StoBasket: Joint Upsell and Cross-Sell Optimization for Contribution Margin

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Researchers have developed StoBasket, a new framework that treats upselling and cross-selling as a single optimization problem rather than separate tasks. By calculating the expected 'incremental contribution margin,' the AI learns when to suggest a more expensive replacement versus an additional add-on. Simulations show this approach significantly outperforms traditional models that only rank items by general relevance.