Juphy’s Weekly E-Commerce News Express – 24-28 February 2025
Ceyda Duz
In this week’s edition of E-commerce & AI Highlights, we dive into the transformative impact of AI on the checkout experience, explore the rise of autonomous shopping agents, and share the latest updates from industry leaders like Affirm, Shopify, Temu, and Klaviyo. Stay tuned for insights that will help you stay ahead in the fast-evolving e-commerce landscape.
Too Many Ads at Checkout? AI Can Fix That
A new study by Rokt and The Harris Poll reveals a major challenge in online shopping: too many ads at checkout drive customers away. Instead of enhancing the experience, an overload of promotions makes buyers feel overwhelmed, leading to cart abandonment.
The Power of AI in Checkout Optimization
The study found that shoppers are twice as likely to engage with marketing messages when they are relevant and well-timed. AI and machine learning can optimize this critical moment by:
- Delivering personalized offers based on individual shopping behavior
- Reducing clutter and distractions to create a smoother checkout experience
- Removing ads entirely in cases where they add no value to the customer journey
By leveraging AI effectively, brands can increase conversions while fostering stronger relationships with their customers.
Younger Generations Expect Personalization
Millennials and Gen Z shoppers have even higher expectations when it comes to personalization. According to the study:
- 78% of Millennials and 77% of Gen Z feel more confident in their purchases when brands recognize their preferences.
- 73% of Gen Z prefer buying from businesses that offer tailored products and services.
- 32% of consumers are more likely to join a brand’s loyalty program after a seamless and relevant checkout experience.
AI-Driven Personalization Boosts Revenue and Loyalty
Beyond increasing conversions, personalization also has long-term benefits for e-commerce businesses. The research found that:
- 70% of U.S. shoppers will spend more with brands that understand their needs.
- 47% of customers are likely to return if they receive a relevant shopping experience.
This indicates that AI isn’t just improving transactions—it’s building long-term customer relationships and increasing lifetime value.
The Future of Checkout: Less Noise, More Relevance
AI can help make checkout “calm” and frictionless by eliminating unnecessary noise. Instead of bombarding customers with ads, brands should focus on delivering a clean, relevant, and personalized experience.
For e-commerce businesses, the takeaway is clear: prioritizing AI-driven personalization at checkout leads to higher conversions, stronger customer loyalty, and increased revenue.
The Next Era of AI in Retail: Autonomous Shopping Agents
Retail AI is entering a new phase. After predictive and generative AI, the industry is now moving toward autonomous agents—AI-powered systems that can complete shopping tasks without human intervention. According to Salesforce’s latest research, 32% of consumer goods companies have already implemented generative AI, and many are now looking toward AI that doesn’t just assist but takes action.
From AI Assistants to Fully Automated Shopping
This evolution marks a fundamental shift. While chatbots and generative AI can provide information or generate content, autonomous shopping agents take it further by handling entire purchase journeys. Instead of just suggesting products, they can analyze customer preferences, add items to carts, and even complete transactions.
Retailers are already experimenting with these capabilities by using AI as assistants that recommend outfits based on customer photos or to guide customers through the buying process, answer questions, and manage returns—all without human input.
Rethinking Retail Media and Marketing for AI
The rise of AI shopping agents is also changing how brands approach marketing. Traditional retail media strategies focus on grabbing consumer attention, but in an AI-driven world, brands need to optimize for algorithms instead of emotions.
Instead of persuasive visuals or lifestyle-driven marketing, structured product data, specifications, and AI-friendly attributes will play a bigger role in how products are discovered and recommended. Platforms like Amazon Advertising and Walmart Connect may shift from human-focused bidding models to ranking systems that prioritize AI-driven search and recommendations.
Challenges and Considerations
While AI shopping agents promise efficiency, they also introduce new challenges. Retailers must ensure transparency in how AI makes purchase decisions, as trust will be a key factor in consumer adoption. Additionally, businesses will need to adapt legacy systems and retrain employees to work alongside these evolving AI tools.
The Future of E-Commerce is AI-Powered
This transformation isn’t just theoretical—it’s happening now. As AI progresses from assisting to acting on behalf of consumers, brands, and retailers must adjust their digital strategies to stay ahead. Those who embrace autonomous AI today will be the ones shaping the future of retail tomorrow.
Affirm and Shopify Expand Global Partnership
Affirm and Shopify have expanded their partnership to offer pay-over-time options to more merchants worldwide. Affirm will continue as the provider for Shop Pay Installments in the U.S., and soon eligible Shopify merchants in Canada will also be able to offer this payment option at checkout. The partnership is also entering new markets globally, including the U.K..
Temu Opens its Platform to Canadian Businesses
Temu, the e-commerce platform owned by China’s PDD Holdings, is now inviting Canadian businesses to sell directly on its marketplace. The platform is launching a local-to-local model, enabling Canadian sellers to connect with local consumers for faster order fulfillment and a wider product range. This opportunity is open to businesses registered in Canada that have local inventory and fulfillment capabilities.
Klaviyo Launches B2C CRM for Consumer Brands
Klaviyo has introduced its new B2C CRM platform, designed specifically for consumer brands. The platform includes several new products, such as Customer Hub, which allows shoppers to track orders, manage subscriptions, and discover products. Additionally, AI-powered Marketing Analytics helps brands gain insights into customer behavior and purchasing patterns.
Juphy AI: Personalization Without the Noise
As e-commerce shifts towards AI-driven checkout experiences, Juphy AI ensures that Shopify brands provide personalized and joyful yet distraction-free interactions. Instead of overwhelming customers with excessive ads, Juphy’s AI:
- Delivers relevant product recommendations at the right moment
- Enhances customer confidence with tailored assistance
- Reduces friction in the buying journey to boost conversions
With AI-powered automation, Juphy helps brands increase revenue and loyalty by making shopping smoother, not noisier. Ready to optimize your checkout experience? Try Juphy AI for free: apps.shopify.com/juphy
Key Takeaways
AI Can Fix Too Many Ads at Checkout: A new Rokt survey reveals that too many ads at checkout drive customers away. Instead of boosting sales, overloading shoppers with promotions causes them to abandon carts. However, AI can optimize this critical stage by personalizing offers and reducing distractions. AI helps create a clean, relevant, and seamless checkout experience, which increases engagement and conversions.
Autonomous Shopping Agents in Retail: AI in retail is evolving from assistive tools to fully autonomous shopping agents. These AI-powered systems handle entire shopping journeys—analyzing preferences, adding items to carts, and completing transactions—without human intervention. Retailers are exploring AI-driven assistants that can guide customers, recommend products, and manage returns automatically.
Affirm & Shopify Expand Globally: Affirm and Shopify have expanded their partnership to offer pay-over-time options to more global merchants. This includes the continuation of Shop Pay Installments in the U.S. and expansion into Canada and the U.K. The expanded partnership enables Shopify merchants to offer flexible payment options, helping increase conversion rates and customer satisfaction at checkout.
Temu for Canadian Businesses: Temu, the e-commerce platform owned by PDD Holdings, is now allowing Canadian businesses to sell directly on its marketplace. With a local-to-local model, Canadian sellers can offer faster order fulfillment and a wider product range to consumers. This new initiative allows businesses with local inventory and fulfillment capabilities to tap into the growing Canadian e-commerce market.
Klaviyo’s New B2C CRM: Klaviyo has launched a new B2C CRM platform tailored for consumer brands. The platform includes tools like Customer Hub for managing orders and subscriptions, along with AI-powered Marketing Analytics to provide insights into customer behavior. This tool enables brands to create personalized experiences that increase engagement and conversion rates.
