What is a Merchandising?
Understanding Merchandising in E-commerce
Quick Definition
Merchandising is the strategic practice of selecting, presenting, and promoting products to maximize sales and enhance customer experience. In e-commerce, it involves curating product assortments, optimizing product displays, creating compelling product descriptions, and using data-driven techniques to guide customer purchasing decisions across digital platforms.
E-commerce Merchandising: Strategic Product Presentation
Core Components of Digital Merchandising
- •Product Curation: Selecting and organizing products that align with customer preferences and market trends
- •Visual Presentation: Creating engaging product displays, high-quality images, and intuitive navigation
- •Personalization: Tailoring product recommendations based on individual user behavior and preferences
- •Strategic Positioning: Highlighting high-margin products, creating effective product collections
Key Merchandising Strategies
1. Dynamic Product Recommendations
Use behavioral data to suggest relevant products based on browsing history, purchase patterns, and similar customer interactions.
2. Social Proof Integration
Display customer reviews, ratings, and user-generated content to build trust and influence purchasing decisions.
3. Scarcity and Urgency Tactics
Highlight limited stock, time-sensitive offers, and exclusive deals to drive immediate action.
4. Cross-Selling Techniques
Suggest complementary products that enhance the primary purchase and increase average order value.
Merchandising Performance Metrics
| Metric | Description | Benchmark |
|---|---|---|
| Conversion Rate | Percentage of visitors who make a purchase | 2-5% |
| Average Order Value | Total revenue divided by number of orders | $50-$150 |
| Product Page Views | Number of times product pages are viewed | Varies by industry |
| Add-to-Cart Rate | Percentage of visitors adding products to cart | 10-15% |
Advanced Merchandising with Technology
Modern e-commerce merchandising leverages advanced technologies to create personalized, data-driven shopping experiences. AI and machine learning enable real-time product recommendations, predictive analytics, and dynamic pricing strategies.
Tools like Growth Suite enhance merchandising capabilities by providing sophisticated visitor behavior tracking, enabling merchants to show targeted, time-limited offers based on individual engagement levels. This approach transforms generic product displays into personalized, conversion-optimized experiences.
Successful merchandising is about understanding customer intent, presenting products contextually, and creating seamless, intuitive shopping journeys that guide customers toward making purchases.
Put Merchandising into Practice
Ready to apply these concepts to your store? Growth Suite provides the tools you need to implement effective merchandising strategies.
Other Terms in "M"
- Machine Learning
- Manual Action
- Manual Collection
- Manual Fulfillment
- MAP (Minimum Advertised Price)
- Margin
- Marketing Attribution
- Marketing Automation