Customer Behavior Analytics and Recommendation System for E-Commerce

In the era of digital commerce, personalized recommendations are pivotal for enhancing user experience and boosting engagement. This project presents a comprehensive recommendation system integrated into an e-commerce web application, designed using Flask and powered by collaborative filtering via Singular Value Decomposition (SVD). The system intelligently predicts and personalizes product suggestions for users based on implicit feedback such as purchases, cart additions, and search behavior.

The foundation of the recommendation engine is built on user-item interaction data, derived from the Brazilian e-commerce Olist dataset. Ratings are simulated using weighted scores for purchases and cart additions, reflecting varying degrees of user intent. These interactions are transformed into a user-product matrix and decomposed using SVD, yielding latent user and product features. The model leverages these latent factors to predict user interest in unseen products, enabling precise and scalable recommendation generation.

To further enhance personalization, the system incorporates real-time user activity. Recent search history is stored in an SQLite database and used to prioritize recommendations that align with the user’s current interests. A diversity constraint is also applied to avoid redundancy, limiting the number of recommended products per category.

The web application supports robust user authentication, product exploration by category, cart management, and checkout simulations. It features a visually driven interface with dynamic visualizations for product insights and user interactions. The home page adapts to individual preferences, showing tailored product recommendations and enabling users to explore categories and details.

In summary, this project demonstrates the practical implementation of a hybrid recommendation strategy combining matrix factorization with contextual user behavior. It showcases the importance of latent factor modeling, data preprocessing, and user-centric design in delivering an intelligent retail experience.