Hugimals Founder Credits Growth to AI, Payments and Amazon Store

Artificial intelligence-powered tools and commerce platforms are expanding the reach of small retailers, pulling niche, mission-driven products into the mainstream without requiring massive headcount or capital.

That shift is playing out at Hugimals World , a direct-to-consumer brand built around weighted plush products designed to provide comfort and emotional support. In an interview with PYMNTS, founder Marina Khidekel described how the business has leaned into platforms, payments and AI as components of operating infrastructure for scale.

Building a Business Around a Clear Niche

Hugimals World emerged from Khidekel’s effort to fill a gap she saw in the market. After years covering health and mental wellness as a journalist, she wanted a product that offered comfort while also meeting adult aesthetic expectations.

“I was dealing with a lot of nighttime anxiety and wanted something comforting, like a weighted plush, that was also beautiful enough that it felt like a décor item,” she told PYMNTS. “I wanted it to be more substantially weighted than what was offered so it could comfort both adults and kids, and I wanted it to be designed in such a way that it felt like a real hug.”

Early validation came through a hospital pilot program that helped confirm product-market fit.

“The hospitals told us our products calmed their most stressed patients in minutes and asked us how they could get more,” Khidekel said. “From there, I knew it was time to leave my career to work on Hugimals full time.”

She launched Hugimals World “as a business, not a startup,” testing whether customers would order and reorder. “Luckily, the answer was yes,” she said.

Direct-to-Consumer, Built on Shopify

Hugimals’ direct-to-consumer presence runs on Shopify , which serves as the backbone for its owned-channel sales and customer relationships. While the brand now sells across multiple platforms, Khidekel said she views D2C as foundational to understanding demand and managing growth.

“We have a pretty typical and comprehensive payment stack to meet customers where they are,” she said, describing a setup designed to minimize friction rather than push shoppers toward a single option.

That approach reflects a broader reality for small retailers. Payments are no longer a back-office decision. They are a conversion lever, especially for emotionally driven purchases like gifts or comfort products.

Why Payment Choice Matters

Khidekel said flexibility is critical as Hugimals expands internationally, now selling in Canada, the United Kingdom, France, Sweden and Denmark. Cross-border payments introduce layers of complexity that go beyond checkout.

“There are a lot of intricacies here,” she said. “Luckily, I work with a product developer and importer who has been doing this work for years and who stays on top of the latest when it comes to both domestic and international rules and regulations.”

External pressures, including tariffs and freight costs, have made payments and logistics inseparable.

“This past year has been challenging for even the most robust consumer product businesses, with tariffs and skyrocketing freight costs from outside carriers, which affects our non- Amazon business,” she said.

Where AI Fits Into Daily Operations

AI plays a supporting role across Hugimals’ operations, from content to commerce.

“We use AI to support, but not lead on, a number of functions,” Khidekel said. “Creative, copy, social listening, all of the above.”

On Amazon, AI tools are directly tied to performance.

“We also use one of Amazon’s AI tools, Enhance My Listing, which has been really helpful in making sure our listings are fully optimized for Amazon,” she said.

She also pointed to the growing importance of answer engine optimization (AEO), where discovery increasingly happens through AI interfaces rather than traditional search. One customer interaction stood out.

“This person wrote: ‘I asked ChatGPT what I should get to feel held,’” Khidekel said. “That was powerful to see.”

A Multilayered Channel Strategy

Rather than choosing between D2C and marketplaces, Hugimals operates a layered approach. Amazon’s store plays a distinct role in discovery and scale.

“Selling in Amazon’s store was a no-brainer for us,” Khidekel said. “Amazon’s huge customer base gives us incredible visibility. It’s a chance for so many more people to discover Hugimals.”

The company’s Amazon strategy combines inventory readiness, advertising and merchandising tools.

“Our brand has seen a significant year-over-year lift by executing a cohesive, multilayered Amazon strategy,” she said, citing optimized listings, full-funnel advertising and participation in holiday placements that build trust.

Lessons From the Holiday Season

Black Friday and Cyber Monday reinforced the differences between channels.

“Amazon shoppers are mission-driven, comparison-oriented and price sensitive,” Khidekel said, adding that competition is immediate during peak periods.

Preparation mattered.

“Ahead of the holidays, we bring in our inventory early to make sure we have enough to carry us through January,” she said.

Fulfillment by Amazon helped manage storage and avoid stockouts, while accurate forecasting aligned advertising and operations during high-traffic events.

What Comes Next

Looking ahead, Khidekel said she sees opportunity in deeper operational integration. If she could design one AI tool for small brands, she said it would eliminate fragmentation.

“Something that could aggregate all the different order entry platforms our wholesale partners use,” she said. “This would greatly reduce the manual work these siloed platforms require.”

For payments professionals, Hugimals’ story underscores a broader shift. Small retailers are no longer constrained by size. With the right mix of channels, payment flexibility and AI-assisted execution, they are running increasingly sophisticated commerce operations and competing in the same digital arenas as much larger brands.

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