Online shopping has become a significant part of everyday life but it can take a lot for sellers to keep the whole big lot of their products in order sometimes. Unlike physical retail, product categorization online can be a little harder.
Let’s look at it this way. When a customer walks into a shopping mall, what points them to the right direction of the product they wish to purchase is product inventory. Clothing stores are often next to each other, tech-based shops are in the same section, and furnishing items can be found on the same floor. Based on a product’s categories and related items, shoppers know where to go to find what they’re looking for.
Online stores must provide buyers with a similar shopping experience, with integrated product categorization to help them find and pick the items they want to buy, making it easier for customers to navigate and find what they are looking for.
eCommerce product categorization helps customers to navigate stores with ease, and is an excellent way to streamline the online shopping process and optimize customer experience. Here are six benefits of eCommerce product categorization:
1) Improved user experience: With so many stores in the online space, you want to create a path of least resistance for your customers. Better organized sites make it as easy as possible for shoppers to find what they’re looking for. Categorizing products allows customers to easily browse and search for items in a more organized and intuitive manner. It helps them quickly narrow down their options and find products that meet their specific needs, leading to a better user experience. Without product categorization, you’re failing a lot of customers and not meeting their expectations, which can lead to a drop in sales.
2) Enhanced searchability: An excellent product categorization system cuts right to the chase, catering to busy buyers with no time or attention to spare. It allows customers to search for products based on specific categories, refining their search results and increasing the chances of finding the right items quickly. In order to retain shoppers and attract impulse purchases, products need to be arranged in a hierarchy to streamline browsing with increased product visibility. The more specific your categorization is, the more opportunities you have for supplying detailed attributes in your listings.
3) More efficient product management: Product hierarchy is not just important for customers. Categorizing products also aids your business by enabling efficient inventory management. All business departments must have quick access to all products to maintain product information. By grouping products by category, businesses can track and manage inventory levels, monitor product performance, replenish needs and make informed decisions about restocking and product assortment. This improves the overall workflow and ensures work gets done faster. Categorization can also provide insights into product performance and customer preferences within different categories, which helps businesses identify gaps or opportunities in their product offerings.
4) Better facilitation of upselling and cross-selling: Effective product categorization can facilitate cross-selling and upselling strategies. By showcasing related or complementary products within the same category, eCommerce platforms can encourage customers to explore additional options and potentially make additional purchases. For example, if customers are looking for earrings, they’re more likely to buy two or three pairs if they see an entire category page full of great options. On the other hand, if a customer is browsing for a camera, cross-selling suggestions might include a memory card, camera tripod, or camera lens. By showcasing these related products during the purchasing process, businesses can increase the likelihood of customers adding more items to their cart.
5) SEO visibility: Proper categorization of products can positively impact search engine optimization (SEO) efforts. Each product category can have its own targeted keywords and metadata, including title tags, meta descriptions, and headers. By optimizing these elements for relevant keywords, businesses can improve the visibility of their category pages in search engine results. For example, if a customer searches for a black leather jacket and your black shirt shows up in their search results because it’s miscategorized, you are not reaching the customers who want to buy your particular product. High-quality, informative content can improve SEO rankings and attract organic traffic to the category pages.
6) Ability to customize the shopping experience for customers: Imagine walking into a department store to find products scattered randomly with no organization. Chances are you’ll walk back out again. In the same light, well-designed product categorization can contribute to positive buyer experiences overall. Categorization provides the foundation for personalized recommendations and product suggestions. By analyzing customers’ browsing and purchase history within specific categories, eCommerce platforms can offer tailored recommendations that align with individual preferences and increase the likelihood of conversion.
Overall, proper product classification and categorization create a better user experience, which, as we know, is mission-critical for any brand. Customers can easily find similar products, search for products using common keywords, and enjoy a more organized and streamlined shopping experience.
