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E-Commerce & RetailWeb & Mobile

AI-Powered E-Commerce Platform That Tripled Conversion Rate

Web & MobileE-Commerce & Retail
E-Commerce platform showing personalised product recommendations and checkout flow

Project Overview

mTouch Labs redesigned and rebuilt an established retail brand's e-commerce platform from a slow, conversion-killing legacy system into a fast, AI-personalised shopping experience — achieving a 3× improvement in conversion rate within 60 days of launch.

The Challenge

A mid-sized retail brand with 50,000+ SKUs was losing revenue to a 6-second page load, a broken mobile checkout, and zero personalisation. Customers were abandoning carts at 78% with no analytics to understand why.

  • 78% cart abandonment rate with no visibility into drop-off points
  • 6.2-second average page load on mobile — well above the 3s threshold
  • Zero product personalisation; same homepage for every visitor
  • Legacy Magento 1 installation with 200+ outdated plugins
  • Inventory sync with warehouse took 24 hours, causing overselling

Our Strategic Approach

We ran a 10-day CRO audit before writing a single line of code — heatmaps, session recordings, and funnel analysis across 3 months of data. This gave us a prioritised list of 23 friction points to eliminate, ranked by revenue impact.

The Solution We Delivered

A headless Next.js storefront backed by a custom Node.js commerce API, with a real-time inventory sync engine and an AI recommendation layer powered by a collaborative filtering model trained on 18 months of purchase history.

  • AI-powered product recommendations on homepage, PDP, and cart
  • One-page checkout with address autocomplete and saved payment methods
  • Real-time inventory sync with warehouse management system
  • Progressive Web App with offline browse capability
  • Advanced search with faceted filtering and typo tolerance
  • Admin dashboard with live sales analytics and heatmaps

Technologies Used

  • Next.jsHeadless storefront with SSR and ISR for sub-second page loads
  • Node.jsCustom commerce API handling catalogue, cart, and orders
  • PostgreSQLProduct catalogue, orders, and customer data
  • RedisSession management and product listing cache
  • Python / scikit-learnCollaborative filtering recommendation model
  • ElasticsearchProduct search with typo tolerance and faceted filters
  • AWS CloudFrontCDN for global image delivery and edge caching

Development Process

  1. CRO Audit & Funnel AnalysisIdentified 23 friction points across the existing funnel using heatmaps and session recordings
  2. Headless Architecture DesignDesigned the Next.js + Node.js headless stack with ISR for catalogue pages
  3. Core Platform BuildBuilt product listing, PDP, search, cart, and checkout from scratch
  4. AI Recommendation EngineTrained collaborative filtering model on 18 months of purchase data and integrated via API
  5. Real-Time Inventory SyncBuilt webhook-based sync engine to push warehouse stock changes in under 30 seconds
  6. Performance & LaunchAchieved Lighthouse score of 96 on mobile before go-live, followed by phased traffic migration

Results & Impact

The new platform launched to full traffic in week 8. Within 60 days the client saw dramatic improvements across every key metric.

  • Conversion rate improved 3.1× from 1.2% to 3.7%
  • Page load time reduced from 6.2s to 0.9s on mobile
  • Cart abandonment dropped from 78% to 51%
  • Revenue from AI recommendations reached 24% of total GMV within 30 days

🎯 Key Takeaway

Speed and personalisation are not nice-to-haves in e-commerce — they are the product. Every 100ms of improvement drives measurable revenue. This project paid for itself within a single quarter.

Ready to Build Something Similar?

mTouch Labs combines AI-powered development with deep industry expertise to deliver solutions 3× faster.

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Frequently Asked Questions

How long does an e-commerce replatform take with mTouch Labs?
Our headless e-commerce builds typically take 6 to 10 weeks depending on catalogue size and integration complexity. This project launched in 8 weeks with 50,000+ SKUs.
Do you work with existing payment gateways?
Yes. We integrate with Stripe, Razorpay, PayU, and any gateway that exposes a REST API. We also support custom payment orchestration layers.
Can the AI recommendations work with a small product catalogue?
The collaborative filtering model works best with 500+ SKUs and 6+ months of purchase history. For smaller catalogues we use content-based filtering as a fallback.
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