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2025’s E-Commerce Revolution: AI Decides Who Gets Discounts

Hayley Chowdhry by Hayley Chowdhry
August 10, 2025
in Business
A A
2025's E-Commerce Revolution: AI Decides Who Gets Discounts

2025's E-Commerce Revolution: AI Decides Who Gets Discounts

The days of blanket discount codes plastered across e-commerce websites may be numbered. A new wave of artificial intelligence technology is fundamentally changing how online retailers decide who receives discounts and when, marking a significant shift in digital commerce strategy that could save merchants billions in unnecessary markdowns while simultaneously increasing conversion rates.

At the forefront of this transformation is Growth Suite, a Shopify application that uses behavioral AI to predict purchase intent in real-time, automatically determining which visitors need a discount incentive and which are already prepared to buy at full price. The technology represents a radical departure from traditional e-commerce practices that have remained largely unchanged since the early days of online shopping.

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The 70.19% Challenge

According to Baymard Institute’s 2025 research, the cart abandonment rate stands at 70.19%, representing one of e-commerce’s most persistent challenges. Perhaps more revealing is another finding from the same research: 43% of US participants who abandoned purchases in the last three months stated they were “just browsing” – not ready to buy at that moment, but interested enough to add items to their carts.

This “just-browsing” segment represents a massive untapped opportunity for merchants. Traditional recovery methods like abandoned cart emails, SMS campaigns, and remarketing ads often fail with this audience because these shoppers weren’t ready to purchase when they left. They liked the products and the store, but the timing wasn’t right. Converting this segment means pure extra revenue for stores – revenue that wouldn’t exist without targeted intervention at the right moment.

“The traditional approach of offering the same discount to everyone is fundamentally flawed,” explains Muhammed Tüfekyapan, founder and CEO of Growth Suite, whose background in behavioral psychology inspired the platform’s development. “Merchants are essentially leaving money on the table by giving discounts to customers who would have purchased anyway, while failing to properly incentivize those who genuinely need that extra push.”

The numbers support this assessment. Studies indicate that 67% of small to medium-sized Shopify merchants report losing significant profits to unnecessary discounting, with many offering blanket 10-15% discounts that reduce margins without proportionally increasing conversion rates.

How AI Changes the Game

Growth Suite’s technology works by tracking every visitor interaction within a Shopify store, analyzing behavioral patterns such as time spent on pages, products viewed, cart additions, and mouse movements. This data feeds into an AI algorithm that predicts purchase intent with remarkable accuracy, identifying visitors as either “dedicated buyers” who are likely to purchase without incentives, or “window shoppers” who might benefit from a targeted offer.

2025's E-Commerce Revolution: AI Decides Who Gets Discounts

It’s crucial to understand what Growth Suite does and doesn’t do. The platform doesn’t address trust issues or payment concerns. Instead, it focuses specifically on visitors who already like the products and the store but aren’t urgently ready to buy. These are the window shoppers who need just the right incentive at the right moment to transform their browsing into a purchase.

When the system identifies a visitor unlikely to convert immediately, it triggers a personalized, time-limited discount offer – but only after detecting genuine product interest. Crucially, each visitor receives only one offer, with unique single-use codes that automatically expire after the specified time period. This approach creates genuine urgency without resorting to the fake scarcity tactics that have plagued e-commerce for years.

“The AI doesn’t just randomly assign discounts,” Tüfekyapan clarifies. “It dynamically adjusts both the discount percentage and duration based on individual behavior patterns. A highly engaged window shopper might receive a 5% discount valid for 15 minutes, while someone showing lower engagement might get 10% for 30 minutes.”

Real-World Impact

Data analysis from Growth Suite’s merchant base reveals significant improvements in key performance metrics. After implementing the platform’s behavioral discount triggers, Shopify stores see their conversion rates increase by an average of 8% to 12%. This improvement isn’t just about closing more sales – it’s about optimizing the entire customer journey.

The impact on the sales funnel is particularly noteworthy. The critical transition from add-to-cart to begin-checkout – a stage where many potential sales are lost – shows a 15% improvement when Growth Suite’s targeted offers are implemented. This suggests the AI is successfully identifying and converting the exact moment when window shoppers are most receptive to incentives.

2025's E-Commerce Revolution: AI Decides Who Gets Discounts

Perhaps most importantly for merchant profitability, stores using Growth Suite report nearly a 20% reduction in discount-related revenue loss. By eliminating blind discounting – the practice of offering the same discount to everyone regardless of their purchase intent – merchants preserve margins while actually increasing conversions. This seemingly paradoxical result demonstrates the power of precision targeting over blanket approaches.

The platform also provides detailed analytics that reveal previously hidden patterns in customer behavior. Merchants gain insights into their conversion funnel, product performance, and the average customer journey, enabling data-driven decisions beyond just discount optimization.

Democratizing Enterprise Technology

What makes this technological shift particularly significant is its accessibility to smaller merchants. While enterprise retailers have long employed sophisticated personalization tools, these solutions typically require substantial technical resources and six-figure investments. Growth Suite’s approach changes this dynamic with a 60-second setup process and no coding requirements.

“Small and medium businesses have been locked out of advanced conversion optimization for too long,” notes Tüfekyapan. “This democratization of AI-powered tools could level the playing field between independent merchants and major retailers.”

The timing of this innovation coincides with mounting pressure on e-commerce margins. Customer acquisition costs have risen 222% over the past eight years, according to industry reports, forcing merchants to maximize the value of every visitor. Meanwhile, consumers have become increasingly immune to traditional marketing tactics, with many actively seeking discount codes before purchase through browser extensions and coupon sites.

The Broader Implications

The shift toward AI-driven, intent-based discounting reflects broader changes in digital commerce. As privacy regulations limit third-party data collection, first-party behavioral analysis becomes increasingly valuable. Growth Suite’s approach, which relies entirely on real-time, on-site behavior rather than demographic profiling or purchase history, aligns with these evolving privacy standards.

The technology specifically addresses the growing segment of “just-browsing” shoppers – consumers who enjoy exploring products without immediate purchase intent. Traditional marketing wisdom often wrote off these visitors as lost causes, but Growth Suite’s data proves otherwise. These window shoppers represent a goldmine of extra revenue when approached with the right offer at the right time.

Beyond Discounts: The Full Customer Journey

Growth Suite’s vision extends beyond initial purchase optimization. The platform includes post-purchase upsell capabilities that present one-time offers immediately after checkout completion, allowing merchants to increase average order value without additional customer acquisition costs. These offers use the same behavioral intelligence to suggest products most likely to appeal to each specific customer.

The company has also developed specialized campaigns for email capture, seasonal events, and returning visitors, each powered by the same behavioral analysis engine. This comprehensive approach treats conversion optimization as an ongoing process rather than a single transaction.

The focus remains on converting the “just-browsing” segment – those visitors who like what they see but need a reason to buy now rather than later. By creating genuine, time-limited incentives specifically for this audience, merchants can capture sales that would otherwise never materialize.

Looking Ahead

As Growth Suite expands beyond its initial Shopify focus, the implications for the broader e-commerce industry become clear. The company recently announced plans to integrate with other major e-commerce platforms and expand its AI capabilities to include predictive inventory management and dynamic pricing optimization.

“This is just the beginning,” Tüfekyapan states. “Our goal is to make every aspect of e-commerce more intelligent and efficient. Why should any merchant guess when they can know?”

The challenge for the industry will be adaptation. Many merchants have built their entire marketing strategies around predictable discount cycles and promotional calendars. Transitioning to dynamic, AI-driven approaches requires not just new technology but new thinking about customer relationships and value creation.

Critics raise concerns about the potential for AI systems to become too sophisticated, potentially manipulating consumer behavior in ways that benefit merchants at shoppers’ expense. However, proponents argue that targeted discounting actually benefits consumers by ensuring they receive relevant offers rather than being bombarded with irrelevant promotions.

The New Normal

As 2025 progresses, the e-commerce landscape continues its rapid evolution. Rising operational costs, increasing competition, and changing consumer expectations create pressure for innovation. In this context, AI-powered solutions like Growth Suite represent not just technological advancement but necessary adaptation.

The statistics tell a compelling story: with global e-commerce sales projected to reach $7.4 trillion by 2025, even small improvements in conversion rates and margin optimization translate to billions in additional revenue. For individual merchants, the difference between a 1.3% and 2% conversion rate can determine business survival.

Understanding that 43% of cart abandonments come from “just-browsing” behavior fundamentally changes how merchants should approach conversion optimization. These aren’t lost sales due to price sensitivity, shipping costs, or trust issues – they’re potential extra revenue waiting to be captured with the right incentive at the right moment.

The revolution in e-commerce discounting isn’t coming – it’s already here. As AI systems become more sophisticated and accessible, the question for merchants isn’t whether to adopt these technologies, but how quickly they can integrate them into their operations. Those who successfully navigate this transition may find themselves not just surviving but thriving in an increasingly competitive digital marketplace.

For consumers, this shift promises a more personalized, less intrusive shopping experience. Rather than wade through irrelevant promotions and fake urgency tactics, shoppers can expect offers tailored to their actual needs and interests. Window shoppers, in particular, benefit from receiving incentives precisely when they’re most likely to act on them, transforming casual browsing into satisfying purchases.

Growth Suite is currently available on the Shopify App Store with a 14-day free trial. The platform serves small to medium-sized merchants globally, with particular adoption in North American markets. For more information about the company and its behavioral AI technology, interested parties can visit the Growth Suite website or contact the company directly through their Shopify App Store listing.

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