Recommender systems are changing from novelties used by a few E-commerce sites, to serious business tools that are re-shaping the world of E-commerce. Many of the largest commerce Web sites are already using recommender systems to help their customers find products to purchase. A recommender system learns from a customer and recommends products that she will find most valuable from among the available products. In this paper we present an explanation of how recommender systems help E-commerce sites increase sales, and analyze six sites that use recommender systems including several sites that use more than one recommender system. Based on the examples, we create a taxonomy of recommender systems, including the interfaces they present to customers, the technologies used to create the recommendations, and the inputs they need from customers. We conclude with ideas for new applications of
recommender systems to E-commerce.