arXiv AI By Xin Heng

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

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StoBasket is a joint stochastic basket‑editing framework that simultaneously optimizes upsell and cross‑sell offers for a retail basket. It selects replacement and addition offers, evaluates them by expected incremental contribution margin, and couples the responses through displayed‑offer, accepted‑offer, and joint‑acceptance channels—an approach that, according to simulations on five public basket datasets, captures almost all attainable margin (within 0.5–0.7%). The method demonstrates that correct economic accounting and joint selection can unlock significant margin that traditional popularity‑weighted or next‑basket recommenders leave unrealized, and it provides an exact optimizer that solves real baskets in milliseconds.

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