Electronic commerce has dramatically changed the whole picture of the retail business and has brought new trends in consumer relations and buying behavior. Mass customization as a result of better usage of big data and AI has become an important approach, changing the customer expectations and the way people shop. In this paper, authors investigate the principal features of personalization, its effects on customers, and its future developments in the sphere of e-commerce. This research applies both quantitative and qualitative approach; it used surveys of 500 consumers and transaction data of a leading platform, and 20 interviews with business stakeholders. The result revealed that 76% of the consumers have ensured that they want Recommendation system which resulted in an increase in conversion rates of 25%. Some of the advantages mentioned by business leaders include increased customer satisfaction, increased sales whereas some of the disputes identified include data privacy and technological upgrade. Based on this study, it can be seen that the level of personalization offers a significant boost to consumers’ e-commerce experience and, consequently, increases sales. However it notes that privacy concerns should be dealt with and capitals is needed to be spent on technology for future growth.