How to Automatically Create Dynamic Product Bundles to Increase ACV and AOV (Code Included)
This blog explores an AI-driven approach to automated product bundling, leveraging LLM-based recommendations and similarity analysis to create intelligent bundles. The process involves three steps: first, an LLM suggests five complementary products based on the main item’s use case; second, cosine similarity matching identifies the closest alternatives from a retail database; and third, another LLM call generates structured bundles for enhanced shopping experiences. By automating product pairing, businesses can boost sales, improve cross-selling, and optimize inventory, making recommendations more relevant and conversion-focused.