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Personalization in ecommerce is a personal interaction between your website and the shopper. Personilization can be achieved by looking at the context, behavior and history for a customer. The context looks at the specific situation a user is in, what device are they using, where are they located, how did they find your site? Behavior is what they are doing or not doing on your site. History is the actions they have taken on your site and/or purchases they have made in the past. Considering this data and taking action on it, a savvy merchant can present the shopper with offers and interactions related to the shoppers overall experience.

No. Innovation happens when there are special needs, unique products or particular ways for shoppers to buy products. Since the market has not discovered them all, or there are very rare instances of particular "innovations", merchants and agencies will continue to discover new ways to do eCommerce.

Some verticals are crowded with hundreds, if not thousands, of competitors while others have found a niche within a category. Innovation helps merchants find a niche while personalization allows merchants to connect with their shoppers. A combination of the two can produce an increase in sales. Merchants that gravitate towards selling the same products with the same expectations and features as every other site tend to be forced to compete on price alone.