arXiv:2507.17080v1 Announce Type: cross Abstract: Multimodal learning plays a critical role in e-commerce recommendation platforms today, enabling accurate recommendations and product understanding. However, existing vision-language models, such as CLIP, face key challenges in e-commerce recommendation systems: 1) Weak object-level alignment, where global image embeddings fail to capture fine-grained product attributes, leading to suboptimal retrieval performance; 2) Ambiguous textual representations, where product descriptions often lack contextual clarity, affecting cross-modal matching; and 3) Domain mismatch, as generic vision-language models may not generalize well to e-commerce-specific data. To address these limitations, we propose a framework, VL-CLIP, that enhances CLIP embeddings by integrating Visual Grounding for fine-grained visual understanding and an LLM-based agent for generating enriched text embeddings. Visual Grounding refines image representations by localizing key products, while the LLM agent enhances textual features by disambiguating product descriptions. Our approach significantly improves retrieval accuracy, multimodal retrieval effectiveness, and recommendation quality across tens of millions of items on one of the largest e-commerce platforms in the U.S., increasing CTR by 18.6%, ATC by 15.5%, and GMV by 4.0%. Additional experimental results show that our framework outperforms vision-language models, including CLIP, FashionCLIP, and GCL, in both precision and semantic alignment, demonstrating the potential of combining object-aware visual grounding and LLM-enhanced text representation for robust multimodal recommendations.