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Naver Expands E-Commerce Push with AI-Powered Plus Store App

Siwoo Jung by Siwoo Jung
PUBLISHED: February 26, 2025 UPDATED: February 27, 2025
in AI, Naver
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Naver Expands E-Commerce Push with AI-Powered Plus Store App
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Naver, South Korea’s leading internet company, is set to launch its standalone shopping app, Naver Plus Store, in the first quarter of this year. Previously available through shopping tabs, the app will now function independently, offering a hyper-personalized shopping experience powered by artificial intelligence (AI).

At an event held at Naver 1784 in Seongnam-si, Gyeonggi-do, Kyunghwa Jung, the product leader of the Naver Plus Store, confirmed the launch plan. The AI-driven app aims to go beyond traditional price comparison by delivering a more customized shopping journey, leveraging Naver’s proprietary technology to refine search results and improve customer satisfaction.

The Naver Plus Store was initially introduced in October last year as part of Naver’s efforts to enhance its personalized shopping features. Currently available as a tab within the Naver app, the platform will soon be launched as a standalone application to provide a more tailored shopping experience. Unlike traditional price comparison tools, the app will analyze individual preferences and shopping behaviors to offer curated product recommendations and trend insights.

A key feature of the new app is the AI Shopping Guide, which will be available in beta at launch. This tool will shift the focus from search-based shopping to a more discovery-driven experience, helping users explore products based on their needs. For instance, when searching for a humidifier, the system will recommend products categorized as child-friendly or easy to clean, reducing search time and improving decision-making. This aligns with global trends, where major retailers like Amazon, Alibaba, and Walmart have integrated AI to streamline online shopping.

Naver’s AI-powered recommendation system has already shown promising results, with a three to fourfold increase in product clicks and transaction shares over the past four years. In the fourth quarter of last year, commerce revenue surged 17.4%, reaching 775.1 billion won, highlighting the growing impact of AI-driven shopping experiences. Additionally, real-time user history calls have doubled over the past year, indicating increased consumer engagement with AI-enhanced services.

Beyond personalization, Naver is also focusing on improving seller benefits. The company plans to cover logistics expenses, including collection, re-shipping, returns, and disposal costs, to support merchants using the platform. Additionally, Naver Plus Membership users contribute significantly higher revenue than non-members, and the company aims to boost sales further by enhancing membership perks.

To strengthen its competitive edge in e-commerce, Naver integrates user-generated content (UGC) and advanced AI solutions into the Naver Plus Store. This includes brand membership solutions to help businesses build customer loyalty and CRM tools for targeted marketing. By leveraging profiling data, Naver seeks to create a sophisticated recommendation system, allowing sellers to connect more efficiently with new and returning customers.

This strategy has already contributed to the company’s growth, with commerce sales reaching 2.92 trillion won last year, making it Naver’s second-largest business segment after search. The introduction of AI-driven recommendations has significantly boosted product clicks and transactions, reinforcing the company’s push toward a more tailored e-commerce ecosystem.

Alongside this expansion, Naver is enhancing its Smart Store seller platform, equipping merchants with AI-powered insights to improve search visibility, pricing strategies, and overall sales performance. Additionally, the company is strengthening its logistics operations by partnering with firms through the Naver Fulfillment Alliance (NFA), reducing costs and streamlining delivery services. With these advancements, Naver expects double-digit growth in its Smart Store division, outpacing the broader market and further solidifying its role in the evolving e-commerce space.

 

Tags: Naver

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