationship Management (CRM) tool like HubSpot, Salesforce, or Klaviyo to centralize customer data.
- Implement analytics platforms that track cross-channel behavior, such as Google Analytics 4 or Mixpanel.
- Sync customer data across email marketing, social media, and customer support tools to tailor messaging and offers.
Tip: The more personalized the experience, the higher the conversion rates. A unified customer profile lets you deliver better product recommendations, timely promotions, and smarter retargeting campaigns.
Master your inventory management
Customers expect products to be available no matter how they shop – online, in-store, or via social media. Stock inconsistencies lead to lost sales and frustrated customers.
How to do it:
- Use real-time inventory management software like Shopify Plus, Cin7, or NetSuite to sync stock levels across all sales channels.
- Implement an automated order fulfillment system that updates inventory in real time when purchases are made.
- Enable "buy online, pick up in-store" (BOPIS) and ship-from-store options to maximize flexibility for customers.
Tip: Prevent overselling by setting up low-stock alerts and auto-replenishment triggers for popular items.
Optimize mobile experiences
With 68% of online sales happening on mobile, a slow or clunky mobile experience can kill conversions. Mobile users demand fast, responsive, and easy-to-navigate e-commerce sites.
How to do it:
- Use mobile-first design principles, guaranteeing fast load times and simple navigation.
- Optimize checkout processes with one-click payment options like Apple Pay, Google Pay, and Shop Pay.
- Make sure product images, descriptions, and CTAs are clear and easy to interact with on small screens.
Tip: A one second delay in mobile loading time can affect conversion rates by up to 20%. Be sure to stay mobile-optimized to avoid missing out on valuable sales.
Get into social commerce
Social media is no longer just a marketing tool, it’s a full-fledged sales channel. Platforms like Instagram, TikTok, and Pinterest now allow users to shop without leaving the app.
How to do it:
- Set up Instagram Shopping, TikTok Shop, and Pinterest Buyable Pins to make your products shoppable directly from social feeds.
- Use live shopping events to showcase products in action and drive real-time engagement.
- Run targeted social ads with retargeting pixels to bring back interested shoppers.
Tip: 73% of Gen Z survey takers discovered new brands via TikTok as opposed to search engines. If your target audience skews younger, social commerce is a must. (Statista)
Integrate customer support across channels
Customers expect quick and effective support whether they reach out via email, live chat, or social media DMs. Poor support experiences are one of the biggest reasons customers abandon brands.
How to do it:
- Implement an AI-powered chatbot to handle common inquiries 24/7 while escalating complex issues to human agents.
- Offer consistent support across email, social media, and phone so customers don’t have to repeat themselves.
- Use self-service resources like FAQ pages, help centers, and knowledge bases to reduce support tickets.
Tip: Brands that offer fast, omnichannel support see 3x higher customer retention rates.
Want to optimize your omnichannel strategy? Use location-based personalization with Geo Targetly to elevate customer engagement across platforms.
Sustainable growth strategies for e-commerce in 2025
In 2025, sustainability is no longer a “nice-to-have”, but a major factor in customer decision-making. Eco-conscious consumers actively seek out brands that align with their values, making sustainable e-commerce a smart long-term investment.
Source: Statista
Eco-friendly products and packaging
Reducing waste and sourcing sustainable materials are both good for the environment and a powerful selling point.
Here are some ways you can make your business more sustainable:
- Use eco-friendly packaging: Replace plastic with biodegradable, compostable, or recyclable materials. Brands like Patagonia and Lush have built strong reputations by prioritizing sustainable packaging.
- Offer carbon-neutral shipping: Partner with logistics providers that offset carbon emissions, or allow customers to contribute to eco-friendly shipping initiatives.
- Source ethical and sustainable products: Work with suppliers who prioritize fair labor practices, ethical sourcing, and environmentally friendly production.
- Reduce returns through better product descriptions and AR: Implement augmented reality (AR) try-ons and detailed sizing guides to minimize return rates and waste.
Tip: Highlight your sustainability efforts on your website, product pages, and checkout process to attract eco-conscious shoppers.
Subscription models for recurring revenue
E-commerce brands are increasingly adopting subscription models to create predictable revenue streams and improve customer retention.
Subscriptions keep customers engaged and reduce acquisition costs by focusing on lifetime value instead of one-time purchases.
Benefits of e-commerce subscription models
Steady revenue flow: Predictable income allows for better financial planning.
Higher customer lifetime value: Customers who subscribe spend more over time than one-time buyers.
Improved customer retention: A well-structured subscription service keeps shoppers engaged longer.
Increased brand loyalty: Subscribers form deeper connections with brands through regular interactions.
Tip: Offer incentives like discounted first-month pricing, free trials, or loyalty perks to encourage sign-ups.
Innovative marketing approaches
With competition fiercer than ever, your business needs to stay ahead of trends and find new ways to engage customers.
Traditional digital marketing tactics like email campaigns and PPC ads still work, but adding new, innovative approaches can boost conversions and brand awareness.
Leveraging influencers
Influencer marketing isn’t just for big brands – small and mid-sized businesses can leverage it effectively, too.
The key is finding the right influencers who align with your audience and brand values.
How influencer marketing drives e-commerce growth
Expands brand reach: Influencers introduce products to new audiences who already trust their recommendations.
Boosts engagement: Influencer-generated content receives higher engagement rates than branded content.
Increases conversions: Authentic product recommendations lead to higher purchase intent.
Improves SEO and visibility: Influencers linking to your site can enhance organic search rankings.
Tip: Micro-influencers (10K-100K followers) often deliver better engagement rates and higher ROI than mega-influencers.
Exploring voice commerce and shoppable content
Voice search and interactive shopping experiences are reshaping e-commerce. As more consumers use voice assistants and social commerce, businesses must adapt to remain competitive.
Optimizing for voice commerce
With the rise of Amazon Alexa, Google Assistant, and Siri, shoppers are making purchases using voice commands.
How to prepare for voice search:
- Optimize product descriptions with natural, conversational language.
- Use structured data markup to help search engines understand product details.
- Focus on question-based keywords (such as, “what’s the best moisturizer for dry skin?”).
Shoppable content: The future of e-commerce
Shoppable content turns videos, posts, and livestreams into direct sales channels. Platforms like Instagram, TikTok, and YouTube now allow customers to purchase products instantly without leaving the app.
- Shoppable videos: Showcase product demos with clickable purchase links.
- Live shopping events: Host real-time sales and Q&A sessions with influencers.
- Interactive ads: Let users explore products directly in video ads.
Tip: Brands that embrace social commerce can capture impulse buyers and reduce friction in the buying process.
Want to personalize your marketing based on customer location? Geo Targetly helps e-commerce brands deliver hyper-relevant promotions and shopping experiences.
Key takeaways for growing your e-commerce business in 2025
Scaling an e-commerce business requires data-driven strategies, customer-first experiences, and adaptability to new trends. The most successful brands focus on long-term growth by optimizing operations, embracing emerging technologies, and refining their marketing strategies.
The most successful brands are those that:
- Use the power of data for smarter decision-making: Use analytics to refine marketing, personalize experiences, and optimize inventory.
- Prioritize customer experience: A well-made, omnichannel shopping journey builds trust and drives loyalty.
- Embrace emerging technologies: AI, AR, and automation can make personalization a breeze and improve conversion rates.
- Stay agile in a shifting market: E-commerce evolves fast; brands that test, iterate, and optimize will stay ahead.
No single strategy guarantees success, but a combination of smart technology, customer insights, and continuous refinement will set businesses up for long-term profitability.
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