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AI in Retail & E-commerce · AI Product Recommendation Engines

What data do recommendation algorithms use to personalize suggestions?

Recommendation algorithms typically draw on browsing behavior, purchase history, cart activity, search queries, and product attributes, along with broader signals like trending items and, where available, account or loyalty program data.

Legal disclaimer

This page provides general information only and is not legal advice. Laws vary by jurisdiction and change over time. Consult a licensed attorney in your jurisdiction before making decisions based on this content.

Key takeaways

  • Behavioral data such as page views, clicks, and time spent on a product typically carries more weight than demographic data alone.
  • Purchase and cart history provide some of the strongest, most direct signals about a shopper's interests.
  • Search queries and filters applied on a site reveal explicit intent that algorithms use to refine suggestions.
  • Loyalty program and account data, where a shopper is logged in, can let a retailer link behavior across devices and visits.

The Range of Signals Behind a Recommendation

Recommendation algorithms rarely rely on a single type of data. Instead, they combine multiple layers of information collected as a shopper interacts with a site or app. This typically starts with behavioral data — which pages a shopper views, how long they spend on a product, what they add to or remove from a cart, and what they search for. These signals are considered strong indicators of current interest because they reflect real-time actions rather than static profile information.

Layered on top of behavioral signals, algorithms also use structured product data — category, price, brand, and descriptive attributes — to compare items and find similar ones a shopper hasn’t yet seen.

Account, Purchase, and Loyalty Data

For shoppers who are logged in or enrolled in a loyalty program, retailers can draw on a more complete purchase history and link behavior across devices and visits, producing more consistent personalization over time. This might include past order categories, price ranges typically purchased, and how frequently a shopper returns to buy certain kinds of products. Loyalty program data can also incorporate preferences a shopper has explicitly provided, such as favorite categories or sizes, adding a layer of stated preference on top of inferred behavioral signals.

Anonymous or guest shoppers are still personalized to some degree using session-based data and browser identifiers, though this tends to produce less consistent results across separate visits compared to logged-in accounts.

Search terms and filters a shopper applies — such as narrowing results by size, color, or price range — provide some of the clearest explicit signals of intent, since they represent a shopper directly stating what they’re looking for rather than an algorithm inferring it indirectly. Recommendation systems also incorporate broader, non-personal signals like overall product popularity, seasonal trends, and inventory availability, which help fill gaps for shoppers with limited individual history and keep suggestions aligned with what’s currently in demand.

Because data practices differ by retailer and are shaped by applicable privacy laws, the exact scope of data used, and how long it’s retained, is generally described in a retailer’s privacy policy rather than being uniform across the industry.

Bottom Line

Recommendation algorithms typically combine behavioral data, purchase and account history, search intent, and broader product or trend signals to personalize suggestions. The specific mix varies by retailer, and shoppers generally have some ability to review or influence what data is used through account settings or privacy disclosures.

Important caveats

  • The exact combination and weighting of data sources is generally proprietary and not disclosed in detail by individual retailers.
  • Regulations in some jurisdictions require retailers to disclose categories of data collected and offer opt-out choices.

Frequently asked questions

Do recommendation algorithms use data from outside a retailer's own site?

Some do, particularly when working with third-party advertising or data partners, though many retailers rely primarily on first-party data collected directly through their own site or app.

Does a shopper need an account for personalization to work?

No, many systems personalize using anonymous session data and browser identifiers, though logged-in accounts typically allow more consistent personalization across visits and devices.

Can shoppers see what data is being used to personalize their experience?

Many retailers provide some visibility through privacy policies or account settings, and in jurisdictions with data protection laws, shoppers may have a legal right to request more detailed disclosure.

Sources

  1. [1]Retail technology and e-commerce coverage — Retail Dive
  2. [2]Consumer privacy guidance — Federal Trade Commission
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Written by Editorial Team

Last updated July 28, 2026

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